Losing car keys nowadays is a lot more troublesome than you may imagine. You cannot simply call the mechanic next door, who’ll give you a duplicate set of keys. All modern-day technologically sound cars are equipped with electronic keys that are both costly and not easily replaceable. Insurance providers quickly identified the issue and rolled out car key insurance. 

Many of you might not even know if any such insurance exists. Nevertheless, car key insurance comes to the rescue and covers expenses incurred to replace your lost car key. 

Here you might argue that there are two keys, and the second key can always be used in case the first one is lost. Hold on! Losing one of the keys might prove to be the cause of your car theft claim being turned down. We’ll discuss it more later in the article. For now, let’s understand what exactly car key insurance is. 

What is Car Key Insurance? 

Car key insurance is not standalone but is generally available as an add-on to your car’s comprehensive insurance policy. You can get your car insured with car key insurance by paying an additional premium to your insurance provider. Car key insurance will cover the cost of replacing your vehicle key. This could be on account of stolen or lost keys. It even covers the cost of repairing the damaged keys. 

Why opt for car key insurance? 

Modern car keys are equipped with keyless locking mechanisms and Frequency Operated Buttons (FOBs). The replacement cost for such keys may range from Rs 8000 to several lakhs depending upon the model of the car. Spending such a hefty amount on replacing car keys is undoubtedly a financial shock for anyone. Any prudent person would like to avoid such unnecessary out-of-pocket expenses. Car key insurance covers the cost of such replacement at the expense of a nominal annual premium. 

Can’t we use the spare key? 

Car manufacturers provide two keys so that if one key is lost or stolen, the car owner can use the other to operate the car. However, there are two downsides to it. 

Firstly if the lost key falls into the wrong hands, your car is at risk of being stolen. It will be a cakewalk to steal the car if someone with malicious intent gets hold of the lost keys.

Secondly, there’s every possibility that the insurer will turn down your car theft insurance claim. Insurers ask you to produce the original car keys when filing your car theft insurance claim. Failure to produce both original keys may lead to the rejection of your claim. 

Thus using the spare key might not be the most logical choice you’d want to make. It should only be used as an emergency measure. 

Benefits of purchasing car key insurance

By now, it shouldn’t be difficult to understand why car key insurance should be a default pick while buying comprehensive car insurance. 

  • The cost of getting your car keys replaced could easily slide into tens of thousands. It should be a no-brainer if you can protect yourself from such expensive replacement costs by paying a yearly premium as low as a couple of hundred bucks. 
  • Buying car key insurance is straightforward. You can buy it the same way you buy life or travel insurance online. 
  • Claiming car key insurance will not impact the policyholder’s eligibility for a no-claim bonus at the insurance policy renewal time. 
  • In theft and burglary cases, the lock, lock set, and keys will be replaced. While in cases of damaged or broken keys, only the key will be replaced. 

Points to be kept in mind while claiming car key insurance claims

  • Getting your car keys insured doesn’t mean you go completely careless about your car keys. Car key insurance comes with an upper cap on the maximum number of times customers can avail of it. Moreover, it also has a maximum sum insured for key replacement beyond which the insurance policy will not cover. Thus you might not want to lose your car keys frequently. 
  • The insurer will reject the claim if the damage or theft appears to have arisen out of deliberate or malicious acts. 
  • Lost or stolen car key claims must be supported by an FIR ( First Information Report) filed at a local police station. 
  • Claims not supported by valid receipts or invoices of payment of replacement costs will not be entertained. 

The Bottom Line

With so much going around, it’s completely human to be forgetful sometimes. Losing your car keys is one such modern-day problem that could be an unnecessary charge on your pocket. However, buying car key insurance is a much more economical solution to have your back. The insurance will cover the replacement costs of your lost, broken or damaged keys.