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Should You Get An Insurance To Cover Possible Loss Of Car Keys?


If you are a forgetful person who absent-mindedly places things and cannot recall the location when you need them, you have most likely lost your keys at least once. To avoid inconvenience, you could get keys duplicated, however, when it comes to car keys, duplication is not as simple as it used to be.


In the old days, apart from the two sets of keys given with your car purchase, you could get an additional set by duplicating the original at a local key-making shop. But, cars keys now come with computer-coded protection that does not allow duplication. Additionally, duplicating keys with remote-controlled features are even more difficult.

In such cases, you will have to go to your local authorized dealer of the car brand and get the keys made. This would cost Rs 1,500 to Rs 10,000 depending on the kind of car model you own. In cases where you may have lost your key in a market area, you may consider changing your locks as well, costing more.

Should You Get An Insurance To Cover Possible Loss Of Car Keys?

Key Replacement Insurance Cover

The unexpected event of losing one's car keys can be insured with a "Key Replacement Cover." These are usually sold as a value-added service with your car insurance policy that protects against car theft.

  • Some vehicle insurance policies may include the additional cover for loss of keys within them. You can ask for it at the time of the purchase of car insurance.
  • As the name suggests, with the Key Replacement Cover, the insurance company will provide the cost of replacement of your lost car key.
  • It could also cover the cost of installing new locks in the car.
  • Ideally, it will cover the loss of keys for 1 to 2 times during the tenure of the insurance policy.
  • Some key replacement policies also cover the expenses of taking your car to the nearest authorised centre, if you lose your car keys in the middle of the road, far from your home town.
  • There may be limits on the amount covered to get the replacements done or a limit on the number of times you can do it. You need to check it at the time of purchase of the vehicle insurance policy.
  • It will not cover replacement of locking system due to damages.

Should you get the key replacement cover?

It is an add-on feature in the insurance cover as the choice to purchase the cover is both car and person-specific. If you own a high-end model, not only will the key duplication be a pricey affair, you are at a risk of getting your car stolen if you do not change the locks.

Moreover, in case of car theft, the insurance company can reject your claim on the stolen car if you don't possess all the keys to the car (that is both the set of keys that you get at the time of purchase). This is because losing keys, and hence the car, will be treated as negligence and not theft.

The add-on feature in the policy to cover loss of car keys should cost you around Rs 100 to Rs 200, which is nominal considering the high costs of replacing the lock system.

Story first published: Monday, November 18, 2019, 20:22 [IST]
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