Does car insurance cover lost car keys?

Losing your keys can be a very expensive mistake. Whether you misplaced them or someone has run off with keys on purpose, it can be very frustrating to have a vehicle that you do not have the tools to operate.

The solution would be to order a new set of keys, but once you look for locksmith services or dealerships, you will learn that the cost for an ignition key or door key is a lot higher than you might have guessed.

It might sound like an exaggeration, but some of today’s vehicle models come with keys that can cost you upwards of $500 just to replace.

Luckily, there are ways to avoid paying for the cost out of your own pocket. If you carry the right insurance, there is a possibility that lost or stolen keys will be covered under the benefit.

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Can you get lost key insurance coverage?

Are lost car keys covered by insurance? Whether your lost keys will be covered on your personal auto insurance policy depends on a list of factors. Many times, the policies on key claims will vary from company to company.

Some of the best auto insurance companies that are dedicated to customer satisfaction may have more favorable terms and conditions on things like key replacement, but that does not mean that it will definitely be covered.

Some policies automatically provide cover for your keys, but others require that you add a special key fob replacement rider.

You should review your policy to see how the claims department will handle this claim and if optional riders are required before you ever need to file a claim.

How are stolen car keys insurance claims handled?

If you know that you did not just misplace your keys, you can be confident to say that the keys were stolen. Carriers will handle claims for stolen keys much differently from those that are simply misplaced.

If the key is stolen, this is likely covered under your comprehensive car insurance.

Read more: What to Do if Your Car Keys Are Stolen

The theft of keys presents unique challenges. You not only need to pay for the replacement key, you also need to worry about the security of your car when you are not watching.

This is why insurers might pay for the following after a stolen key incident:

• Cost to replace the ignition key
• Cost to replace the door keys
• Cost to re-key the vehicle to prevent theft

Is there a deductible for lost car key insurance claims?

If your keys are lost, it is likely that the claim will be classified as a comprehensive loss. A majority of claims are required to exceed the deductible that you carry.

In some cases, the carrier will waive the deductible in special circumstances or for key or glass car insurance claims.

Check to see what your deductible is and if it is even worth filing a claim if it is high.

Another scenario where your insurer may pay for keys is when the car is stolen and recovered. Obviously, the fact that the car was stolen creates the need to file a claim. When it is recovered, you cannot expect the keys to be in the engine.

The insurer will need to help you recover by paying for the keys and repairing any damage that was done.

What if I don’t have insurance for lost car keys?

If you cannot file a claim, you should look into other coverage that you carry. Many times, your warranty provider will cover keys. If you have breakdown cover or roadside assistance, the plan may provide cover for a lockout and for a replacement.

This is something to consider before you pay for the new key fob. If you have already paid, some of these will offer reimbursements when you submit your bill.

If you are not happy with your current carrier, it is time to shop the market. Ask the hard-hitting questions and find a company with fair terms.

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Why does key replacement cost so much?

Getting a copy of a key for your home does not cost a fortune, so why is there such a high cost associated with losing car keys?

The answer to your very relevant question is, quite simply put, technology.

Before the 90s, when you locked your keys in your car or even misplaced them, it was not a big deal. You could find a replacement car key at any hardware store, auto locksmith, or car dealership.

It was quite easy to replace a key because it was just a simple metal key that you could put in the ignition tumbler and turn on. Even though this type of key might still exist on modern vehicles, there is usually a transponder inside the key housing that acts as a layer of security.

Read more: Common Ways Cars Are Stolen

As the number of vehicle thefts has risen, the need for advanced key technology has grown. These advancements in technology have made the price of car key replacements much costlier.

What’s the cost of smart keys?

If outfitted with a laser, switchblade, or smart key, you can expect to pay an exorbitant key replacement cost. When you have a smart car that comes with a smart key, it sounds great.

According to How Stuff Works, the key will give you the power to start the ignition, trigger the alarm and disable the engine by pressing a button.

These keys are also programmed to trigger the doors to unlock when the sensor is activated, so you do not even have to press a button.

Not only must you pay for the expensive replacement device, you also need to take this device to your dealer to have it programmed so that it can only be used on your vehicle.

Since the key uses rolling codes to prevent theft, they can cost a pretty penny to replace. The replacement key itself can cost upwards of $200, Auto Blog reports.

Add in the fact that you must pay the cost charged by the dealer for key programming, and you are already in the hole for over $300.

If you must have your car towed to the dealer just for programming, this is an additional cost adding up to over $500.

Case Studies: Examples of Car Insurance Coverage for Lost Car Keys

Case Study 1: Comprehensive Coverage

John owns a luxury car and unfortunately loses his car keys while on a business trip. He realizes that replacing the key and reprogramming it will cost him a significant amount of money. Luckily, John has comprehensive car insurance coverage. He contacts his insurance company and files a claim for the lost keys.

Since comprehensive coverage typically includes coverage for theft-related incidents, John’s insurance company agrees to cover the cost of replacing the keys. He only has to pay the deductible specified in his policy. Thanks to his comprehensive coverage, John avoids the hefty expense of replacing his lost car keys.

Case Study 2: Key Replacement Coverage

Sarah owns a regular sedan and misplaces her car keys during a shopping trip. She reviews her insurance policy and discovers that she has purchased optional key replacement coverage. Sarah contacts her insurance company and files a claim for the lost keys.

Since she has key replacement coverage, her insurance company agrees to cover the cost of replacing the keys without requiring her to pay a deductible. Sarah is relieved that she doesn’t have to bear the financial burden of replacing her lost keys, thanks to her key replacement coverage.

Case Study 3: No Coverage

Michael drives an older model car and does not have any additional coverage for lost car keys. Unfortunately, he realizes that his keys are missing, and he needs to replace them. Since Michael doesn’t have coverage for lost keys, he has to bear the entire cost of replacing them out of his own pocket.

He finds the expense unexpected and burdensome, and it serves as a reminder for him to consider adding key replacement coverage to his car insurance policy in the future.