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What Is Key Replacement Cover in Car Insurance?
Key replacement cover is an add on to a car insurance policy that pays to replace car keys that are lost, stolen or damaged, together with the locks and the reprogramming that go with them. It is sold with a motor policy, inside breakdown cover or as a standalone policy, and it normally pays between £500 and £1,500 in any twelve month period.
- £10 to £50Cover a year
- £500 to £1,500Usual payout limit
- £250Average key replacement
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What Key Replacement Cover Pays For
Key cover is written around one event, which is the loss of the means to get into and start a vehicle. Most policies that carry the name pay for the items below.
- The replacement key or fob. The part itself, cut and supplied for that vehicle.
- Cutting and programming. The locksmith labour that pairs the new key with the immobiliser.
- Replacement locks. New door locks or an ignition barrel when the keys are stolen and the vehicle is at risk.
- A locksmith call out. The charge for travelling to the vehicle, including at night with most policies.
- Onward travel. A taxi, a hire car or a hotel night on policies that include travel benefits, usually inside a set figure.
The Association of British Insurers sets out the main motor policy types in the UK, and key cover sits outside all three as an optional extra rather than inside the comprehensive wording.
Is Key Cover Included in Standard Car Insurance?
No. Standard comprehensive car insurance does not include key replacement cover. Comprehensive cover pays when a vehicle is stolen or damaged, and a key that falls out of a pocket is neither of those events.
One exception runs the other way. When keys are stolen in a burglary or a robbery and the vehicle is at risk, a comprehensive policy often pays for new locks and keys as part of that claim, because the loss sits inside a theft. That claim is a motor claim with the usual excess and the usual effect on the no claims discount.
What Key Replacement Cover Does Not Pay For
Five exclusions appear in almost every policy wording, and they account for most declined claims.
- Keys locked inside the vehicle. The keys are not lost, so the job is vehicle entry rather than replacement.
- Wear and tear. A blade worn smooth over ten years or a button worn through is maintenance, not loss.
- Keys left in an unattended vehicle. Leaving a key in the ignition or on a seat with the car unlocked voids most claims.
- Loss outside the policy period. A claim for keys lost before the cover started is refused.
- Claims without proof. Theft without a crime reference number, or a bill without an itemised invoice.
How Much Key Replacement Cover Costs
Three figures decide whether a policy is good value, and they are the annual cost, the payout limit and the excess.
| Where the cover comes from | Typical annual cost | Typical payout limit | Typical excess |
|---|---|---|---|
| Add on to a car insurance policy | £10 to £30 | £500 to £1,500 | Nil to £100 |
| Add on to breakdown cover | £10 to £25 | £500 to £1,500 | Usually nil |
| Standalone key cover policy | £17 to £65 | Around £1,500 | Usually nil |
| Section inside home insurance | Often included | Lower, often a few hundred pounds | The home policy excess |
The limit matters more than the premium on a keyless vehicle, because a single smart key with programming reaches several hundred pounds. A policy with a low limit on a car with an expensive key leaves a shortfall for the driver to pay.
Key Cover Compared With the Cost of a New Car Key
The arithmetic behind key cover is simple. A policy earns its place when the premium over the years a driver keeps the car sits below the price of one replacement key.
| Vehicle and key | Typical replacement cost | Five years of cover at £25 a year | Verdict |
|---|---|---|---|
| Older car, plain transponder key | £100 to £200 | £125 | A spare key costs about the same and works every day |
| Family car, remote key fob | £150 to £350 | £125 | Cover pays for itself on a single loss |
| Recent car, smart keyless key | £250 to £500 | £125 | Cover is worth having, and the limit is worth checking |
| Premium or off road model | £400 and above | £125 | Cover is worth having, and a low limit leaves a shortfall |
The table compares cover against one replacement. Against the cheapest answer of all, which is a second key made while the first one still works, the picture changes again.
Does a Key Claim Affect the No Claims Discount?
A claim on key cover does not affect the no claims discount when the key cover is a separate policy or a separate add on. The claim sits against the key contract rather than against the motor policy, so the discount on the motor policy stays intact.
A claim made on the main comprehensive policy for keys stolen alongside the vehicle is a motor claim. That claim carries the motor excess and it does affect the no claims discount at renewal. The distinction between the two decides which route costs less over the following five years, and it is worth asking the insurer which one a claim falls under before it is registered.
How a Key Replacement Claim Works
A key claim runs through six steps from the loss to the payment.
- Report the loss. Theft goes to the police first and the crime reference number is kept for the insurer.
- Check the policy documents for key cover, the payout limit, the excess and any approved supplier condition.
- Call the insurer and open the claim before any work is booked, because a bill paid first is sometimes refused.
- Book the locksmith or the dealer. Some insurers send their own supplier and others accept the driver choice.
- Supply the proof. This covers identification, the V5C log book that names the registered keeper and the itemised invoice.
- Receive the settlement. The insurer pays the supplier directly or refunds the driver against the invoice.
The invoice is the part that stalls claims most often. An itemised invoice names the vehicle, the key type, the cutting, the programming and the call out as separate lines. A complaint that reaches deadlock with the insurer goes to the Financial Ombudsman Service.
Where Else Key Cover Comes From
Drivers often hold key cover without knowing it, because it arrives attached to something else. Four places are worth checking before a new policy is bought.
- Breakdown cover. Many breakdown policies sell a key add on, and some include it on the higher tiers.
- Home insurance. Personal possessions sections sometimes cover house keys and car keys together.
- Packaged bank accounts. Accounts with a monthly fee often bundle motor benefits that include keys.
- The vehicle warranty. New car warranties rarely cover a lost key, and they do cover a key that fails on its own.
Holding two policies that cover the same key pays once, not twice. Checking the documents first is the quickest saving available on this subject.
When Paying a Locksmith Directly Costs Less
Three situations make a claim the dearer route even when cover exists.
- The excess sits close to the price of the key. An excess of £100 against a £140 key leaves little to claim for.
- The policy limit sits below the replacement price, so the driver pays the shortfall and still uses up a claim.
- The claim falls on the main motor policy rather than on key cover, which puts the no claims discount at risk.
A mobile auto locksmith gives one figure for the whole job before the visit, which makes that comparison straightforward. Herts Car Keys replaces lost car keys from £120 at the vehicle and confirms the exact price before setting off.
What to Do When Car Keys Are Lost or Stolen
The first hour decides how much the day costs. These five steps come in order.
- Search the last places the keys were used and look for the spare before anything is ordered.
- Report stolen keys to the police and keep the crime reference number.
- Park the vehicle somewhere secure, or have the locks changed, when a stolen key carries the registration on the fob.
- Check the insurance documents for key cover, the limit and the excess.
- Call an auto locksmith with the make, the model, the model year and the location, and ask for one figure that covers the whole job.
Who Wrote This Guide
Darius is the owner of Herts Car Keys and the locksmith on every job. He has six years in the trade and has completed over 7,000 car key and lockout jobs, including work invoiced to insurers on key cover claims.
Itemised Invoices for Claims
Every invoice names the vehicle, the key type, the cutting, the programming and the call out as separate lines, which is what an insurer asks for.
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The line is answered at night and at weekends, and the exact price is confirmed before the visit at any hour.
Lost Your Car Keys and Working Out Whether to Claim?
Herts Car Keys gives one price for the whole job before the visit, so the figure is easy to compare against an excess. Call 07308 888825 or send a WhatsApp message with the make, the model and the location.
Guides and Services Next to Key Cover
Three pages carry the detail behind the figures above.
The guide to replacement car key cost in the UK gives the price of each key type and each make group.
Car key replacement covers the service itself, from £120 at the vehicle.
Car key programming covers the step that pairs a new key with the immobiliser, which is the line insurers query most often.
Frequently Asked Questions
Call 07308 888825What is key replacement cover in car insurance?
Key replacement cover is an add on that pays to replace car keys that are lost, stolen or damaged, along with the locks and the reprogramming that go with them. It is sold alongside a car insurance policy, inside breakdown cover, or as a standalone policy.
Is key cover included in standard car insurance?
No. Standard comprehensive cover pays for a stolen vehicle and for damage, and it rarely pays for a key that is simply lost. Key cover is an optional add on that is bought separately.
Does car insurance cover key fob replacement?
A key fob is covered when key cover is on the policy, because the cover applies to the key as a whole rather than to the metal blade alone. A fob that stops working through a flat cell or a broken button is a repair rather than a loss, and key fob repair deals with that.
How much does key replacement cover cost?
Key cover costs between £10 and £50 a year as an add on, and standalone policies run higher. The payout limit usually sits between £500 and £1,500 in any twelve month period.
Does claiming on key cover affect the no claims discount?
A claim on a standalone key cover policy or on a key cover add on does not touch the no claims discount on the motor policy, because it is a separate contract. A claim made on the main comprehensive policy for stolen keys is a motor claim and does affect it.
Is there an excess on key replacement cover?
Many key cover policies carry no excess, which is one reason drivers choose them over claiming on the main policy. Some carry an excess of around £100, so the figure is worth reading before the policy is bought.
Does key cover pay for a locksmith?
Most policies pay the locksmith bill up to the limit, including the call out, the cutting and the programming. Some pay the locksmith directly and others refund the driver against an invoice.
Does key cover pay when keys are locked inside the car?
Keys locked inside a car are not lost, so most key cover policies treat that as a vehicle entry job rather than a key claim. A car lockout service opens the vehicle without damage.
Does key cover pay for a broken key?
Cover for a broken or damaged key varies by policy. Loss and theft are covered by every policy that carries the name, and damage is an extra that some include and some leave out. A snapped blade is often cheaper to deal with directly through broken car key repair.
Is a police report needed to claim for stolen keys?
A crime reference number is normally required for a theft claim. Stolen keys are reported to the police, and the reference is given to the insurer with the claim.
Are car keys covered on home insurance?
Some home insurance policies include key cover for house keys and car keys, usually as part of a personal possessions section. Checking the home policy before buying a second key cover avoids paying twice.
Is key replacement cover worth it?
Key cover is worth having on a vehicle whose keys cost more to replace than a few years of premiums, which covers most keyless and premium models. On an older car with a plain transponder key, a spare key costs less than several years of cover.
How long does a claim for a replacement key take?
A claim is normally agreed in a day or two once the proof is with the insurer. The key itself is made in the same visit by a mobile auto locksmith, so the delay sits in the paperwork rather than the key. An emergency auto locksmith attends before the claim is settled when the car is needed that day.
What proof does an insurer ask for on a key claim?
Insurers normally ask for the policy details, a description of how the keys were lost, a crime reference number for theft, proof of ownership of the vehicle and an itemised invoice from the locksmith or the dealer.
The locksmith answers
I see both sides of this one. Half my customers with key cover get the whole bill paid and are glad they bought it. The other half find out at the roadside that their policy has a £100 excess and a limit that does not stretch to a smart key.
The bit nobody tells you is the invoice. Insurers want the key, the cutting, the programming and the call out listed as separate lines. I write mine that way as standard, and claims go through without a second phone call.
If your car takes a keyless key, cover is usually worth it. If it takes a plain transponder key, put the money towards a spare instead and you never make the claim at all.