Importance Of a Key Replacement Cover for Your Car

09 Feb 2019

You have car insurance, but did you know you could also get a key replacement cover? Yes, this product is available with your insurer too and you may want to reconsider buying one if you haven’t already.

What is Key Replacement Insurance?

This type of cover helps you claim expenses for replacing remote car keys and keyless frequency operated buttons (FOBs) through the authorised original equipment manufacturer (OEM). It is an add-on cover with extra premium and you will have to check with your insurance provider if they have it.

Why Do You Need Car Key Replacement Insurance?

There are two reasons why you need a car key replacement cover:

Financial Compensation: Replacing a lost or stolen car key is expensive especially for high-end models. Having an insurance helps you make up for the monetary loss.

Seamless Future Claims: You may have wondered, why not use the substitute key in case the original is lost? Yes, you can use the back-up, but avoid putting off replacing the original because in case your car is stolen, your insurer can reject your claim if any component (like original keys) is missing.

Key Replacement Cover Inclusions

As we said before, this is an add-on option; it will reimburse you, up to the sum insured in your policy, to replace your car key in these cases:

• Loss
• Damage
• Theft

Some insurance providers will even compensate you for lockset repairs in case of damage or burglary.

Lost Car Key Insurance Exclusions

Your claim may be rejected under these circumstances:

• If the provider finds that the damage to your car key was deliberate, malicious or with criminal intent
• If the damage or loss is covered under your car manufacturer’s warranty
• If you do not provide the invoice/receipt/bill for payment toward car key replacement or repairs
• If the damage to your car keys is due to radiation, radioactive contamination, exposure to hazardous material like explosives, contact with toxic, invasive or corrosive substances
• If the damaged key does not belong the insured vehicle

What You Need to Know

At the time of filing a claim on your key replacement cover, consider the below points:

• Many insurers stipulate that your non-claim bonus (NCB) will be unaffected after raising a claim for damaged or lost car keys. However, we recommend you check back with your provider.
• You will need to submit a first information report (FIR) for any key replacement claim following theft or burglary.
• Since this type of cover reimburses repair or replacement costs for keys or locksets, your claim must be of the same nature.
• Each insurance provider stipulates a timeframe—usually 30 days—for you to apply for damaged or lost car key insurance.
• You may get reimbursement for the entire lockset if your key is stolen. But you will be compensated only for the key in case it is damaged. This clause varies from one insurer to another.

How it Works

Here is a step-by-step process most insurance service providers will ask you to follow:

• Step 1: Inform your insurer about the loss, theft, or damage to your car keys.
• Step 2: Obtain an FIR from a police station near you in case your car key is stolen.
• Step 3: Get your key repaired or replaced and keep a track of the bill or invoice.
• Step 4: Raise your claim, submitting required documents like the FIR, payment receipt, etc.

If your claim is justified and within your policy’s terms and conditions, there should be no issues in settling the amount.

How to Buy

Buying this type of cover is simple:

• Step 1: Visit the insurer’s website or download the app (if available)
• Step 2: Choose your car insurance policy and select an option similar to key protection cover or car key insurance from the add-ons list
• Step 3: Fill out the digital form and sum insured
• Step 4: Submit and you will receive your policy information upon approval

Understanding Key Types and Expenses

There are mainly three types of car keys:

Manual: These are for older car models, many are now obsolete unless you own a vintage version, however, insurers may cover these.

Remote: This type of car key has a push button and a turning key in case of emergencies.

Keyless: A keyless start (FOB) will not have the turning pin, but you need to be near your vehicle to unlock and start the ignition.

Both the remote and FOB keys require programming and in the case of the latter a computer-generated unique code. If either of these keys are stolen, lost or damaged, your OEM has to re-programme the key and lockset for your car. Whether remote or keyless, both are expensive and time-consuming, that is why having car key replacement insurance makes perfect sense.

Are you looking for complete protection for your car with great add-ons and seamless services? Get started with Liberty General Insurance today.

Disclaimer: For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale. *The discount amount will vary subject to vehicle specification and place of registration