Key Replacement Cover: All You Need to Know!

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Key Replacement Cover In Car Insurance

With technological advancement, car keys have also become advanced. The remote car keys or keyless FOBS (Frequently Operated Buttons) allow you to lock or unlock your car without physical touch. With built-in security features that protect your vehicle from theft, replacement or repair of such keys is expensive. Thus, providing coverage for key loss/damage is considered a necessity under a car insurance policy. Let’s find out more about the key replacement cover and how it works.

Does Car Insurance Cover Key Replacement?

Car insurance is an efficient tool to cover financial losses due to damage to your car. While mandatory third-party insurance covers third-party liabilities, a comprehensive policy protects your car from theft, vandalism, natural calamity, etc., but none of them covers key replacement.

So, how do you get a key protect cover?

Insurance companies offer add-ons to car insurance which give maximum protection to your car. Among the many add-on options available, a key replacement cover helps reduce your financial liabilities in case of a lost or damaged key. You can buy this rider under a comprehensive or standalone own-damage car insurance policy. But keep in mind that add-ons come at an extra premium, and your car insurance policy may get a little dearer.

Features of key replacement cover

  • The key replacement cover offers a limited number of claims you can make for lost or damaged keys.
  • In case of theft of your car keys, you need a police FIR to claim key replacement costs.
  • The replaced keys/lock/lockset must be of a similar nature or model for which you raised a claim.
  • Replacement of the car key doesn’t impact the No Claim Bonus (NCB) during policy renewal.
  • You must inform the insurance company immediately about the loss, damage or theft within 30 days of the incident.

What is Covered Under a Key Replacement Cover?

The key replacement cover under four-wheeler insurance covers the following:

Key Replacement – We will reimburse You for the cost of replacing your vehicle keys which are lost or stolen.

Break-in Protection – We will reimburse you for the cost of replacing your locks and keys if your vehicle is broken into. The covered costs include the labor cost for replacing the lock.

Exclusions Under Car Key Replacement Cover

While buying any add-on cover for your car, you must inform yourself about the several exclusions under the policy. This helps in a seamless claim settlement ratio. The exclusions under key replacement cover are as follows:

We will not pay for:

  • Costs other than those listed in the “What is Covered” section;
  • The cost to replace keys to vehicles that You do not own for personal use;
  • Coverage Conditions

For break-in protection claims, you must provide an official police report that confirms the incident happened within the period of insurance.

How Much Does Car Key Replacement Cover Costs?

Usually, a key replacement cover doesn’t cost much. You can avail of it at minimal prices ranging between 5-8 per cent of the car insurance premium. Also, the cost of the key replacement add-on may depend on your car’s model. So, before buying the add-on cover for your car, you must know about the factors affecting the extra premium.

How to Buy a Key Replacement Cover?

You can buy a key replacement cover while buying or renewing a comprehensive or standalone damage policy online. You need to follow the steps below:

  • Visit the insurance company’s website.
  • Buy or renew your car insurance and add the key replacement cover.
  • The insurance company will send you the policy document via email.

How Can You Claim Key Replacement?

To replace or repair your lost or damaged keys, you can follow the steps below:

  • As soon as you know about the lost or damaged key, inform the insurance company immediately by registering a claim.
  • Lodge a police FIR if the keys are stolen. The FIR document will come in handy to support your claim.
  • After the replacement or repair of your car keys, the next essential step is to raise a claim for reimbursement.
  • Submit the claim form and the supporting documents like FIR, repair invoice, etc.
  • After verification, the insurance provider reimburses your incurred expenses.

Things to Remember

Before filing a claim for lost/damaged keys, you must remember the following things:

  • Don’t forget to register an FIR if your keys are stolen.
  • Inform the insurance company about key loss or damage within the time limit mentioned in the policy.
  • Ensure replacing your key/lock/lockset with the same model and keep the invoices safe.

Key Takeaway

Losing a car key is a nightmare, especially remote keys or key fobs. Earlier, car key loss was not a big problem as you could replace it easily. But the new keys are expensive to repair or replace. Thus, a car insurance cover with key replacement can be your saviour if you lose your car keys.

While third-party insurance only covers third-party liabilities, standalone own-damage or comprehensive car insurance offers a lot more in terms of protection. So, a comprehensive policy is a must-buy if you own an expensive car to ensure its overall protection from damage.

With Tata AIG, you can also choose from 12 unique riders and enhance your policy’s coverage with some extra premium. So, buy suitable car insurance with Tata AIG today and experience a hassle-free car insurance claim process.

Some Helpful Documents

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

1. What is Own Damage in Car Insurance?

1. What is Own Damage in Car Insurance?


Own Damage cover or standalone own damage insurance in car insurance is a type of insurance policy that provides protection against various damages to your own insured vehicle and yourself.

2. Is Own Damage Car Insurance Mandatory for Your Car?


No. A standalone own damage insurance or own damage cover is not mandatory. While it is important for protecting your car and you against financial losses, it is the third-party insurance cover that is a mandatory cover and helps you avoid legal fines.

3. Can You Get Add-ons for Stand-Alone Damage Policy?


Yes, you can include add-ons to the own-damage cover to enhance the insurance coverage. We, at Tata AIG, offer a set of 12 unique add-on covers like Zero Depreciation, Roadside Assistance, Engine Secure and more, on our standalone own damage insurance for your car.

4. Are standalone own-damage car insurance policies optional?


Yes, a standalone own damage insurance policy is an optional insurance cover. However, it is necessary to buy an own-damage insurance policy so that your car can be protected at all times against any type of accidental damage, theft, fires or damage arising from natural disasters and human causes – something that the mandatory but basic third-party insurance does not cover.

5. Is own-damage cover a component of basic car insurance?


The meaning of basic car insurance refers to third-party car insurance. Having at least a basic third-party car insurance cover is a legal mandate as per the Motor Vehicles Act of 1988. However, this basic car insurance does not have an own-damage cover. Instead, you can choose and buy an own-damage insurance policy on our Tata AIG website.

6. What is the policy term of standalone own-damage car insurance policies?


A standalone own damage car insurance policy is valid for a year and has to be renewed each year. As per a recent directive by the Insurance Regulatory and Development Authority of India (IRDAI), a standalone own damage cover can be issued for a year and then renewed annually. This is applicable in the case of new cars as well as old cars. If you have a Tata AIG standalone own damage cover, you can quickly renew it in a few easy steps by visiting our car insurance page on our website.

7. How is standalone own-damage car insurance premium computed?


To calculate the own damage car insurance premium, it is necessary to consider the Insured Declared Value (IDV) of the car, the type of vehicle, the purchase year, as well as the geographical area of the car and the policy.

9. Why should I have a standalone own damage car insurance?


If you only need to protect your own car against financial losses and damages and don’t feel the need for third-party insurance, you can simply opt for Tata AIG’s standalone own damage cover. Our own damage car insurance policy enables you to customise your car insurance policy as per your insurance needs and budget.

Also, after September 01, 2019, having a standalone own damage car insurance means that your third-party liability and the own damage policy are independent of one another, and you can buy them both separately.

10. How do I file an own damage car insurance claim for my car?


You can file an own damage insurance car insurance claim for your car on our website by following a few simple steps:

  • In case of a mishap or accident in which there is damage caused to your four-wheeler, inform us about the damages immediately. You can send us an email at or call us on our toll-free number – 1800 266 7780.

  • To file a claim with us, visit the “Claims” section on our website. We will appoint a surveyor to examine the damages to your car and also send you a self-inspection link on your registered mobile number. You can fill up the online form based on your inspection

  • Lastly, you can choose if you would like to opt for cashless claims and have your car repaired at our network garages or select a garage of your preference and receive reimbursement for the repair costs.