Key Replacement Cover

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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 of such keys is expensive. Thus, providing coverage for key loss 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 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 reimbursement of replacement cost of lost or stolen key.
  • 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 or theft within 30 days of the incident.

Scope of Coverage Under Car Key Cover Replacement Add-on

Car Break-In: This policy extends its coverage to include attempted burglaries, ensuring that any damage to locks and keys is addressed. Your insurance company steps in to compensate for the expenses related to replacing the lock and key.

Lost Keys: Unfortunate incidents like losing car keys can result in unexpected out-of-pocket expenses. In such circumstances, the practical solution lies in a key replacement coverage, wherein the insurance company reimburses the associated costs. The insurance company covers the expenses of acquiring a new set of keys from the dealership up to the specified limit.

Lockset Protection: In the event of an accident, the probability of damage to the car lockset is increased. In such instances, you can initiate a claim with your insurance, seeking reimbursement for the expenses incurred in repairing or replacing the lockset.

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.

Who Should Buy Key Protect Cover in Car Insurance?

You can purchase this car key cover replacement based on your needs, but it is especially recommended in the following situations:

  • If your car is parked in an open area with a high risk of theft or attempted theft, having this cover can help offset the expenses for repairing or replacing the lockset or key if they are stolen.

  • Owning a high-end or mid-range car means that replacing or repairing a car key can be costly. The key protection cover becomes valuable in such cases by covering the expenses associated with car key replacement.

  • Individuals with cars equipped with advanced technology or operated with a remote key should consider acquiring this cover.

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 your lost keys, you can follow the steps below:

  • As soon as you know about the lost 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 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, invoice, etc.
  • After verification, the insurance provider reimburses your incurred expenses.

Key Replacement Cover: Terms & Conditions

Key Protection Car Insurance coverage is contingent upon specific terms and conditions. Please take note of the following:

A valid police First Information Report (FIR) is a requisite for claiming car insurance concerning key replacement. This document holds significant importance in the claims process.

Promptly inform the insurance company as soon as a claim situation arises.

Replacement for the car key, car lock, or the lockset is only applicable if they are of the same nature as the original.

The insurance company entertains Key Protect in car insurance solely for broken car keys. In instances of theft, the entire lock, set of keys, or lock will undergo replacement.

Types of Car Keys

There might be instances when the need arises to replace your car keys, whether due to breakage, or theft. Understanding the types of car keys you possess becomes advantageous when seeking repairs or replacements.

Basic/Traditional Car Key: This basic machine-cut key comes with minimal security features and can be easily duplicated by a locksmith.

Remote Car Key: Equipped with some security features, this key includes a transponder emitting radio waves or infrared signals for locking and unlocking the car. The replacement of car remote keys among all the different types of car keys tends to be costly due to the intricacies involved in reprogramming the security features.

Smart Car Keys or Keyless Frequency Operated Button (FOB): By utilising sensors, these keys allow the car to detect their proximity, automatically unlocking the door without requiring manual intervention.

Why Replacement of Keyless FOB/Remote Key is Expensive

The Keyless Frequency Operated Button (FOB) incorporates security elements essential for your car remote key. In the event of any sort of loss, or theft, it becomes imperative to procure a replacement.

The car remote key is equipped with a distinct computer-generated code programmed to align with the code embedded in your car's locking system. Beyond the fundamental lock/unlock functionality, the features can vary depending on the model and brand, subsequently influencing the replacement cost, which escalates with added features.

Consequently, the presence of more features results in higher costs for replacing or repairing keyless FOBs or remote keys. Opting for a Key Replacement Add-on becomes crucial in mitigating these elevated expenses, particularly since they pertain to the security aspects of your car.

Things to Remember

Before filing a claim for lost 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 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 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.

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.

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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.

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