Does Auto Insurance Cover Lost Keys?

Whether it’s a traditional car key, or a smart key fob, there’s always a high chance that you might end up losing it. It can either get lost or stolen. A car key is the most essential part of your vehicle, without it you cannot unlock your car let alone start the engine.

So, if you lose your car keys, will your car insurance cover it? If not, do you need to pay out of pocket to get a new key? Or are there special types of insurance coverage for car keys?  In this article you will learn what type of insurance covers lost or stolen car keys, what you should do in different scenarios, and how to prevent this type of situation in the future.

Does Auto Insurance Cover Both Lost and Stolen Keys?

Unfortunately, auto insurance does not cover lost keys as the key itself is categorized as personal property not a part of the car. However, stolen keys on the other hand are covered by comprehensive auto insurance as this coverage is designed to compensate any financial loss due to theft of car, and any of its parts including the car key.

So, auto insurance typically covers stolen car keys, but it won’t cover a lost car key. If you accidentally lose a car key, you will have to make another one out of your own pocket.

What Type of Auto Insurance Covers Lost and Stolen Keys?

There are two types of auto insurance that cover lost and stolen car keys. Here’s the catch though, these auto insurance coverages will only apply if you’ve lost the car keys due to theft.

Here’s a detailed breakdown of the two types of auto insurance that covers lost and stolen keys.

Comprehensive Auto Insurance

Apparently, comprehensive auto insurance is the only coverage option that directly pays the cost of creating a new key in case your original car key got stolen. Comprehensive auto insurance typically covers car theft, so it also covers stolen car keys.

Typically, it’s difficult to steal a car without its key, as the car key is required to start the car. According to the NICB, about 209 vehicles are stolen daily due to the car key or key fob being left inside the car.

Since the year 2015, there has been a 56% increase in the number of stolen cars with the car keys inside the car. Based on the NICB report, more cars are being stolen in this manner, so you shouldn’t keep your car keys inside the car, as it makes it easier for thieves to steal your car.

And to stay on the safe side, it’s always best to get comprehensive auto insurance as it financially protects your car, and its keys against theft. Apart from that comprehensive auto insurance also covers vandalism, natural disasters, fire outbreaks and other accidental damages that are beyond your control.

Roadside Assistance Insurance

The moment you lose your car key, whether it’s stolen, or you have somehow lost it, you won’t be able to start your car. It can get even more stressful if you’ve lost your car keys while you’re on a tour or traveling somewhere far.

In this case, roadside assistance insurance can help. The moment you claim your roadside assistance insurance, and call for roadside assistance, a mechanic or locksmith will arrive at your current location and apply steps to unlock your car.

But if you need to make a new key, you will have to pay for that out of your own pocket, as roadside assistance insurance does not cover the cost of replacing or making a new car key.

Should Alternative Types of Insurance Be Considered?

Losing a car key or fob can be very stressful, it adds increased vulnerability of your car getting stolen. Most of all, it deprives you of the right to unlock and drive your own car.

If you need to get a home insurance policy, then you should consider adding personal property coverage to the home insurance policy. On the other hand, if you’re renting a property you will need to get the renter’s insurance coverage.

The advantage is both personal property coverage under home insurance policy, and renter’s insurance coverage applies for lost and stolen car keys, as car keys are considered personal property itself.

So, if you need to get home or renter’s insurance then it’s definitely worth considering either of these two types of insurance to cover your car key.

If you want to keep your car key covered with insurance, you will need to purchase a few different insurance coverages consisting of auto, rental and home insurance.

If you’re looking for a reliable car insurance agency in Michigan providing various insurance solutions at a cheap and affordable consider checking our policies. We even have regional offices in Flint MI, Saginaw MI, and Mt Pleasant MI for in-person visits and consultations.

What to do if the Keys are Locked in the Car?

If you have accidentally locked your car with the key inside, you should call a locksmith to unlock the car. If you have roadside assistance coverage, then you claim that, and your insurer will send a locksmith to unlock your car.

However, if that’s not an option, and if you’re unable to reach a locksmith, and you need to get the car key out immediately, then you will have to break your car’s window, and unlock the car by flipping the car switch by sliding your arm inside the car.

Here’s a disclaimer, if you must break your car’s window to get the car key out, your car insurance won’t cover the cost of repairing your window as it wasn’t accidental damage.

So, if it’s possible, it’s best to wait for a locksmith or mechanic to arrive at the scene to unlock the car. However, if that’s not an option, then you may have to consider breaking your car window to get the key out.

How to Replace Lost or Stolen Car Keys?

Whether you have lost your car key, or it has been stolen, you need to get it replaced. The most convenient option would be to call a locksmith to create a new car key. If you’re using a key fob, or a smart key then your locksmith has to program and code a new car key.

Apart from calling a locksmith, if you want more professional help and advanced support then you can visit your dealership, and ask them to create, and program a new car key. As dealerships tend to use more advanced and secure technology it will cost you a relatively higher amount to create a new key at the dealership.

Regardless, if you want your insurance to cover the cost of replacing your car key and making a new one then you can claim comprehensive auto insurance if your car key got stolen. But if you have lost it then you will have to claim your personal property coverage under home insurance or rental coverage insurance.

Cost of Replacing Traditional Keys vs Smart Keys

The cost of replacing your car key will significantly vary depending on the type of key that you will have to make. While older cars have the traditional mechanical key, modern cars have key fobs or smart keys which needs to be programmed.

So, the cost of replacing traditional keys vs smart keys significantly varies as follows.

• Mechanical Key: Depending on the make and model of your car, and the type of material used to make the mechanical key, it can cost you as little as $10 to something around $100 to create a new mechanical car key.
• Regular Key Fob: A regular key fob is a combination of both traditional key structure and smart features to unlock and turn off the alarm by pressing the button. Replacing a regular key fob can cost you from $50 to $500 depending on the quality of the fob, and expertise required to program it.
• Smart Key Fob: Smart key fobs don’t have the traditional metallic key structure, rather it’s simply a key fob with buttons to remotely lock, unlock, and start your car’s engine. The replacement cost of a smart key fob can range from $220 to $500 or more depending on your car’s make and model.
• Transponder Key: The transponder key has an integrated microchip for enhanced security. The chip emits a signal to the car which allows you to lock or unlock the vehicle and start the car’s engine. It can cost you $250 or more to replace a transponder key depending on the make and model of your car.

How to Prevent Losing Your Car Keys?

Your car key is one of your most important accessories, so it’s worth taking a few steps to ensure that it doesn’t get lost. Here are three effective tips to help you avoid losing your car key.

• Use a key ring: Key rings are bigger objects, and come in various unique designs, so it will be easier for you to keep, and locate it which can reduce the chances of losing it.
• Keep your car keys in a specific spot: Make it a habit to keep your car key in a specific spot, hook or container. In that way, you will know exactly where the key is, and the odds of losing it are significantly lower.
• Use a Key Tracker: You can use a portable key tracker which you can attach to your key ring, such an Air Tag or Smart Tag. With these devices you can remotely track your car key’s location on your phone or computer.

Final Thoughts: Is Auto Insurance Necessary for Lost Keys?

Even though the cost of replacing your car key will roughly mount up to a few hundred dollars, it is still essential to keep it under insurance coverage. By default, comprehensive auto insurance covers your car key if it gets stolen.

If you have personal property coverage under home insurance or renter’s insurance coverage, then your car keys will get covered as well. Typically, these insurance coverages protect you financially from a multitude of accidental damages. So, if it additionally covers your car key that’s an added benefit.
You should also consider having roadside assistance coverage as it can help you get your car unlocked when you accidentally lose your car key.

If you need help to determine which insurance policy will be the best fit to cover your car key, you can contact us to get a free consultation. And then, if you’re interested in purchasing any of our insurance solutions, you will also get a free quote.

FAQs

Does my insurance cover lost keys?

It depends on what type of insurance coverage you have. Typically, auto insurance policies don’t cover lost keys as they are viewed as the policyholder’s personal property. So, if you want insurance coverage on lost car keys, then you should get personal property coverage under home insurance or renter’s insurance coverage.  

Does auto insurance cover theft of car keys?

Yes, comprehensive auto insurance covers theft of car keys, as this coverage has been specifically designed to cover theft. So, if your car key has been stolen, you can claim your comprehensive auto insurance to pay for its replacement.

Does roadside assistance cover lost keys?

Roadside assistance does not cover the replacement cost of lost keys, but if your car is locked, and if you need a locksmith to unlock it, roadside assistance will cover the service charge required to unlock your car.