Key Replacement Cover: All You Need to Know!

Do you know that you can cover your car keys under a car insurance policy? Yes, it’s true! Read on to know what Key Replacement Cover is and how you can avail it!

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What is Key Replacement Cover?

Losing a key was not a big deal a few years back. The spare car keys used to play a big role then. But with the advancement in technology, modern electronic keys (FOBs) are introduced, which are more expensive to replace as compared to the traditional ones. This assuredly indicates a considerable chunk of out-of-pocket expenses.

What if your car insurance policy comes to your rescue?

Yes, insurance companies compensate for the loss of keys under Key Replacement Cover. It is an add-on insurance cover, which can be availed at an additional premium.

Importance of Key Replacement Add-on

A key replacement car insurance cover comes in handy if you misplace your original car keys. The policy ensures the reimbursement of the key replacement costs. By just paying a minimal amount annually, you can be protected against expensive car keys replacement costs.

This cover can be bought along with the basic comprehensive car insurance. This policy comes into action if the car key is misplaced, lost, damaged or stolen. The policy also covers the repair costs of lock-set in case it is damaged. Nevertheless, an upper limit is applicable as per the term and conditions of the insurance company.

Key Replacement Car Insurance Cover: Features & Benefits

By claiming a key replacement cover, you can get those expenses reimbursed, which are incurred for repairing or replacing a new car key. This policy comes with some amazing features and benefits:

  • Majorly, a key protection policy offers coverage for replacement or stolen keys. Also, it covers the repair or replacement expenses of key lockset.
  • Since it can be availed as an add-on, an additional premium is attached. Hence, it is recommended to ask the insurer the exact amount to be paid to avail of this cover.
  • This policy comes with an upper limit on how may time the policy can be claimed. So, you’ll have to be very careful about your car keys. As the policy will compensate up to the permissible number of times you can claim.
  • The claim process is quite similar to the normal car insurance claim that starts from intimating the insurer to final settlement.

Key Replacement Cover: Terms & Conditions

Key protection car insurance cover is subject to certain terms and conditions. Let us know:

  • A police FIR is required to claim car insurance for key replacement. It is one of the important claim documents.
  • You should inform the insurance company immediately as and when a claim arises.
  • The replaced car key, lock or lockset should be of the same nature.
  • The insurance company considers replacement only for damaged or broken car keys. In case of theft, the entire, lock, set of keys or lock will be changed.

Scope of Coverage under Car Key Replacement Add-on

Consider the below-listed things covered under car insurance with key replacement cover:

  • Lost Keys: Losing car keys is unfortunate. It can add to additional out-of-pocket expenses. In such a case, key replacement cover comes in handy where the insurance company reimburses the incurred expenses. The cost of buying new set of keys from the showroom is paid by the insurance company up to the specified limit.
  • Break-in of the CarThis policy also covers attempted burglary where any damage to lock and keys will be covered. The expenses incurred for replacing the lock & key will be compensated by your insurance company.
  • Coverage for Lock set: In case of an accident the chances of the car lockset getting damaged is high. In such a case, you can claim the insurance asking for reimbursement of the incurred amount for repair or replace the lockset.

Who Should Buy Key Replacement Car Insurance in India?

When anyone can buy this cover as per the requirement, however, this cover is mostly recommended if:

  • You park your car in an open area, where the chances of theft or attempt to theft are high. This will help you cover the repair or replacement expenses in case the lockset or key is stolen/damaged.
  • Replacing or repairing a car key will be expensive if you own a high-end car. Even the costs will be at the higher side in case of mid-range cars. Key protection cover comes in handy here by covering the replacement amount.
  • Anyone with a car where the lock is being operated with a remote key or if the car is with advanced technology should consider buying this cover.

Key Replacement Cover Premium

As it is an add-on cover, the premium asked by the insurance companies is minimal. It could range somewhere between 5%-8% of the total car insurance premium. However, depending on the model of the car or the insurance provider, key replacement car insurance premiums may vary.

Key Replacement Cover: How to Claim?

A claim may arise if you loss or misplace your car keys. The claim process is hassle-free if proper claim steps are followed. Here you go:

  • Inform the insurance company. Register your claim by calling them or writing an email.
  • In case of theft, a Police FIR is necessary to register the claim.
  • You can get your car keys replaced or repaired. Now, raise a claim asking for compensation.
  • Submit the claim form along with the required documents. The insurance company will verify the same and settle it by reimbursing the expenses.
  • In case of a cashless claim, the settlement is done directly with the garage by the insurance company.

It’s Your Turn Now!

Gone are the days when economical ways were being used to get a solution for lost car keys. Sadly, these are of no use if you own a mid or high-range car with an advanced model. So, it is wise to opt for a key replacement cover, along with the basic car insurance policy.

Written By: PolicyBazaar - Updated: 06 September 2021
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