Car key insurance – worth doing or not?

car key vector croppedAccording to Lloyds TSB insurers, one in twenty motorists have their car keys stolen. Add the number of people losing or damaging their car keys to that figure and it’s bound to increase substantially. So is it worth considering car key insurance and if you do, what should you be looking for?

Modern car keys use the latest technology and like all things technical, replacements can be expensive. If you use a main dealer for your replacement car keys, you can expect to pay 60% more than using LMI’s specialist automotive locksmith service.

Some motor insurance policies include car key cover, so be sure to check your policy small print before forking out for separate cover.

If you opt for car key insurance, it’s important to cover your spare car keys too. If you have a transponder system, your spare keys won’t work and they will need to be recoded too.

If you’re considering car key insurance, there are some things it will pay to consider:

  • The policy excess: There’s little point in paying for an insurance policy if the excess is more than the cost of replacing your keys!
  • Call out charges: Are you covered for the cost of the emergency call-out if you get stranded and the car locksmith has to come to you?
  • Lost and stolen keys: Does the insurance cover you for lost keys as well as stolen ones? And will the insurance cover you for keys lost at home?


  • Timescale: How long will the insurance company expect you to wait before deciding your keys are actually lost, not just mislaid. Some policies will build-in a delay of several days in case your keys turn up.


  • Policy limit: Some car key insurance policies have a limit on the amount they will pay out. Check this to make sure it will cover the cost of any replacement keys.

Like any insurance, you need to shop around, get quotes and read the small print carefully before buying car key insurance. On the other hand, you could just take extra care and save on both replacement keys and insurance premiums. But whether you have car key insurance or not, don’t forget to keep my phone number (07798 557 188) stored in your phone. It really could happen to you.