Is Car Key Insurance Worth It
Whether car key insurance is worth it depends on four figures, the premium, the claim limit, the excess and the cost of a replacement key for the car, and on whether an existing policy already covers the keys.
Inta-Lock Car Key Guides. Updated October 2026.
Key cover is sold as an add on to a motor policy or as a policy of its own. What it pays is set by its wording, which names the events covered, the keys counted, the limit, the excess and the exclusions. A claim on a motor policy and a claim on separate key cover do not treat the no claims discount in the same way, and the policy document states which applies.
The Financial Conduct Authority publishes claims frequency and claims acceptance figures for general insurance products, add on products among them. The cost a policy is set against is the cost of a replacement key, which moves with the key type and with whether a working key still exists. This guide sets out those facts and makes no recommendation to buy or to decline a policy.
What Is Car Key Insurance?
Car key insurance is an insurance contract that pays towards replacing the keys of a car after an event named in the policy, and it is sold as an add on to a motor policy or as a separate policy.
The names key cover, key protection and key care describe the same product. The Financial Conduct Authority lists key cover among the add on products sold with motor insurance, which means it is bought beside the main policy and carries its own premium, its own limit and its own terms.
A key policy pays money or arranges work. It does not cut or programme a key itself. The key is still made by a locksmith or a dealer, and the policy wording states who arranges that work and what the insurer pays towards it.
Does Standard Car Insurance Cover Lost Keys?
Standard car insurance covers lost keys only where the policy wording names keys, because none of the three levels of motor cover is defined by the loss of a key.
The Association of British Insurers describes three levels of motor cover. Third party is the minimum required by law in the UK. Third party fire and theft adds protection where the vehicle is damaged, stolen or destroyed in a fire. Comprehensive cover adds accidental damage, medical expenses and damage to or theft of the contents of the vehicle. Keys are not named in that description of motor insurance cover levels.
The policy booklet settles the point for each policy. A key section inside the main policy and a key cover add on beside it are two different things, and each has its own excess and its own effect on the no claims discount.
Which Policy Terms Decide What a Key Claim Pays?
Seven policy terms decide what a key claim pays, and each one is found in the policy document before the cover is bought.
| Policy term | What the term sets | How it moves the value of the cover |
|---|---|---|
| Events covered | Whether loss, theft, damage and keys locked inside the car each count as an insured event | A policy that names theft alone pays nothing for a key that is lost |
| Claim limit | The largest sum paid for one claim and for one policy year | A limit below the cost of a replacement key for the car leaves the difference with the owner |
| Excess | The part of each claim the policyholder pays | An excess close to the cost of the key leaves little or nothing to claim |
| No claims discount | Whether a key claim is recorded against the motor policy | A recorded claim affects the premium at renewal, which adds to the true cost of claiming |
| Keys counted | Which keys are covered and how many keys one claim replaces | A claim that replaces one key leaves a car that had two keys with no spare |
| Claim conditions | The evidence asked for, the period for reporting and who arranges the work | A condition that is not met is a ground for a claim to be refused |
| Exclusions | The situations the cover leaves out, such as keys left in or around the vehicle | An exclusion removes the cover in the exact situation it describes |
The table lists what to read, not what a given policy says. Each insurer writes its own wording, and the policy document is the only place the seven answers for one key cover policy are found.
A key is lost, stolen or broken in Leicester or Leicestershire, with or without key cover? Matt cuts and programmes the replacement key at the vehicle.
Call Matt on 0116 442 2084How Often Is a Key Cover Claim Made?
How often an insurance claim is made is measured by claims frequency, a figure the Financial Conduct Authority collects from insurers and publishes in its general insurance value measures data.
Claims frequency is the number of claims registered divided by the average number of policies in force. The general insurance value measures data for 2025 reports claims frequency, claims acceptance rates, average claims payouts and claims complaints as a proportion of claims. The data covers January to December 2025 and was published on 21 July 2026. The figures for each product, add on products among them, are held in the spreadsheet on that page, and no key cover figure is printed in this guide.
The regulator attaches a limit to those figures. It states that the data is not intended to help consumers choose insurance products directly, and that the data is historical and does not always reflect the products and prices available today. The figures describe the market as a whole, not one policy and not one driver.
A consultation paper from the same regulator, dated January 2019, records an earlier finding by the Competition and Markets Authority of low claims ratios for key cover among motor add on products. A claims ratio is the share of premiums paid back out in claims.
Does a Key Claim Affect the No Claims Discount?
A key claim affects the no claims discount where it is recorded as a fault claim on the motor policy, and the policy wording states how any reduction is applied.
The Financial Ombudsman Service sets out how a no claims bonus works. One year is awarded for each year of driving without a claim. A fault claim normally reduces the bonus by two years. An extra year is added only where no claim of any kind is made in the policy year.
A protected no claims bonus keeps the number of years unchanged after a fault claim. The same source states that the price is not protected, so the premium can still rise at renewal.
Key cover held as a separate add on has its own terms. Its wording states whether a key claim is recorded against the motor policy or kept apart from it, and that one sentence decides the renewal effect of the claim.
Why Is a Claim Involving Car Keys Refused?
A claim involving car keys is refused where an exclusion in the policy applies or where a condition of the policy is not met.
- Keys left in or around the vehicle. A motor policy can contain an exclusion clause that removes cover where the keys are left in or around the vehicle. The Financial Ombudsman Service names this clause in its guidance on theft claims.
- Reasonable care. Most motor insurance policies carry a term that the policyholder takes reasonable care to protect the vehicle from loss or damage. A car left unlocked is the kind of fact an insurer raises under that term.
- Keys not accounted for. After a theft the ombudsman looks at whether the insurer was given all the keys for the vehicle and, where it was not, the reason. A record of how many keys the car has is part of that answer.
The ombudsman guidance on vehicle theft complaints also states that no sign of a forced entry does not always mean a key was left in the vehicle. A copied key, a key taken through a letter box and keyless entry are the examples it gives.
What Decides the Key Cost a Policy Is Set Against?
Four factors decide the cost of a replacement key that a policy is set against, the key type, the keys still held, the vehicle and the security work that follows a theft.
- The key type. A plain blade key carries the least work. A transponder key, a remote key and a keyless key each add electronics that are programmed to the vehicle, and each step raises the cost.
- The keys still held. A key copied while one key still works is a smaller job than a key made after every key is lost. No working key raises the cost.
- The vehicle. The make, the model and the year set the key system and the equipment the job takes. A newer or more secure key system raises the cost.
- The security work. After a theft, missing electronic keys are removed from the immobiliser memory where the vehicle supports it. A mechanical blade still turns a physical lock unless that lock is changed or rekeyed, and each added piece of work raises the cost.
No price list is published and a quote is agreed before work begins, so the figure for one car is known before any key is made. The second factor is the one an owner controls, and spare car keys in Leicester are made while one key still works.
What Else Bears on the Key Cover Decision?
Four situations sit beside the decision on key cover, and each one leads to a different page or a different rule.
How Does a Key Insurance Claim Differ From Replacing a Key Directly?
A key insurance claim settles who pays for a key, while replacing a key directly settles who makes it. The claim runs through the insurer and follows the policy wording on who arranges the work, what evidence is kept and what excess is paid.
Replacing a key directly runs through one call. A quote is agreed before work begins, identity and authority to request the work are checked, and the key is cut and programmed at the vehicle. That work is set out on the page for replacement car keys, and the same work takes place whether or not a policy pays for it afterwards.
Which Figure Is a Key Policy Measured Against?
A claim limit and an excess mean little without the cost of the key they are set against. The factors behind that cost, by key type and by make, are covered in the guide to what sets the cost of a replacement key.
What If Keys Are Lost With No Cover?
A car with no key cover and no key is the opposite situation. The key is paid for directly, and the order of the first actions matters more than the policy. The steps are set out under what to do when car keys are lost.
Was Key Cover Added Without Being Chosen?
Key cover is an add on, and an add on is chosen by the buyer. The Financial Conduct Authority introduced rules that ban opt out selling of add on products, so an add on is not sold through a box that arrives already ticked.
A renewal notice or a policy schedule lists each add on and its premium on its own line. Key cover that appears there shows what is paid for it each year.
The cost of a replacement key for your car is quoted before work begins, and the phone is answered 24 hours a day.
Frequently Asked Questions
Is key cover included in comprehensive car insurance?
Key cover is included in a comprehensive policy only where the policy wording says so, and the description of comprehensive cover given by the Association of British Insurers does not name keys.
The policy schedule lists key cover as its own line where it was bought as an add on.
Does car key insurance cover lost keys as well as stolen keys?
Car key insurance covers lost keys only where loss is named as an insured event in the policy wording.
Loss, theft and damage are three separate events. A wording that names theft alone pays nothing for a key that is lost.
Does a key cover claim reduce a no claims bonus?
A key cover claim reduces a no claims bonus only where it is recorded as a fault claim on the motor policy.
The policy wording states whether a claim on the add on is kept apart from the motor policy. A fault claim normally reduces the bonus by two years.
How much does car key insurance cost?
The premium for car key insurance is set by each insurer and is shown on the quote, the renewal notice or the policy schedule.
No premium figure is printed here. The premium is one of four figures, beside the claim limit, the excess and the cost of a replacement key for the car.
Does key insurance pay a locksmith chosen by the owner?
Key insurance pays a locksmith chosen by the owner only where the policy wording allows the owner to arrange the work and claim the cost back.
The claim conditions in the policy document state who arranges the work and what evidence is kept. A condition that is not met is a ground for the insurer to refuse the claim.
Who looks at a complaint about a refused key claim?
The Financial Ombudsman Service looks at complaints about motor insurance, including complaints about claims for vehicle theft.
It checks whether the decision of the insurer was in line with the policy terms and conditions.