Does Car Insurance Cover Lost Keys?
Usually not as standard. Only around 13% of comprehensive car insurance policies include key cover, so most drivers need to add it as a paid extra.
Key cover is an add-on to your comprehensive policy that costs £20 to £50 per year. It covers the cost of replacing lost, stolen, or damaged keys, plus locksmith fees and onward travel.
Modern car keys with transponder chips and keyless entry systems cost £150 to £400 to replace. Add locksmith call-out fees and potential towing, and the total bill can reach £500 to £800.
Usually not as standard — key cover is a paid add-on on most comprehensive policies, at £20 to £50 a year. Whether it earns its place comes down to your car: a basic transponder key is an irritation, but a modern remote or a luxury-brand key can run into the hundreds or worse, and that is before locksmith and recovery costs.
Compare comprehensive car insurance and check whether key cover is included.
How much does it cost to replace car keys?
Checkatrade quotes an average of £160 plus VAT for a standard transponder key and £320 plus VAT for a remote key. Luxury vehicle keys cost considerably more.
What are the costs by key type?
| Key type | Replacement cost | Notes |
| Basic metal key (no electronics) | £30-£80 | Older vehicles only, cut by any locksmith |
| Transponder key (chip inside) | £150-£300 | Most common modern key, needs programming |
| Remote key with central locking | £200-£400 | Includes buttons for locking and boot |
| Keyless entry / proximity fob | £250-£500 | Push-button start vehicles |
| Luxury vehicle key (BMW, Mercedes, Audi) | £400-£1,000+ | Some brands require dealer-only programming |
What about additional costs?
A locksmith call-out costs £80 to £200, rising further outside business hours. If your car cannot be opened or started, towing to a dealer costs £100 to £200.
If keys are stolen rather than lost, you may also need the locks changed for security. Lock replacement costs £100 to £300 on top of the key itself.
What does key cover include?
Key cover add-ons typically provide £1,000 to £1,500 of cover for replacement keys, locksmith fees, lock changes, and onward travel costs if you are stranded.
What is covered and what is not?
Most policies cover keys that are lost, stolen, damaged, or locked inside the vehicle. Some also cover house keys and work keys on the same policy.
Common exclusions include wear and tear, keys left in an unlocked vehicle, and duplicate key cutting when no loss has occurred. Always check whether your policy covers loss as well as theft, because some basic policies only cover stolen keys.
How does key cover differ from standard insurance?
Standard comprehensive insurance covers accidental damage, theft, fire, and third-party liability. It does not typically cover replacement keys unless key cover is specifically included.
Where key cover is included as standard, limits are usually low at around £300. Dedicated add-ons offer higher limits and cover a wider range of situations.
Is key cover worth the cost?
For drivers with modern cars where keys cost £200 or more to replace, key cover at £20 to £50 per year is usually good value.
How do you decide?
Compare the replacement cost of your key against two to three years of add-on premiums. If a single replacement costs more than three years of cover, the add-on pays for itself the first time you use it.
Factor in locksmith and towing fees too. Our car insurance costs guide explains how add-ons affect your overall premium.
How do key cover claims usually go?
Key cover claims are generally straightforward to settle because the loss is easy to evidence and the sums are modest.
Only a small minority of policyholders claim in any given year, so most people never use the cover. For those who do, a single payout comfortably exceeds several years of premiums.
What should you do if you lose your keys?
Check for a spare key at home before paying for a replacement. If no spare is available, contact your insurer to check whether key cover is included in your policy.
What are the steps?
Call your insurer with your policy number and vehicle details. If you have key cover, they will arrange a locksmith or direct you to an approved provider.
If you do not have cover, get quotes from at least two independent auto locksmiths before going to a dealer. Dealers charge more but are sometimes the only option for luxury vehicles that require brand-specific programming.
What documents will the locksmith need?
Your driving licence, the V5C registration document, and the vehicle identification number. These prove you own the vehicle and allow the locksmith to programme a new key.
If your keys were stolen, report the theft to the police and get a crime reference number. Your insurer will need this before processing the claim.
What if you are stranded away from home?
Key cover add-ons often include onward travel costs if you are stranded. This covers a taxi home, a hire car, or overnight accommodation while your replacement key is arranged.
If you have breakdown cover, check whether it includes vehicle access. Some policies will get a locksmith to open your car, though they will not pay for the key replacement itself.
Does losing your keys affect your insurance?
A key cover claim does not usually affect your no-claims discount. Most insurers treat key claims separately from standard motor claims.
Will your premium increase?
No, in most cases. Key cover claims are ring-fenced from your main policy.
Our tips to lower your premium explain how different claim types affect renewal costs.
If your keys are stolen and used to take the vehicle, that becomes a theft claim on your main policy. This would affect your policy excess and no-claims discount.
How can you avoid losing your car keys?
Keep a spare key stored securely at home. This is the simplest and cheapest protection against the cost and inconvenience of a lost key.
What practical steps help?
Use a dedicated key hook or tray near your front door. Establishing a fixed routine for where you put your keys eliminates the most common cause of losing them.
Consider a Bluetooth key tracker such as an Apple AirTag or Tile. These cost £25 to £35 and let you locate your keys from your phone.
Store keys away from doors and windows. Keyless entry systems are vulnerable to relay attacks, where thieves amplify the signal from a fob sitting near the front door.
Frequently Asked Questions (FAQs)
Usually not. Only about 13% of comprehensive policies include key cover as standard, so most drivers need to add it as a paid extra costing £20 to £50 per year.
A transponder key costs £150 to £300 and a keyless entry fob costs £250 to £500. Add locksmith call-out fees of £80 to £200 for the total replacement cost.
Yes, most key cover policies cover both theft and loss. Some basic policies only cover theft, so check your policy wording carefully before assuming loss is included.
No, in most cases. Key cover claims are treated separately from standard motor claims and do not affect your NCD or renewal premium.
It depends on your car. If a replacement key and locksmith would cost £200 or more, an add-on at £20 to £50 a year pays for itself the first time you use it.
Dealers have the correct programming equipment for all key types but charge more. Independent locksmiths are cheaper for standard transponder keys but may not handle luxury brands.