Key & Lock Replacement Cover In Car Insurance

Updated On: 2023-04-20

Author : Team Policybachat

Key protection cover or Key replacement cover is an add-on in Car insurance policy provided by the insurance companies. In case of loss of key or damage to the lock the insurer will settle the claim amount up to the limit as specified in the policy copy. The sum insured for this add-on ranges from Rs. 50k to Rs.5 Lacs depending on the insurance company and the IDV of the car.

With the fast paced life and so many things to attend in our daily life, it is normal to forget few things. But this should not take a huge toll on your pocket. For example, if you misplace the keys of your small range car, replacement can be obtained with a few thousand bucks. But for the mid and high end cars you might end up burning a deep hole in your pocket.

The car key protection or car key replacement add-on can be purchased with online car insurance platform PolicyBachat after comparing the car insurance quotes from different insurers. How to calculate car insurance premium using the car insurance premium calculator and the best quotes can be selected by you depending on your preference.

What is Key & Lock Replacement Cover in Car Insurance?

The Key Replacement Cover is an add-on which provides coverage for the cost of replacement of the insured car’s key if the key is lost, damaged, or stolen. The lost key add-on also provides compensation for the cost incurred in repairing the lock-set if the car lock gets damaged.

The key replacement add-on is available for purchase with both a comprehensive car insurance policy and standalone own damage policy. With an additional premium, the Key Replacement Add-on will cover the cost arising out of the replacement of the insured vehicle’s key. This can be if the key is lost, damaged or stolen, or the cost to repair the lock-set if the lock or the key are damaged.


  • Easy available online form the insurance company.
  • Replacement of the car key/lock/lockset of the same kind and type in case it is lost, stolen or damaged.
  • Key replacement in case of theft or burglary and the lockset will be replaced in case of theft or damage.
  • Will not affect the policyholder’s eligibility for an NCB (No Claim Bonus) at the time of renewal.


  • Any claim where there are no valid receipts or invoices for the payments made.
  • Any damage or loss due to radiation or hazardous properties.
  • Any damage or loss covered under the manufacturer’s warranty.
  • Any damage or loss to keys/lock/lockset arising out of malicious activities or any deliberate or criminal act.
  • Any damage or loss to any part of the insured vehicle apart from the keys/lock/lockset and its associated parts such as ignition system, an immobilizer, and alarm or infra-red handset attached to the FOB.

What Does Lost Car Key Cover Include?

Car Key Cover or the Key Replacement Cover is an Add-on to the Comprehensive insurance policy. The insurance company will reimburse the insured, up to the insured amount specified in the insurance policy for the purpose of replacing the insured car’s key if the key is:

  • Lost
  • Stolen
  • Damaged
  • Repairing
  • Replacement only when key is damaged or broken.
  • In the case of burglary, the key, lock and lockset will be replaced.

Features of Key Protection Cover:

  • The insurance company should be intimated immediately no more than 30 days.
  • A FIR with the police needs to be filed to support the claim.
  • The key replacement will be for damaged or broken keys.
  • The replaced key/lock/lockset should be of the same kind and nature.
  • In case it’s stolen, the entire set of key, lock and lockset will be replaced.

What does Car key replacement cover include?

The car key replacement or car key protect cover is an add-on available in the comprehensive car insurance policy on payment of additional premium. The insurance company will settle the claim up to the specified amount as mentioned in the policy copy. Here is the list of things that are covered under the car key replacement add-on:

  • Lost / Stolen keys: It is sometimes unfortunate that the keys will be lost or stolen and this can lead to the theft of the car in some cases. In such scenarios the insurance company will reimburse the cost of replacing the lost or stolen keys. The cost of purchasing a new set of keys from the Car showroom / OEM will be borne by the insurance company up to the specified limit.
  • Break-in of the Car: Damage to the lock and keys of the car in case of attempted burglary will be covered under the key protect or key replacement cover. The cost incurred to replace the lock and keys will be reimbursed by the insurance company as specified in the policy schedule.
  • Damage to lockset: There is a chance that the lockset of the car may be damaged due to an accident and which results in the repair or replacement of the lockset. In this case the insurance company will reimburse the amount to repair or replace the damaged lockset.

Who should take Car key replacement cover?

  • If you are parking your car in the open, then there is high risk that the car might be stolen or an attempt might be done to steal the car. In this case having a key replacement can protect you from the cost incurred to replace the lockset of the car.
  • In case if you lose your keys or misplace your keys then the cost incurred for replacement could be quite high for mid and high range segment cars. Having key replacement or key protect cover could help you with the replacement amount.
  • Anyone purchasing a new technology car where the lock is operated with a remote key should have this add-on.

How to Claim Car Insurance for Key Protection?

In case you lose, misplace or damage your car keys, the add-on cover will reimburse the cost to replace or repair the key(s) lock/lockset. They are protected under the lost car key insurance, which is known as Key Protect Add-on. Follow the below steps to raise a claim for replacing/repairing your car keys:

  • Step 1: Call your insurance company and inform them about the loss of your car keys and mention how it was lost.
  • Step 2: In case the keys were stolen, you should file a First Information Report (FIR) at the local police station.
  • Step 3: Get your car keys either repaired or replaced and then raise a claim with the insurance company.
  • Step 4: Submit the required documents with your insurance provider. If the claim is within the terms and conditions, the insurer will reimburse up to the amount specified in your policy for replacing or repairing car keys.

How much is the Cost of Key Protection Cover in India?

For the most part, adding to the cost of Key replacement insurance is less expensive than incurring the cost to replace locks. Keyless FOBs and remote keys are a bit expensive to replace, but you can save money in the long run by buying car insurance with a comprehensive key replacement add-on cover. However, the amount that you would receive as compensation is dependent upon the maximum sum insured that you have chosen.

Types of Keys Where to Fix by? Price (in Rs.)
Traditional or Original Key Locksmith 100 to 300
Transponder key Locksmith 300 to 600
Key with FOB Locksmith 500 to 1000
Keys Attached to the FOBs Dealership 1000 to 1500
Smart Key Nearest Brand Dealership to Programmed a new fob 1500 to 3000

Types of Car Keys that are Available in India:

There are three basic types of car keys available, which include:

  • Traditional Car Keys: These keys are made of steel and are the most basic car keys. This type of car key has no special features and can be easily duplicated by the locksmith.
  • Remote Car Keys: Remote car keys come with a transponder through which you can lock or unlock the door of your car. This is the special security offered by this type of key. However, as compared to traditional keys, they are more expensive.
  • Smart Keys: Smart keys can be locked and unlocked without touching or any physical contact. As the name suggests, they are more high-tech than the normal keys. These are more expensive than the traditional and remote car keys.

Key Protect Cover for Private Car- 3 Years

What is Covered? What is Not Covered?
Key Replacement will reimburse you for the cost of replacing your insured vehicle keys which are Lost or Stolen Costs other than key replacement, and break-in protection are not covered
Break-in Protection will reimburse you for the cost of replacing your locks and keys if your insured vehicle is broken into. The covered cost includes the labor cost for replacing the lock. The cost to replace keys to vehicles that you do not own for personal use.
In the event of a security risk arising out of the incidence of lost keys of your insured vehicle, we will indemnify you for the cost of installing new locks in your vehicle. 1% of claim amount or INR 500 whichever is higher.

How to Buy Car Insurance for Key & Lock Replacement Cover Online?

Key protection cover can be purchased online from PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, 24*7 customer assistance team your motive is to give our customers right quotes with compare car insurance rates online.

  • Go to compare car insurance quotes online at
  • Fill in required details select your Car Model & Variant, RTO Location, Registration date, and Email address.
  • Click on the “START SAVING MONEY”.
  • Choose between a Third-Party Liability Only and a Standard Package (Comprehensive Insurance).
  • Premiums with different insurance companies are displayed with low premiums
  • Select required Add-ons/Riders and discounts, or you can Edit Policy Details as per your requirement
  • After that fill in the ‘vehicle owner details and personal details’.
  • Purchase best Car Insurance Policy using online payment
  • If any queries are raised call: 1800–123–4003.

Frequently Asked Questions:

What is the Premium that is given by the Car Insurance Policy?

The premiums charged by the insurance companies for the car key protect cover or key replacement add-on is nominal. It could be around 5% of the total premium but the coverage would range from Rs.50k to Rs.5lacs depending on the model of the car.

What is the Difference between Manual Car Keys v/s Automatic Car Keys?

Till 2000s there were manual keys for cars and also the process of replacing the lost was quite simple. Any experienced locksmith could create a duplicate key if you misplace the original key due to any reason. This duplicate key wouldn’t cost more than Rs.1000.

Since the cost of replacing manual keys was very much affordable, car owners never paid heed to purchase key protection cover. But with the entry of high end car locking systems this scenario has been completely changed.

The rapid growth in technology has led to the introduction of high end automatic car key to prevent the vehicle from getting stolen. These keys are a bit costly compared to the manual ones. Mostly Frequency Operated Button (FOB) keys or Remote controlled keys are available in the market and replacing these could be a cumbersome process if done locally.

Why is car key insurance important?

Luxury cars are expensive and to ensure their protection, the car key has become technologically advanced as well. Some manufacturers have created a keyless or remote-controlled type of car keys, but they can be quite expensive. Hence, a replacement or even to repair them, it is expensive and requires a specialized mechanic to fix it. To avoid any financial liabilities arising out of the loss/damage of these types of keys, the car key insurance is practical and helps you while replacing or repairing it.


It's not easy to come up with an economical solution when you lose your car keys. But these methods typically won't work if you own a mid or high-end car. So, it's a good idea to invest in key replacement covers and basic solutions. For best online car insurance add-on’s/ riders please visit Our Portal and check for the best car insurance companies by comparing car quotes.

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