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Can I insure my Car Key? If YES, what is the best policy

Meet Sunita. She works at a multinational software firm and earns a decent amount every month. Since she owns a car, she has covered it with a high-value comprehensive four-wheeler insurance policy from a top insurer. 

One day, Sunita decides to take her family on a vacation to an exotic destination 200 kilometres away from her house. But unfortunately, when she was 100 kilometres away from her home, she lost the car key. She was stranded in the middle of a village with no one in the vicinity to help her out. 

She frantically called the showroom from where she purchased the car, but they offered little help. Instead, the showroom staff asked her to bring the car to the service station and change the programmable keyless entry FOB (Frequency Operated Button). She also called her insurer to find whether her car insurance policy covers the key replacement. But to her dismay, she discovered that her motor insurance policy does not cover key replacement. 

Hence, not only did this fateful incident ruin Sunita’s family getaway, but it also increased her expenses. 

Have you ever thought about what would happen if you were in Sunita’s position?

Fortunately, you are more informed than Sunita and are never going to make the mistake she did.

A simple, low-cost car key insurance add-on is all you need to save yourself and your family from hazardous situations like the one mentioned above. But, what is car key insurance, and which insurer offers the best policy? Let’s find out.

What Is Car Key Insurance?

car key insurance is much like a car insurance policy, except it only insures your car key.

Modern-day cars are technologically more advanced than yesteryears. Earlier, you could quickly call a locksmith and prepare a duplicate key. But nowadays, cars use programmable keys, meaning if you ever lose the key, you will have no other option but to reprogram the key. And, car manufacturers charge a considerable amount to prepare a new key for your car. For example, the cost of a key replacement for the top-notch Toyota Fortuner can go up to INR 1 lakh.

Moreover, if a car gets stolen and the owner does not possess the key, the insurer may reject their insurance claim. 

Hence, if you have or are planning to buy a car with a technologically advanced locking system, you must consider car key insurance add-on alongside the four-wheeler insurance policy

How Can You Avail Car Key Insurance?

Since car key insurance has become the need of the hour, you might wonder where you can buy one. Fortunately, you do not have to burn the midnight oil to find an answer to this. 

Many Indian insurers provide the ‘car key and lock replacement insurance’ as an add-on to a four-wheeler insurance policy. And, the cost of the car key insurance add-on is much less than the cost of key replacement. If you lose an encrypted or computer-coded key, the key replacement bill can move anywhere between INR 10,000 and 1 lakh. You may also need to pay the GST (Goods and Services Tax), further inflating the figure.  

Hence, car key insurance can protect you from the sky-high bill of key replacement and provide you with complete peace of mind. 

At this point, you must be willing to know the cost of a car key insurance add-on. The following section discusses this.  

What Is the Cost of Car Key Insurance?

The cost of car key insurance depends on a few factors like the car price, its age, existing motor insurance policy‘s duration, and add-on policy duration. 

The car price plays a vital role in determining the car key insurance cost. For example, the cost of car key insurance is often the lowest for cars in the Hatchback segment, followed by Sedan. In contrast, if you own a luxury car, you may have to shell out something extra since luxury cars have an ultra-modern security system, and replacing the key usually costs much more than standard cars. 

The age of the car is another factor that affects both motor and car key insurance policies. Since an old car is more likely to get damaged, insurers add a surcharge to the standard rates to compute the cost of car key insurance.

The motor and add-on policy duration also influences car key insurance price. Generally, a long-term policy, such as three years, costs higher than a one-year motor insurance policy. Similarly, the cost will be the highest if you opt for a three-year car key insurance policy. However, a long-term policy is often more cost-efficient than short-term policies since insurers typically offer fantastic discounts on an extended-duration motor insurance policy.  

A quick look at the rates available on the internet suggests that a car key and lock replacement insurance add-on may cost anywhere between INR 300 and 800 every year for a car in the Hatchback or Sedan segment. 

What Are the Features of Car Key Insurance?

Despite being an add-on policy, car key insurance is loaded with features. The following are a few:

  • It reimburses the cost of a key replacement due to normal wear and tear or on losing it. Car key insurance offers substantial savings over workshop bills. 
  • Since this is an add-on policy, the cost is much less than a comprehensive four-wheeler insurance policy
  • You can buy the policy online or offline. Wise buyers mostly prefer the online mode for getting fascinating discounts. 
  • Usually, insurers cap the number of times you can claim the insurance amount. It is always prudent to check the policy terms to know the exact number.
  • The claim process is similar to any standard motor insurance policy claim process. You need to intimate the insurer soon after discovering the loss. Then, you have to submit all documents asked by the insurer to facilitate a smooth claim resolution.

Act Before It Is Too Late!

Now that you know the benefits of car key insurance, it is time to supplement your car insurance policy with car key insuranceIIFL Insurance can be your trusted partner in your journey to find the best insurer offering car key insurance. A top-class insurance policy not only protects your pocket from unwarranted expenses but also provides optimal peace of mind. 

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