Automotive Locksmith Melbourne Blog

Do insurance companies cover lost car keys? An auto locksmith reveals all

Sales Galmier - Thursday, February 22, 2018


There’s no better way to absolutely ruin your day than to lose your car keys.

  • The pit in your stomach as you realise your keys aren’t in their usual spot
  • The frantic search around your house
  • The dawning realisation that you are officially stranded…

Talk about a major headache!

Thankfully, your local auto locksmith can get you back on the road.

A locksmithing expert like Galmier Locksmiths will come to you and cut you a new key on the spot or unlock your car for you. And you all live happily ever after, right?

While you might be driving again, more likely than not it came with a cost. Losing your car keys can be a pricey mistake. Depending on who you go to for a new set of keys, it can be very expensive... particularly if you go back to your car dealer.

Thankfully, many insurance policies provide coverage for locksmith callouts and key replacement - if you’re a bit tight on money, this can be a lifesaver.

Today, we’ll be going into a bit of detail about your auto locksmith, insurance, and what you should do if your car keys mysteriously vanish.



Does my insurance policy cover car key replacement?

Long story short: it depends on your policy.

Some companies offer car key replacement as part of their standard car insurance policies. Others only offer coverage as part of their comprehensive plans. In some cases, key coverage is an extra and can add up to $50 to your premiums.

In our experience as auto locksmiths, the majority of insurance companies that do offer coverage for key-related will cover anywhere between $500 to $1000 to cover the costs of new keys and an emergency locksmith.

Of course, before you go claiming anything, be sure to check whether your policy even includes key replacement! If you don’t already know, we suggest going online or getting on the phone with your car insurance provider now.


Use your brain before you claim

Replacing your car keys can be nothing short of an inconvenience if nothing else!

But is claiming car key cover that great of an idea?

Depending on your policy, your insurer might charge you an excess fee when you make a claim. And as anyone who’s dealt with car insurance will tell you, excess fees can be a killer.

In some cases, this excess fee can be equal - or even greater than - the amount of coverage your insurer provides for lost keys!

And keys are no exception.

While the exact amount varies depending on your policy, in our experience many insurers only cover around $500 for key replacement. For a lot of car owners, the excess fees they’ve agreed to tend to hover around that mark too - completely cancelling out what their insurance would give them.

And if you’re a driver and under 21, you mightn’t even want to bother. Young drivers generally see excess fees anywhere between $700 to $1500.

For many situations, that’s just - wait for it - excessive!

If you’ve recently had to call an emergency locksmith to get you back on the road, insurance might be able to cover some of it. But before you ring your provider, it’s important to first think about how much you’ll really be paying.


What about stolen keys?

If you get your car keys stolen, we have two pieces of advice:

  • Call an auto locksmith to get a replacement key
  • Investigate whether it’s worth claiming insurance

There may be some cases where you won’t have to pay a cent in excess fees. And key theft may be one of them. In these cases, your insurer will waive the excess and cover the cost of getting replacement keys for you. Great news!

Unfortunately, however, you’ll need proof your keys were stolen to make a claim. That includes filing a police report.

Our advice is to get your keys replaced or your car ignition changed first. Many insurers won’t pay - even with proof - if they can say you “haven’t taken steps to secure your car”.

Oh, insurance claims. Aren’t they a bundle of fun?


Stranded without a key? Call an auto locksmith!

Don’t get us wrong, we’re not ragging on car insurance - far from it! It’s crucial for ALL drivers.

We can all think of at least one situation - car-related or otherwise - where our insurance policies have come in and saved us from taking a major financial hit.

While your car insurance may cover missing keys, in many cases excess fees and the relatively low coverage offered means making a claim may not actually be worth it.

Of course, before you even consider calling your insurer you’ll need to get back into your car!

As one of Melbourne’s premier auto locksmiths, Galmier Locksmiths is the name you need when you lose your car keys.

With a dedicated mobile locksmith service that covers the entire Bayside area, Alex and the team are proud to offer an out-of-hours emergency service that’ll get you back on the road!

For all your key-related needs, give us a call today on 0407 022 234 or get in touch with us using the form on this page.

Disclaimer: please note this is general information only. Get in touch with your insurance company for more accurate and precise information relative to your policy. Please accept this blog post as general guidance only!