What is key replacement cover in car insurance policy?

Most modern car keys come with an encrypted lock number that makes duplication challenging. Hence, losing or misplacing the car key can be an expensive affair besides being incredibly frustrating. It is, therefore, advised to include a car key replacement insurance cover in the vehicle’s insurance policy .

This add-on key insurance policy can conveniently cover the cost of replacement of the insured vehicle’s damaged or misplaced key.

The importance of availing a key replacement insurance policy for a car has been discussed below. Also explained are the benefits of the insurance policy so that one can make an informed decision.

Why should one opt for a key replacement insurance plan?

Over the years, vehicles have seen a massive advancement in terms of technology. Earlier, a locksmith could easily duplicate a car key, and hence, availing key replacement coverage was not commonplace.

Nowadays, a car’s key, lock and lockset are, however, way more sophisticated and secured, thereby making it difficult to duplicate the key affordably. Losing, damaging or misplacing the vehicle’s key can thus be an expensive affair without a car key replacement insurance plan in place. It is especially true for modern cars that use electronic key Frequency Operated Buttons (FOBs), which are much costlier than traditional keys.

Hence, consumers must include the add-on key replacement coverage in their vehicle’s insurance plan. On the other hand, they can also avail a key replacement cover from a reliable financial services provider.

Like, Bajaj Finserv provides, under its Pocket Insurance and Subscriptions, the Key Replacement Cover that can be of great benefit to vehicle owners. One can easily apply for this policy from the insurance aggregator’s official website.

It is wise to remember that the premium paid towards key replacement insurance policy is less nominal compared to the original price of replacing a damaged lockset. However, the premium also varies with the maximum sum insured.

What are the benefits of a car key replacement insurance plan?

Availing key replacement cover with the car’s insurance plan, one can enjoy the following conveniences:

Replacement of lost or misplaced car key

In the scope of lost key insurance coverage, the consumer can claim replacement of the lost or damaged key of the same kind.

Replacement of the key in case of theft

An individual can claim the insured amount for replacement of car key in case of theft or burglary.

One can also opt for insurance policies like a key safeguard policy that covers the cost of key replacement and locksmith charges besides providing emergency roadside assistance.

No effect on NCB

Opting for and claiming a key replacement cover insurance plan will not affect the policy holder’s NCB (No Claim Bonus) eligibility.

Easy to file a claim

If one buys the key replacement insurance policy and happens to lose the key, it is easy to file a claim. One can either opt for a cashless facility or get the amount reimbursed. Both processes can be completed conveniently online.

Consumers can also apply for insurance products like wallet care that allow for multiple online payment options and a high sum insured.

Reimbursement for lockout and car rental

The insurance provider can also reimburse the costs incurred while looking for a locksmith. In the case of FOBs, the system is complicated, and it will take a longer time to open the car. Under such circumstances, one might have to rent a car, and the insurance aggregator will reimburse the rental charges thereto.

Nevertheless, when filing a claim under the car key replacement insurance policy, one must take care of the applicable exclusions. It will help individuals gain a better idea of an aggregate of the coverage benefits. So, to avoid any hassle, consumers must include car key replacement insurance as a part of their vehicle’s comprehensive insurance policy. In case they haven’t, they can also avail affordable car key replacement cover from a reliable NBFC. Such an insurance policy can be beneficial in the face of accidental damage or loss of keys, particularly for new-age cars with innovative technology.

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