One in three car insurance policies does not include coverage for this common accident

Approximately one-third of car insurance policies do not provide coverage for a common mistake made by numerous drivers annually, a mistake that is becoming progressively more costly.

Research conducted by a reputable comparison site revealed that 32 percent of comprehensive policies do not offer compensation for this particular error as a standard feature.

Individuals falling within this minority group will find themselves unable to make a claim in the event of a lost car key, potentially facing an expense of several hundred pounds to acquire a replacement directly from the manufacturer.

That’s because costs have soared in recent years as the latest cars use fobs that are technologically advanced with keyless locking and unlocking, as well as keyless engine start, and often require reprogramming at an extra charge. 

This is Money recently helped a reader reduce the cost of supplying a new key for their Hyundai after they were quoted more than £620 by the car maker. 

While many motorists believe their keys are covered by fully comprehensive car insurance, GoCompare has warned drivers they may have to pay extra to have it added to a policy – or a provider won’t offer it at all.

The research highlights why drivers need to check the quality of car insurance policies, as well as the price.  

A third of comprehensive motor insurance policies do not cover drivers for the loss of a key – and on modern cars that could spell a big bill

Having reviewed 323 fully comp car insurance products it found that while 91 per cent of policies will provide cover for stolen keys as standard, this number drops to 68 per cent when it comes to covering keys that have been lost. 

This will be particularly bad news for vehicle owners who put the spare key somewhere for safe keeping but can no longer remember where that is. 

The report said that a further 19 per cent of policies will offer cover for lost keys as an optional extra, but 13 per cent of policies do not offer this at all.

The comparison website’s study also found that the amount that an insurer will pay out in the event of a claim for a lost key can vary significantly.

In most cases, a car insurance policy will cover the replacement of lost, stolen or damaged keys but some policies will also pay out for replacement locks.

Tom Banks, GoCompare’s car insurance spokesperson explained: ‘At some point in your motoring life, you will inevitably misplace your car keys – and the moment that you find them is always a relief, but it’s a real headache if your search comes up empty and it turns out they’re definitely lost or stolen. 

‘Knowing that you have the right cover in place will make the situation a lot easier to deal with, and less costly.

‘With the levels of cover varying when it comes to replacing a lost or stolen car key, it’s definitely worth spending a few minutes checking your policy and making sure you’re protected. 

‘It’s also worth noting that an insurance policy may not cover keys that have simply been mislaid and you will be expected to take reasonable steps to safeguard your keys – so if you left your keys unattended in a public place, or with someone other than you, and they were stolen, your claim may be refused.’

GoCompare reviewed 323 comprehensive insurance products and found that only 68% will cover the cost of replacing a lost car key

NimbleFins recently rounded up the price of keys for some most popular cars in the UK

How much will a new car key cost?

In the last five years, the average cost of a replacement car key has rocketed, according to website NimbleFins.

The average at the end of 2024 was around £340; in 2019 it was just £136, meaning a 150 per cent increase in just five years.

In August, This is Money reader Gary Briggs told us he had bought a 2023 Hyundai Kona second hand from a private seller with only one key.

As part of the negotiations with the vendor, Gary managed to barter £250 off the advertised price, which he thought would be sufficient to cover the cost of buying a spare from the Korean car firm. 

But to his horror his local Hyundai retailer quoted him a whopping £620.72 for a replacement key.

Fortunately, motoring reporter Freda Lewis-Stempel stepped in to get the price dramatically reduced.

While £620 for a replacement Hyundai fob might sound steep, it’s nothing on the world’s most expensive car key…

The Senturion Key S177 Full Meteorite, made available by the bespoke brand in Mayfair in 2019, is the priciest of all time.

The inexplicably opulent wrist-worn gadget is crafted from asteroids produced by the UK company. Just 177 were made with a retail price of £211,550. At the time it went on sale it cost the same as the average UK house.

The car that unlocks and starts like your smartphone: The Genesis GV60 electric SUV in 2023 became the first mainstream model that can be unlocked using the driver’s FACE

Unlock you car with your iPhone…or your face! 

Some other car brands have taken technology to the next level by making a physical key almost redundant.

EV maker Polestar now offers car keys in their Apple Wallet. It means drivers can automatically unlock or lock, and start their vehicle while leaving their iPhone in their pocket or by simply wearing their Apple Watch.

Not just that, they can share it with other drivers.

‘Customers will have the ability to share car keys in Apple Wallet through Messages, Mail, AirDrop, WhatsApp, and more with up to 5 other users, and vehicle owners can also decide whether these additional users are able to gain access to their vehicle or have the ability to drive it,’ the Chinese-owned brand says. 

‘Power Reserve allows users to utilize their car keys in Apple Wallet to access and start their vehicle, even if the iPhone needs to be charged.’

Korean car maker Genesis in 2023 allowed owners of its £54,000 GV60 electric SUV to unlock and lock the doors using facial recognition – and it has a ‘start’ button that’s a fingerprint sensor that recognises the owner.