Car Key Loss Insurance for Multiple Vehicles

Today’s vehicle keys are rather different to what they were in the years between cars first having keys in the 1950s, and the 1990s when remote locking keys first appeared on the scene. The latest car keys have developed significantly since then. Today, whilst security concerns abound, keyless-entry cars are available that can be locked, unlocked, and started without inserting a key or straight from your phone.

Most cars manufactured today have a transponder key, many also with a traditional key for added security, some more advanced than others, to lock, unlock and start a vehicle. The cost of replacing a transponder key typically varies between £300 and £1,000.

The risks of car key loss for multiple vehicles

The worry for a fleet operator is what would happen if your key safe or similar was somehow accessed and all your keys were taken at once. If keys are stolen, then having a spare set of keys is of little benefit if whoever stole the keys is likely to be able to identify the vehicle to which they belong. Assuming that is the case, then the key and the lock mechanism for all vehicles affected may need replacing.

If fire breaks out at the premises where you keep your vehicle keys when not in use, and all your keys are destroyed at once, then the problem may be less acute, albeit still costly, if it is only the keys that need to be replaced rather than the vehicle lock mechanisms as well.

Specific car key loss insurance for multiple vehicles

The cost of replacing vehicle locks and keys following loss, or theft by violent and forcible means, may be covered under a commercial motor, motor fleet, or motor trade road risks policy. If you have a motor trade policy, you may also have cover under the material damage section of your policy for vehicle keys lost or stolen at the premises.

However, there are issues. A limit for any one vehicle, any one event and / or any one period of insurance may apply. This means if several keys are stolen at the same time you may not have enough cover.

Key features of car key loss insurance

From a motor insurance cover perspective, it is important to make sure you have sufficient cover for lost or stolen keys. Make sure cover includes the cost of:

• Replacing the locks to the door and / or boot.
• Replacing the ignition / steering lock.
• Replacing the lock transmitter and central locking interface.
• Recoding and / or replacing any vehicle-related alarm system if that’s necessary.

Terms and conditions for car key loss insurance

It is also essential to understand what precautions you may be required to take under the terms and conditions of the keys cover under your motor insurance policy. Requirements may for example include:

• During business hours, keep keys to unattended motor vehicles in a securely locked place, out of sight of the public.
• Outside business hours, remove keys to unattended motor vehicles from the premises or keep them in a locked safe or purpose-built keys cabinet approved by the insurer within an alarmed part of a building at the premises and remove the keys to the key cabinet from the premises.
• Take keys to the premises off site when leaving them unattended.
• When an employee leaves the business, take action to prevent theft, including the removal of any access keys held by the employee, changing alarm or security codes that the employee may know and switching off access to computer systems.

Avoiding car key loss by theft

From a key theft perspective, prevention is better than cure. Taking all reasonable steps to prevent the theft of keys, and making sure you comply with all policy terms and conditions relating to whatever keys cover you have, is essential. Measures to consider, if not already taken, include:

• Installing an insurer-approved key safe in a physically secure and alarmed part of your premises.
• When premises are unattended, removing vehicle keys from the premises.
• When removing keys from the premises, consider sharing them between key individuals.
• Installing an insurer-approved key safe in the homes of those taking vehicle keys away from the premises.
• Using secure key safes in peoples’ homes not just for vehicle keys, but also for premises keys and key safe keys.

Particularly important when taking risk management measures is to make sure the business practices you adopt and the measures you take are agreed with your insurer.

Understanding car key loss insurance

We recommend you take the following steps immediately:

• Read your policy wording and schedule carefully; make sure you understand what cover you have under your motor insurance policy.
• Consider whether the keys cover you have is sufficient.
• Review your compliance with policy requirements relating to keys cover.
• Check if you have any cover under a property damage policy for damage to keys by fire at your premises.

Fleet insurance from Towergate

Towergate can offer tailored fleet insurance with the right level of cover for you. Our ‘buy-right’ experts, using a risk-management led approach, ensuring you get your business back on the road

If you have any questions about keys cover under your fleet insurance policy speak to your usual Towergate Insurance contact.

About the author

Chris North FCII is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is currently Technical Manager for Towergate's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.