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Are stolen car keys covered by insurance?

Are stolen car keys covered by insurance?

15 Jul, 2024 - 3 min read

Are stolen car keys covered by insurance?

Key highlights

Car insurance policies that include theft cover will likely cover the cost of replacing stolen car keys.

Comprehensive car insurance and third party fire and theft policies often include coverage for stolen car keys.

It is important to check with your insurance provider to see if your policy covers stolen car keys and to provide proof of theft, such as a police report.

Having your car key stolen can be both frustrating and costly. However, the cost of replacing your stolen car keys will likely be covered by car insurance policies that include theft cover.

Which car insurance policies cover stolen car keys?

Whether they were snatched out of your handbag or taken from your pocket, your car keys may be stolen at some point. Unfortunately, replacing them isn’t cheap, as modern electronic keys can be much more expensive to replace than traditional keys.

While losing a car key to theft can make a sizable dent in your pocket, this is where car insurance can come in handy, as some policies will offer key cover as standard, including:

Comprehensive car insurance: Your policy will likely include coverage for stolen car keys.
Third party fire and theft: Stolen car keys may fall under the category of third party ‘theft’ for some insurance policies.

If your car insurance policy covers lost keys, it should cover you for the cost of replacing the keys, or re-coding the locks on the vehicle. Some insurance providers may cap this coverage at a specific amount, and you may need to pay an excess in some instances.

Different providers may have different levels of coverage in their policies. You may find that an insurance provider offers key replacement to customers as an extra, if they do not offer it as standard.

This is why it is crucial you check with your insurance policy provider and read the Product Disclosure Statement (PDS) carefully to see what is covered, and if it best suits your needs.

Which car insurance policies do not cover stolen car keys?

The following insurance types may not come with stolen car key coverage as standard:

Third party property damage: This policy type focuses on coverage for damages your vehicle may cause to another person's car or property, and not theft.
Compulsory third party (CTP): Your green slip will typically only cover injuries to other people involved in a road accident if you are the at-fault driver.

What to keep in mind if your car keys are stolen

It is important to note that you will need to prove to your car insurance provider that the keys have actually been stolen and not merely misplaced, as most policies will refuse to provide cover in the case of lost keys. This may include providing the insurer with a copy of a police report.

For example, say your bag was stolen with your car keys inside. If you want to make a claim for your stolen keys, you’ll likely need to contact your local police station to report the crime, and get a copy of the police report for the insurance company. The report should include any items that were stolen from the bag, such as your wallet and car keys.

If your vehicle is stolen and you left the car keys inside, you might not qualify for coverage, depending on the insurance policy. For many insurance companies, leaving your keys in the car is seen as a case of negligence, so any insurance claim you make may be denied. However, some may still offer you coverage, so be sure to read the policy’s terms and conditions carefully.

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