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Are stolen car keys covered by insurance?

Alex Ritchie avatar
Alex Ritchie
- 3 min read
Are stolen car keys covered by insurance?

Having your car key stolen is not just frustrating, but it can also be quite a costly affair. Modern electronic keys can be much more expensive to replace than traditional ones, and losing one can make a sizable dent in your pocket. You may be wondering if the cost of replacing your stolen car keys will be covered by insurance.

Which car insurance policies cover stolen car keys?

Whether they were snatched out of your handbag or taken out of your pocket, you may have your car keys stolen at some point. Unfortunately, replacing them is not a cheap exercise nowadays.

This is where car insurance can come in handy, as some policies will offer you this protection as standard, including:

  • Comprehensive car insurance: If you have comprehensive car insurance, your policy will likely include coverage for stolen car keys.
  • Third party fire and theft: As stolen car keys fall under the category of third party ‘theft’, some insurance policies may also include coverage for this as well.

If your car insurance policy does cover 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 it 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?

Generally speaking, 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 you create.

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 so you can get a copy of the police report for the insurance company. The report should include 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 simply seen as a case of negligence. Any insurance claim you make may be denied. However, some may still offer you coverage, so be sure to read the terms and conditions of the policy carefully. 

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Product database updated 22 Jun, 2024

This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.