India’s car market is estimated to grow at a CAGR of 20% between 2020 and 2025. This rapid growth has necessitated several changes in the current regulation for automobile ownership. One such is the need to have every vehicle insured for on-road use.
While insuring a car is mandatory now, only a few people are aware of the merits of car key replacement insurance policy.
Over the years, along with the automobiles, the keys for the same have also evolved, incorporating technologies like Frequency Operated Button (FOB). Needless to say, replacing or repairing such feature-laden car keys can cost a hefty sum.
Thus, it has become necessary for car owners to avail a key replacement cover to avoid financial loss witnessed due to misplaced or lost car keys.
However, before purchasing these policies, individuals need to educate themselves about its benefits in detail.
What is a key replacement cover?
Car keys can get damaged, lost or stolen relatively easily. Irrespective of the reason, individuals can cover the cost of replacing or repairing the key with a car key replacement insurance policy. With an insurance plan at place, the coverage will include the following.
- The cost of replacing the car key if it is lost or stolen will be reimbursed. However, this lost key insurance coverage will cover only the charges of making a set of keys and the amount paid to a locksmith.
- Along with the vehicle, key replacement insurance plans such as Key replacement cover provided by Bajaj Finserv under Pocket Insurance & Subscriptions also financially covers the insured individual against the cost of house key replacement. In case one gets trapped or locked in a car or house, this plan covers the cost of calling a locksmith to unlock the same.
- Replacing complicated car keys, like keyless remote control and FOB keys can take a lot of time, as much as an entire working day. In such cases, one can rent a car to reach a safe destination, and claim reimbursement for the rental amount under this insurance policy.
Apart from these, several other benefits are there that individuals can benefit from if they avail a key insurance policy.
What are the benefits of key replacement cover insurance?
Following are the features of a car key replacement insurance plan.
- High coverage
Under this plan, individuals will stay insured for up to Rs.60,000 against a nominal premium.
- Card blocking system with a single call
In case an insured individual loses his or her car keys along with their wallet with credit and debit card, they can call the customer care number to block all the cards to prevent any unauthorised use. Alternatively, one can also purchase wallet care to financially safeguard these payment cards and extend the insurance coverage.
- Essential travel and roadside assistance
Under this car key replacement insurance policy, insured individuals are eligible to receive emergency travel and hotel booking assistance of up to Rs.20,000 and Rs.40,000 respectively across several locations across the country.
- Device security
Purchasing this insurance plan, one can get complimentary internet security that will protect their laptop/computer against any unauthorised transaction or malware.
- Easy payment options
Applying for this insurance plan is straightforward as all an applicant has to do is fill-up an online form and pay the premium using credit/debit card or net banking.
Along with a car key replacement insurance policy, individuals can also opt for car brand logo insurance. It offers financial assistance in case they need to repair the damaged logo or emblem of their luxury car. It is a must-have plan to prevent any unwarranted expenses.
