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Back in the day, replacing your car keys was a fairly simple and affordable process. You could call out an auto locksmith and they’d cut new keys to match your locks and ignition – sometimes even on the spot. You’d still do this if you’re driving an older model car that uses a traditional key.
But car keys have become increasingly sophisticated and the average price for a car key replacement is now close to $500. So why is it so expensive?
PS: Home thefts increasingly include stealing car keys. Read here how to keep keys safe and prevent having your car stolen at home.
Car key replacement types
First off, let’s look at the types of car keys and what would be needed to replace them:
Traditional key
A mechanical key that starts your vehicle by turning an ignition cylinder. If lost, you can call an auto locksmith to cut you a new key. If your car is an unusual or very old model, they may have to replace the entire ignition lock cylinder. Nevertheless, this is the most inexpensive key to replace.
Remote key
Allows you to lock and unlock your car from a distance. For this car key replacement, you’ll need to buy a remote key at your car dealership or an auto parts store and have it programmed.
Car key fob and switchblade key
A key with a lock/unlock remote and spring-loaded mechanical key that folds inside of it, like a switchblade. If lost, you’ll need to have the remote part programmed and the mechanical part cut by a locksmith.
Transponder key
A key with a microchip inside that uses a wireless connection to engage the car ignition. If lost, you’ll need to have it cut and programmed by an auto locksmith.
Smart key
A key that uses a proximity sensor that automatically locks and unlocks your car when you’re nearby. Also known as a “keyless ignition,” it starts the car with the push of a button. This is the most expensive key to replace, and you’ll need to have it cut and programmed by an auto locksmith.
Why not make sure you never lose your keys again with our guide on gadgets and apps for lost car keys.
Car key replacement: Why is it so expensive?
As mentioned, the average cost of a replacement car key in Australia is close to $500. At the time of writing it is $464. On the low end, a key replacement can cost you $90; on the high end, it can cost up to $5,000.
As car technology and car safety features have evolved, so have car keys. No longer just a piece of metal, they’re sophisticated electronic devises with a battery, transponder chip and printed circuit board.
They’re expensive to replace due to the tools and licensing required. First, a blank key must be cut with an automated key cutting machine that costs thousands of dollars. Then, the dealer or auto locksmith must programme the key and add a code to it.
The licensing for the programming tools they use can also cost thousands of dollars. Then you need to add the cost of the auto locksmith’s time and labour.
There are several factors that will affect the cost of a replacement car key, including:
- The car’s make and model
- Your location. Costs can vary between areas – with dealers in Sydney likely to be the most expensive
- Time of the day. Key replacement will cost more if it’s required outside of normal business hours
- The type of keys, as mentioned above
Speaking of expensive keys, check out this diamond-encrusted Bugatti key. It’s valued at a cool $854,210!
Insurance: The key to peace of mind
No one loses their car keys on purpose. But just like crashes and dents, accidents happen. Make sure you’re covered with PD Insurance. We offer affordable online comprehensive car insurance, third party property damage and third party fire and theft coverage.
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