What Is KP in Car Insurance and Why It Matters?

Posted on: Feb 14, 2025 | 3 mins | Written by: HDFC ERGO Team

What Is KP in Car Insurance and Why It Matters?

Car insurance is an essential safety net for vehicle owners, offering protection against potential financial losses due to theft or damages caused by accidents. It is of two types: Comprehensive policy and third-party liability coverage.

Third-party is the basic and simple coverage, while comprehensive insurance provides extensive protection. Several add-ons are available with the latter to enhance the safety. Key Protection (KP) is one such rider that benefits many drivers. Let’s understand in detail about this add-on.

What is Covered Under Key Protect Cover?

Key Protection (KP) add-on in comprehensive car insurance typically covers the cost of replacing or repairing lost, stolen, or damaged keys. This coverage is useful in situations where the keys are misplaced or the locks are damaged. If you lose your keys or are damaged due to an accident or another covered event, KP can help replace them at little to no additional cost.

Key Protection cover may also extend to replacing keyless entry systems and remote fobs if these are part of the car's security system. In some cases, the rider might cover the cost of locksmith services and the transportation required to get your vehicle to a repair shop, depending on the terms.

Benefits of Having KP in Car Insurance

Having Key Protection rider in your car insurance policy can be incredibly beneficial. Some of the major advantages include:

1. Cost Savings:

Key replacements, especially for high-tech key fobs or keyless entry systems, can be expensive. KP ensures that you won’t have to bear the entire cost.

2. Convenience:

Instead of scrambling for solutions when you lose your keys, KP offers peace of mind, knowing that the insurance provider will handle the replacement or repair process.

3. Added Security:

In cases where the keys are lost or stolen, KP ensures that you won’t need to worry about the security of your vehicle. The cost to reprogram and replace the car’s locking system can be substantial, but the add-on typically covers this expense.

4. Comprehensive Protection:

If you’ve opted for comprehensive insurance, adding KP allows for more extensive coverage, offering you greater protection against unexpected events.

Exclusions of Key Protect Cover

While Key Protection offers a wide range of benefits, there are some exclusions that policyholders should be aware of. These exemptions may vary depending on the insurer, but common ones include:

1. Wear and Tear:

KP typically does not cover damage due to regular wear and tear. If your key or keyless entry system deteriorates over time, it might not be eligible for coverage.

2. Negligence:

If the keys are damaged due to reckless behaviour or neglect, the policy may not cover the replacement costs. For instance, if the keys are damaged after exposure to extreme conditions or mishandling, KP might not be applicable.

3. Pre-existing Damage:

Keys already damaged before the policy was purchased may not be covered under Key Protection.

4. Limited Coverage for Spare Keys:

Some policies may cover the replacement of only the primary keys used for the car and not the spare keys.

5. Certain Key Fobs:

If your car’s key fob or electronic system isn’t covered under the policy, then you may not be able to claim for its repair or replacement.

Cost of KP in Car Insurance

The cost of adding Key Protection to your comprehensive car insurance policy is relatively affordable compared to the potential cost of replacing or repairing damaged keys. The exact price will depend on the insurer, the make and model of your vehicle, and the extent of coverage you choose.

In general, KP can be added for a small additional premium, often ranging from a few hundred to a few thousand rupees annually. However, it’s important to compare prices and understand what is covered under each plan before purchasing. Some insurers offer bundled packages that include KP as part of a broader protection plan.

How to Buy Key Protect Cover Online?

Buying Key Protection as an add-on to your comprehensive car insurance policy is easy and can often be done online. Here’s a simple guide on how to add it:

1. Visit the Insurer’s Website:

Start by visiting the website of the insurer.

2. Check Available Add-ons:

Look for riders under your existing car insurance plan. Key Protection should be listed as one of the available add-ons.

3. Select KP:

Choose Key Protection from the list of available add-ons and review the coverage details, including exclusions and benefits.

4. Add to Policy:

Once you’re satisfied with the coverage, simply add it to your policy. You may need to provide details like your vehicle’s make and model and payment information.

5. Make Payment:

Complete the payment for the additional coverage and receive your updated policy documents via email.

6. Confirmation:

Ensure you get confirmation that the Key Protection coverage has been added to your policy. You can then enjoy peace of mind knowing your keys are covered.

Claiming Under KP in Car Insurance

If you find yourself in a situation where you need to claim under Key Protection, the process is usually straightforward:

1. Report the Loss or Damage:

Immediately inform your insurer about the lost, stolen, or damaged keys. You may need to provide proof of the incident or an official report, especially if the keys were stolen.

2. Submit the Claim:

Provide the necessary documentation to your insurer, which may include a receipt for the replacement or repair of the keys. Some insurance companies may require you to obtain quotes from certified locksmiths.

3. Approval and Payment:

Once your claim is processed and approved, the insurer will cover the cost of key replacement or repairs per the policy terms. If necessary, the insurance provider may arrange for a locksmith to visit your location.

4. Deductibles:

Remember that some policies may include a deductible for claiming KP. This means that it will reduce the amount you receive from the insurer.

Conclusion

Incorporating Key Protection into your car insurance policy offers significant peace of mind, particularly in the event of lost or damaged keys. It should be noted that this rider is only available with a comprehensive policy and not third-party car insurance. Though it comes with a small additional cost, the benefits far outweigh the expense that could otherwise be a costly and inconvenient experience. Always review your policy’s terms and conditions to fully understand what is covered under Key Protection.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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