Lost your car keys? Don’t rely on big insurers covering your costs

AS MANY as one in four insurance claims for lost or damaged keys are being rejected, according to official figures.

Key cover is often sold as an extra to car insurance. It typically promises to cover the cost of replacing mislaid or damaged car keys and any locksmith charges.

Yet major insurer esure only accepted between 75 pc and 79.9 pc of claims between August 2016 to 2017, according to the City watchdog, the Financial Conduct Authority — although it paid out higher amounts on average than other firms. Great Lakes Insurance refused as many as one in five claims, accepting between 80 pc and 84.9 pc of claims. By contrast, AmTrust Europe paid between 95 pc and 100 pc of claims over the period.

This type of cover can be riddled with exclusions: some insurers refuse to pay out if they believe you haven’t taken enough care or fail to report lost keys to the police.

An esure spokesman says: ‘Key cover is typically sold for under £10. The average claim costs £350 to £400, demonstrating the value that this product provides to customers should they need it.’