- One in four insurance claims for lost or damaged keys is rejected by providers
- Insurers refuse to pay out if you haven’t reported lost keys to the police
- Key cover is an additonal extra that usually costs under £10, esure said
No guarantees: Key cover is often sold as an extra to car insurance
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 per cent and 79.9 per cent 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 per cent and 84.9 per cent of claims.
By contrast, AmTrust Europe paid between 95 per cent and 100 per cent 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.’
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