A replacement key fob for a 2022 Toyota Highlander hybrid costs $250 for the fob itself, $44 for cutting, and $160 for programming, plus tax, totaling over $500. Similar prices appear standard across dealerships, with some customers quoted above $600.
Sean Tucker, managing editor at Kelley Blue Book, explains the cost reflects security needs. "The latest key fobs are surprisingly high-tech, using a constantly-changing encryption code, to try to foil thieves who use devices that mimic a key fob. That means they are, effectively, tiny computers transmitting signals." Newer car models have more complex technology than older ones, which affects pricing.
Dealership quotes are not your only option. Ace Hardware advertises replacement keys for Ford, Toyota, and Hyundai for 50% less than locksmiths or dealerships with no hidden fees. Many customers use third-party locksmiths who order a blank key, cut it, and program it to the specific vehicle. One reader used Car Keys Express through a Costco member discount and paid just under $300.
Most standard car insurance policies and warranties do not cover lost key replacement. Progressive offers a vehicle protection plan that includes key replacement for as low as $12 per month.
Some newer luxury cars now use a phone instead of a key fob, relying on near field communication, ultra-wide band, or Bluetooth technology.