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When An Insurance Policy Can Cover Locksmith Work & When It Doesn’t

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Updated October 2nd, 2020

Locked out of your car?

Called a locksmith?

Want to know if you can now be reimbursed for that unexpected charge from your insurance?

See below for how the process works.

Payment & Reimbursement from Insurer

Most locksmiths prefer accepting payments directly from the customer they are servicing.

Often, you can take your receipt of service from your preferred locksmith and submit it for reimbursement from your insurance company.

You may also contact your insurance company before the work is done so that they in turn contact your locksmith and offer to pay on your behalf.

Most Common Reasons Drivers are Locked Out

RankCause of Driver Locked out of Vehicle.
1Locked In The Car
2Lost Their Car Keys
3Key Fob Battery Is Dead
4Key Fob Is Faulty
5Attempted Vehicle Theft
6Wrong Key Inserted Into The Lock
7Lock Is Worn Out Or Jammed
8Keys Are Worn
9There Is A Broken Key Or Foreign Object Lodged In The Car Lock

Note: FOB is the electronic part of the key. Also known as a remote or transponder key.

Types of Locksmith Scenarios Inquired about Insurance

There are three types of locksmith scenarios that are most often inquired about in regards to insurance:

(1) theft of keys and re-keying vehicles and homes,

(2) lost car keys, and

(3) car lockouts.

Lost Car Keys and Car Lockouts

Most insurance companies contract with roadside assistance providers to cover car lockouts.

Many cover the service call and have set limits for lost keys.

Most companies will reimburse their clients for the costs of these items. 

Top Roadside Assistance Companies

RankRoadside Assistance ServicesPrice
2Good Sam Roadside Assistance$79.95
3Allstate Motor Club$52.00
4National Motor Club$96.00
5Paragon Motor Club$69.95
7BP MotorClub$95.88
8Better World Club$58.95
9GM Motor Club$94.00

Vehicle and house keys can become stolen and damaged. This is not specific to a certain type of policy.

Contact your agent to see what is covered.

Here are some things we have seen.

This image shows what to do when you are locked out of your vehicle via 5 steps, stay calm, check for spare keys, don't break into your car, call a locksmith, wait in a safe place.


Vehicle & Home Keys

Vehicle keys may be covered if the reason for the damage is the same as the reason why the vehicle needs to be repaired.

Home re-keys and vehicle re-keys may be covered under a home insurance policy.

Normally, the deductible cost is higher than the out-of-pocket price for the service, however, we have had customers that had this type of coverage.

A Bit About the Process

Most major insurance companies contract out for their roadside assistance to providers such as Agero, AAA, or Road America.

Some of these companies have their own fleet and/or contracts with smaller towing and locksmith companies like ours.

So, if you want to push your insurance company to cover the work and then you pay the difference, we do receive and work for many large service providers that you call us about.

You’ll just have to pay the amount that’s not covered by your insurance.

Below is a list of top insurance companies which have roadside assistance and their price:

Insurance CompanyCostPhone Number
State Farm Emergency Road Service$4.56 / year877-627-5757
GEICO Emergency Road Service Coverage*$15.60 / year800-424-3426
Progressive Roadside Assistance$16 / year800-776-2778
Farmers Towing and Road Service*$23 / year800-255-7828
USAA Roadside Assistance$24 / year800-531-8555
Allstate Towing and Labor Cost$125 per Occurence800-255-7828

Overall, if you want to have our services covered by your insurance you need to contact your insurance company and work through them.

They need to contact us directly.

If you have a current Oregon-based State Farm insurance policy, and you’re the authorizing individual, we’ll bill them directly.

However, you must be willing to accept full responsibility for the payment, if the request is denied.

If you don’t want to deal with the hassle now, you can check to see whether, or not, your insurer will reimburse you.

Then, you can pay us directly and we’ll send the receipt for reimbursement.

Amount of Drivers Locked out Per Year

This graph illustrated how many drivers a locked out of the car year by year.

Note: The amount of drivers locked out of their car has decreased year by year. Smart keys have contributed to the decline in lockouts. However, the decline in lockouts will slow since other factors contribute to lockouts such as drivers losing their keys.

We hope this helps you understand how your insurance coverage can be used for specific situations.

The information we have provided is based on how this process works from the perspective of a locksmith company.


There are many do’s and don’ts when faced with a lockout.

See the chart for tips from America’s Lock and Key, a long standing locksmith company based in Tampa, Florida.

Greg Fowler

Greg Fowler

Managing Member of AutoInsureSavings LLC, Greg has been in the insurance industry for 12 years and enjoys rebuilding vehicles. His goal is to help drivers save on anything related to automobiles. Travel and enjoying the outdoors are some of his hobbies. The best way to reach him is at his Twitter or Facebook Profile.

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