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How to Use Automotive Keys Properly There are many different styles of keys for cars. Some include transponder chips in their heads, and others are flat and function mechanically via grooves on the tops and bottoms. The first car keys were simple to duplicate, but manufacturers later introduced a chip which stored a unique"password" for your vehicle. This is an extra layer of protection against theft. Transponder key A chip key or transponder is a unique key for cars that has a microchip embedded