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How to Use Automotive Keys Properly There are many different types of automotive keys. Some have transponder chips inside their heads, and others are flat and operate mechanically via grooves on the tops and bottoms. Car keys of the past were easy to duplicate, but manufacturers later introduced a chip which stored a unique"password" for your car. This provides an additional layer of security against theft. Transponder key A transponder or chip key, is a special car key that is equipped with an electronic microchip in the head of the key. This tech