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How to Use Automotive Keys Properly There are many different types of keys for cars. Some of them have transponder chips on their heads, and others are flat and work mechanically by utilizing grooves on their tops and bottoms. Car keys of the past were easy to duplicate, however manufacturers later introduced a chip that stored a unique"password" for your car. This provides an additional layer of protection against theft. Transponder key A transponder key, or chip key, is a special car key with an electronic mi