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How to Use Automotive Keys Properly There are many different styles of automotive keys. Some keys have transponder chips in their heads. Others are flat and function mechanically using grooves on the tops and bottoms. Early car keys were easy to duplicate, however manufacturers later introduced a chip which stored a unique “password” for your vehicle. This adds an extra layer of protection against theft. Transponder key A transponder key, or chip key, is a unique car key that is equipped with an electronic microchip embedded in the head of the key. Th