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This allows your car to start and unlock the door.<br><br>Transponders were developed as a result of the increased levels of car theft. They are now a staple in nearly all cars and can prevent thieves from hotwiring your car.<br><br>A transponder can be described as an electronic device that has a non-volatile memory which means it doesn't need constant power to store information. It's a little bigger than the microchip in your phone, and looks like a coil of fine wire.<br><br>These chips are in almost all car keys produced since 1995. They are also present in smart keys, Remote Head Keys (RHK) and a few key fobs.<br><br>Transponder keys are more expensive to replace, yet they add an extra layer of security. There are also traditional keys that are not transponder-compatible. These keys are the ones you've seen on older vehicles with grooves. 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Basic key chips with any extra features are typically the least expensive.<br><br>Costs are higher when keys have an integrated transponder. These keys require special equipment to copy and need to be reprogrammed to the vehicle in order to function.<br><br>Laser cut keys, remote or proximity key fobs switchblade key, and proximity key fobs are some of the features that can increase the cost. These features are designed to make your keys more secure, but they can cost more to replace.<br><br>In many cases it is more economical to purchase a spare key from your dealer rather than calling a locksmith. Dealerships are equipped with required tools and equipment to make keys that are unique to your vehicle. 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