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How to Use Automotive Keys Properly Automotive keys are available in various styles. Some keys have transponder chips embedded in their heads. Others are flat and operate mechanically through grooves on the bottoms and tops. Early car keys were easy to copy, but manufacturers later added a chip that stored a unique"password" for your vehicle. 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 microchip in the head of the key. This technology is used in a variety of