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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 work mechanically via grooves on the tops and bottoms. Early car keys were easy to duplicate, but manufacturers later introduced a chip that stored a unique “password” for your vehicle. This provides an additional layer of security against theft. Transponder key A transponder, also known as a chip key, is a special key fo