Are Dealers Making Keys For Thieves?

Several newscasts have exposed dealerships for cutting keys without asking for proper identification or proof of ownership, leaving them open to vehicle theft. Universal Underwriters Group offers these tips to improve dealership key cutting controls:

à Limit key cutting access to one or two trusted employees.

à Before making a key for a customer, require him or her to show proof of ownership and proper identification. Do this even if the customer has a spare key. And when customers call you with a key code, don’t cut the key until they come to the dealership and show proof of ownership and ID.

à Keep a log documenting every key made. Include the vehicle’s serial number, the customer’s name, address and phone number, and the name of the employee who made the key. The address on the customer’s ID should match the owner’s address that you have on file. If it doesn’t, contact the owner to verify that he or she is aware that someone is requesting a key for the vehicle.

à Before cutting keys for dealership employees, require them to provide a work order that has been signed by a sales or general manager. Document these jobs in the key cutting log.

à Assign a manager responsibility for reviewing the key cutting log each month to make sure it’s being used correctly.

à Implement these measures, and you’ll reduce your chances of giving keys to a thief. If you already have a key cutting policy in place, do two things: make sure your employees know what the policy is, and make sure they are following it.

This information is not intended as legal advice. Consult your attorney and your underwriter to determine your dealership’s stance on these issues.

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