If your car was manufactured in the past decade or so, there's a good chance that it comes with transponder key technology. What does that mean? Basically, a car with a transponder key contains an electronic chip that syncs to the car's engine when it's first built. From that point on, only a transponder key that's synced to the car's engine will be able to start the car. This reduces the chances of a vehicle being stolen, so many vehicle owners with transponder keys enjoy lower auto insurance rates.