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new valet key over $250??? V70-XC70 2007

I got a quote from my local dealer for a new valet key for our new-to-us '07 XC70 that came with only one key (a valet key). We want one more key to be safe in case we lose one. The dealer told me that the key blank is about $45.00. OK, it's a Volvo. Whatever. Apparently, there is a chip or something in the key that needs to be coded and matched to the software. The total quote was almost $260.00! Does that seem at all reasonable? The local locksmith says it's got to be done by the dealer. But, good lord! Any thoughts about options?






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