$200 for a spare key

[jambo101]

We now have a third driver on our 08 Yaris, so i thought i'd get an extra key,The $2.50 spare keys will open the door but wont start the car,i'm told the key needs a chip.
Went to the dealer he said $75 to cut the key then i'd have to bring the car in where they would program the chip for another $75,after tax were talking $200, Thats nuts, any way around this?or thats now the way it is?

Thanks