Faulty ignition switch? We had a very similar problem last year. Stranded in Greyhound offloading zone for hours. We own a Saturn, which I later learned were notorious for this issue. Contact the car manufacturer and get and inquire as to whether this is covered in a factory recall. If so it may be replaced or repaired at company coat. GM did a HUGE recall due to ther ignition switch problem and replaced thousands of Saturn owners` switches for free.

Sounds like you need a new starter switch where you insert the key. Before you try tearing things apart try to shoot a little WD40 where the key goes in. Even with the key in shoot it around it. Might be just dry and jammed in there. I do that with car locks as well and it works.