Modern mobile phones are considerably expensive and they are fast becoming a necessity. If you’ve just upgraded to the newest tech, the chances someone has tried to sell you phone insurance is immensely high. Even with this, a recent study carried out by Research and Markets shows that only 24% of UK mobile phone owners are covered by a phone insurance policy!
Have you ever considered taking out a policy? In this article, we will discuss what it covers and what you should consider. But before we get into the importance of phone insurance, let’s talk about what it is:
“Mobile phone insurance is a specialist policy that covers the cost of replacing or repairing your mobile device.”
In the event that your phone is lost, damaged, or stolen, most phone insurance policies will have you covered. You may also find that you have to pay an Excess Fee, dependent on the policy you chose. Excess fees typically range between £50 to £100 but can be more.
What Does Phone Insurance Cover?
Now you understand the fundamentals of phone insurance, what does it actually cover? You will find that most mobile policies will cover the below basics:
- Loss – In the unfortunate event that you’ve misplaced your phone, most insurers will cover this.
- Theft – Depending on how your phone was stolen, policies will also cover the theft of your phone.
- Water Damage – Typically, this will only be applicable if it was accidental. Taking a bath with it won’t be covered by your insurer.
- Internal Issues – If your phone experiences a mechanical or technical problem and is out of warranty, it’ll be safeguarded by your policy.
As you can see, it can cover you from any unwanted damage. If you’re thinking about investing in phone insurance, be sure to read the small print first. Being aware of what you can and cannot claim for is essential.
If you do need to claim, be sure to read our post on making a successful mobile phone insurance claim.
Is Mobile Phone Insurance Worth It?
Considering most mobile devices circulating on the market are in the thousands, it might be worth thinking about. Many people forget the sheer value a new mobile phone contains, as most of them are on long-term contracts. So much so, that a quarter of UK residents said that they would buy a phone insurance policy, whilst only 17% said they would buy a life insurance policy.
Not sure if you need mobile insurance? Here’s what you need to think about:
- Think about how forgetful you are. With your new phone, do you think you’re likely to misplace it in a location where it’ll get stolen?
- How much does your phone cost, and how much do you feel comfortable losing? If you have a brand new iPhone, this is probably £1,000+, and I would consider mobile insurance.
- Double-check to see if you’re not already insured. Sometimes banks and home insurances will already cover your phone.
- Get a rough idea of repair costs for your phone. Have knowledge of how much a new screen, battery, and buttons cost for your phone. Here you’ll be able to estimate if it’s worth self-insuring or getting an actual policy.
Mobile insurance is one of those things that you don’t need until you need it. Failing to have a good policy, or one at all may result in you having to pay a hefty repair or replacement cost.
James Banerjee is an Account Director who graduated from the University of Kent in 2014. He works in SEO on clients such as HSBC UK and Nestle and he has a keen interest in personal finances and money-saving advice.