Mobile phone insurance explained

Do I Need Mobile Phone Insurance?

Investing in insurance for your mobile phone can give you peace of mind and save you hundreds of pounds if it gets lost, stolen or damaged beyond repair. Yet many of us don’t know where to start when it comes to narrowing down the array of policies on offer.

Will my Warranty Cover my Mobile Phone?

Mobile phones will come with a manufacturer’s warranty, which usually lasts for between 12 and 24 months. However this will only cover mechanical faults and will not give you protection from loss, theft or accidental damage.

Which Mobile Phone Insurance is Right for Me?

As with any insurance policy, you need to ensure that mobile phone insurance covers what you need and is within your budget. Consider the biggest risks to your phone. Does it get dropped regularly? If so, then accidental damage cover is a must. Are you prone to misplacing it? Loss and theft cover would be useful. Do you travel a lot? Make sure your policy covers you while abroad.

Once you figure out what you need from your policy, you’ll find it easier to compare different insurance providers and the mobile phone insurance policies on offer.

Key Factors

There are three key elements you should consider when researching your mobile phone insurance policy:

1. Cover: Make sure the policy provides the type of cover you need, whether that’s accidental damage, loss and theft and/or overseas cover.
2. Value: Know how much your phone is worth, then make sure you choose a policy that provides adequate cover to replace it, should you need to.
3. Excess: Every time you make a claim, you’ll have to pay an excess. The amount can vary from £50 to £100, or you can pay a higher premium to ensure there is no excess. If you think you’ll make multiple claims, the latter could be your most cost-effective option.

Be Aware of Exclusions

You’ll find that most insurers have clauses written into their policies to state what they won’t cover. These include:

–           Intentional damage

–           Everyday wear and tear

–           Phones older than six months

–           Lost SIM cards

–           Theft due to negligence

–           Manufacturer’s defects

Can I Save Money on Mobile Phone Insurance?

It’s always far more important to choose the right cover than the cheapest cover, however there are ways you can ensure you get the best value for money:

• Multi-gadget discount: Could you insure all your family’s phones under one policy? Or do you have multiple gadgets you need cover for, for example a phone, laptop and tablet? If so, you could benefit from a multi-gadget policy or discount on the overall price.

• Annual payment: Paying for your policy in full rather than via monthly instalments can often mean you pay less overall.

• Adjust your excess: If you can afford a higher excess, it could save you money on the overall cost of your premium.

What Information Will Insurers Need?

It’s usually straightforward to arrange insurance for your mobile phone. Insurers will usually ask for the following information, and it’s important that the details you provide are accurate:

–           The age of your phone

–           Proof of purchase

–           What condition your phone is in

Multi-gadget policies

If you have more than one gadget you need insurance over for, or if your family has multiple devices that you need insurance for, it would be worth considering a multi-gadget policy. These can provide cover for devices including mobile phones, tablets, eReaders, laptops, smart watches and cameras, and often work out more cost effective than insuring all gadgets individually.

Can’t I Just Use my Home Insurance?

You can, but your cover may be limited and the excess is usually higher than it would be with mobile phone insurance. Any claims you make could also increase the cost of your home insurance.