We’ve all been there – sitting in the mobile phone shop, clutching our shiny new phone, and having the dilemma of whether or not to pay to insure it. With most mobile phone providers charging an extra £10 to £15 a month for the privilege, it’s no wonder many people walk out of the store uninsured.
So is mobile phone insurance worth it, and should we all be taking it out as standard? As with any valuable personal item, the answer surely has to be yes (unless of course you really trust yourself and are prepared to face the consequences if the worst happens). Whatever you decide, it’s always best to look before you leap and consider all of your options.
Shop around
You don’t need to take out insurance with your network provider. In fact, quite often you can find cheaper policies elsewhere, with better cover. You can insure the latest smartphone for as little as £5 a month.
You can also insure your phone through your home insurance. It will mean paying a bit extra on your premium, but usually not as much as taking out a specific policy. Be aware that your premium may increase if you make a claim, which doesn’t happen with most mobile phone policies.
If you have a packaged bank account, check to see if your mobile phone is covered before taking out another policy. Also check the small print as some policies may only cover phones purchased in the last two years, and an excess will usually apply. An example of a bundled account is the Nationwide Flexplus which also covers other family members under the age of 19 who live at the same address, and allows up to two claims per year.
Always check your cover
There’s more than just price to consider when choosing how to insure your phone. Make sure your policy covers you for loss, damage and theft. In particular check that you are covered for water damage and the cost of unauthorised calls if your phone is stolen. You should also check what is classified as ‘loss’, as some insurers will not cover you for carelessness, which includes accidentally leaving your phone in the back of a taxi, or in a bar.
Check the excess
All insurance policies carry an excess (the amount you must pay when making a claim). Mobile phone insurance tends to have an excess of between £30 and £50, while if you add your phone to your home insurance, your excess may be more than £100.
Can you live without your phone?
If you rely heavily on your phone then be aware of the replacement policy of your chosen insurer. Although the insurance policies offered by phone networks are generally more expensive, they are usually the quickest at delivering a new handset to you. If you cover your phone through your home insurance, you may wait a while before receiving the cash to buy a new one.
Some places to try if you’d like a standalone policy are www.insurance2go.co.uk and www.gadget-cover.com.
