Mobile Insurance

Is mobile insurance really necessary? Most people don’t really see the need for mobile insurance, because they think that theft, loss or damage will not happen to their phone. However, the statistics would paint a very different picture. More than 2 million phones are stolen every single year in the UK alone and more than double of that are lost or damaged. The numbers are even more severe in the US. With phones costing anywhere upwards of £500 these days, it’s well worth it to pay a few pounds each month in mobile insurance to protect your phone against any unexpected loss, theft or damage.

You may not realize it, but your phone is at risk every single day. You could have your bag stolen, accidentally leave it in a taxi or simply drop it in the toilet bowl! You may laugh at the last one, but it does happen to more people than you think, and the results aren’t pleasant at all. You pay money to insure your home, your car and even your own health, so why wouldn’t you insure one of the most important devices in your daily routine as well? Just think about whether you could survive a day without your phone. I’m sure any honest person would answer no, they simply can’t. That’s why mobile insurance is an absolute must!

Mobile Insurance For Your Contract Phone

Getting mobile insurance for your contract phone is especially important, because you will still be liable to pay the monthly subscription to your line for the remainder of your contract period. While you did get your phone for free at the start, this cost is included in the rates that you pay on your calls, texts and other fixed charges in a month. That means that without mobile insurance, you’ll still be paying for your phone even months after it has been stolen or lost. If you check up on the actual cost of your phone, you may discover that you will need to pay between £500 – £1,000 or even more to replace it. Either that, or you’ll just have to make do with a used and outdated phone for the remainder of your contract period before you are eligible to take up another contract and get a new phone.

Most of the time, your mobile provider will offer you mobile insurance as an add-on to your contract. Mobile insurance is rarely if ever already included in your contract, so don’t assume that your provider will just give you a new phone if your old one is lost or stolen. They’re not that generous! Normally, they have some kind of special deal or affiliation with an insurance company that underwrites their mobile insurance policies that you’ll have to pay extra for.

I would not recommend signing up with their recommended mobile insurance company though, because you can very likely get an even better deal elsewhere if you are willing to shop around. You could even approach the same company and get a better deal! This is because an insurance company would have to pay your mobile company a commission for referring you, whereas if you approach them directly it would cost them much less to provide you the insurance, and therefore you get the savings passed on to you in your mobile insurance deal.

When You Don’t Need A Mobile Insurance Policy

Does that mean that everyone should get a mobile insurance policy? No, you should only get it if you fulfill certain criteria. For example, if you’re using an old phone that isn’t worth much, then you don’t need mobile insurance. If you weigh up the costs versus the benefits, it would cost you a lot more to pay the premiums and the excess even for a few months than it would for you to self insure your old phone. Self insuring means that you still set aside some money each month to cover yourself in the event that you need to replace a lost phone. You could even get a used model replacement from Ebay or Amazon and save yourself even more money!

If you have a very good home and contents insurance, they may cover your mobile phone as well even if it is outside of your home. Of course, not every insurer will provide this, so you should check with them and ask them explicitly if they would cover it or not. If you are not covered, you could always request a quote as an existing customer for a new mobile insurance policy with them, and get a better deal this way. Most insurers will be happy to package it as part of your overall insurance deal, after all it is additional business for them.

What Is The Level Of Cover of Mobile Insurance

The terms of any mobile insurance policy can and will vary greatly between different insurers, so it’s important to shop around to get an idea of what is out there. You can often use this as a bargaining chip as well to get them to introduce certain favorable terms into the policy for you, simply by referring to a better deal you were offered elsewhere. Be sure to get cover for damage, loss and theft, as these are the essentials. Make sure that if you make a claim, your excess is not exorbitant, and that you will get a like for like replacement or at least a full reimbursement of the value of your phone. It’s good to get fraudulent call cover as well, so that you are protected from a thief making calls from your stolen phone and racking up a big bill of long distance charges.

The Verdict On Mobile Insurance

All in all, mobile insurance is not something that you want to try to save money on, because it’s definitely worth getting it for some of the newer and more expensive smart phones out there. Be sure to shop around and get the best possible deal, because it’s a buyer’s market out there right now. I have yet to meet anyone who has regretted investing in mobile insurance, and I’m confident that you won’t either.