Mobile Phone Insurance

Most people are penny wise and pound foolish when it comes to getting mobile phone insurance cover. In fact, there are many people out there who would even advise you not to get it at all! Now, while this may be good advice if you have an old phone that is only worth a hundred or so pounds, if you’ve got a brand spanking new iPhone 4S then you’d be crazy not to invest a few GBP each month to insure your phone against loss, theft or damage. Otherwise, you may be locked in for the next two years into an expensive contract and still paying for your lost or stolen phone every single month.

Most mobile phone insurance policies only cost between £5 – £10 a month, which is only between sixty to a hundred and twenty pounds a year. That’s a mere fraction of the cost of most of the new phones hitting the market today. Sure, you could self insure these phones, but doing some simple number crunching will tell you that the risk is huge. In the UK alone, a phone is stolen every 12 seconds, and in the US it’s even worse. And that’s not including all the accidental mishaps that may happen, for example if you were to drop your phone from a significant height, leave it in the taxi and forget about it or have your young child use it as a toy. If you happen to be uninsured when one of these things happen, then you’re going to seriously regret not getting mobile phone insurance.

How Does Mobile Phone Insurance Work?

Generally when it comes to mobile phone insurance, while there are certain differences between policies offered by different insurers, they all follow the same model. You pay a certain fixed amount each month to cover your phone, normally between £5 – £10, and you will be entitled to a certain level of protection depending on your policy. The level of cover offered by different insurers can vary immensely, so it really pays to shop around. Some mobile phone insurance policies will only cover repairs to damaged phones, while others will cover the replacement of your lost or stolen handset, and some will even reimburse you the full value of your phone if it gets stolen or goes missing.

When you make a claim, you will also be required to pay an excess fee of anywhere between £50-£200. Normally the claim will specify a certain level of proof that you will need to provide with your claim as well, like a police report or an official statement of how the phone was lost or stolen. Obviously, they can’t just pay out every claim just like that, because there are some dishonest people who would take advantage of the system and make repeated claims while selling their “lost” phones to someone else.

The Benefits Of Mobile Phone Insurance

The one obvious benefit of mobile phone insurance is that you are protected from any unexpected events like theft, loss or damage to the phone. These things do happen, and they happen much more often than you think. Unfortunately, most people only realize the need and the value of mobile phone insurance after such an event has occurred, but you can save yourself from regret by doing the smart thing and investing in the proper insurance now. These days, as the functionality of mobile phones increase, so do their prices. Many of the latest smart phones can set you back anywhere between £500 – £1,000 brand new, and slightly less if they are used. Compared to the £60 – £120 that you would be paying in mobile phone insurance each year, and even including the £50 – £200 you would pay in excess, that’s a huge difference.

Another little known benefit of having mobile phone insurance is that certain policies do cover other damages as well, including the cost of phone charges racked up on a stolen phone. There have been many cases of thieves adding insult to injury by racking up hours upon hours of long distance calls on a stolen phone, and if you’re not covered by insurance you’d have to foot the bill. On the other hand, if you are covered, then you won’t have to pay for these call charges as the insurance company will cover it as part of the policy.

Is Mobile Phone Insurance Right For You?

If you’re considering getting mobile phone insurance right now, there are a few things that you should consider before taking out a policy. Obviously, the first thing you’ll need to weigh up is whether it’s actually worth it to insure your phone. Knowing the cost of most policies, your phone should be worth at least £400 – £500 for you to consider taking one. Otherwise, you’d be better off self insuring and buying a similar used model off Ebay. Another thing that you need to keep in mind is that not every mobile phone insurance policy was created equal. The terms of each policy can vary quite drastically between insurers, so it’s best to shop around and not be pressured into making any decisions before you get the full picture of exact what is covered and what isn’t.

You can often get an even better deal by going through an independent mobile phone insurance provider instead of signing up through your mobile phone company. The reason for this difference in price is that the insurer will have to pay a commission to the mobile company for referring their mobile phone insurance policy, whereas there’s no additional cost to them if you go right to them. In effect, they’re passing on the savings to you in your mobile phone insurance policy.

The Verdict On Mobile Phone Insurance

With all things considered, mobile phone insurance is not for everyone. That said, if you meet the criteria of having a pricey phone and if you are prone to accidents or bouts of absent mindedness, then you’re better safe than sorry so you should invest in mobile phone insurance.