Mobile phone insurance is often pushed hard when you’re signing up for a new deal, but do you need it? Does it make financial sense?
How much are you willing to pay for peace of mind? That’s the key question to answer when it comes to buying insurance of any kind. As that’s what insurance buys you.
The peace of mind that you’re covered should something happen.
But, with the quality of cover changing all the time, reams of exclusions and small print, it can be tough to work out whether insurance is worth it or not.
That’s especially true for mobile phone insurance.
Mobile phone insurance
Mobile phone insurance should work like all insurance. It should put you back in the position you were in before whatever happened, happened.Top of Form
Every policy is different, but it should cover some or all the following:
- Accidental damage:
Covered: Oops! Accidentally dropped your phone in the loo? Covered.
Not Covered: Deliberate smashing your handset because you’re having a bad day.
- Calls and data use:
Covered: Calls made or data used once you have reported your phone lost or stolen.
Not Covered: Calls made or data used before you report your phone stolen.
- Theft:
Covered: Someone swiped your phone while you were lost in the supermarket aisles? Covered.
Not Covered: Left it unattended at a busy coffee shop.
- Loss:
Covered: You genuinely have no idea where your phone disappeared to? Covered.
Not Covered: Forgot it at a friend’s house for the fifth time? Not their problem.
- Water damage:
Covered: Accidentally gave your phone a little swim in a puddle? Covered.
Not Covered: Decided your phone needed to come snorkelling with you? Nope.
- Malfunction:
Covered: Your phone suddenly decides to ghost you? Covered.
Not Covered: Deliberate software experiments that turn your phone into a paperweight? Nuh-uh.
- Accessories:
Covered: Lost your expensive earbuds that came with the phone? Covered.
Not Covered: Those fancy diamond-studded phone case accessories? Sorry, nope.
- International coverage:
Covered: Lost your phone on a beach in Bali? Covered (sometimes).
Not Covered: Taking your phone for a swim in the Arctic Ocean? Probably not.
Don’t be pressured in store while buying a phone. Take your time and do your research.
Not all mobile phone insurance policies are created equal. Do your checks and make sure you know what you’re buying and what’s covered and what isn’t.
Do you need mobile phone insurance?
The utility of mobile phone insurance depends on the value of the handset, how and where you use it, your financial position and how accident prone you are.
It also depends on whether you could cover it for less on your home insurance. It’s often an added extra, so check there before buying specific insurance.
Just be aware that adding a phone to your home insurance can impact your overall policy if you make a claim.
Mobile phone insurance can be useful if:
- You use a premium handset that would be expensive to replace
- You live in a high crime area known for phone theft
- You like adventure sports or being outdoors with your phone
- You’re accident prone and often drop or lose your phone
- Your home insurance doesn’t offer adequate cover or charges too much
Mobile phone insurance isn’t usually necessary if:
- You buy used or non-premium phones
- You work in an office and your phone lives on your desk
- You’re usually careful with your items
- Your home insurance offers adequate cover
You may or may not fit into one of these categories. If you do, great. If you don’t, you’ll need to assess your own risk and make an informed decision.
Buying mobile phone insurance
If you do decide to buy phone insurance, perform the same due diligence as you would car insurance or home insurance.
- Check the type of cover and amount before shopping
- Check it isn’t cheaper and easier to add it to your home insurance
- Compare deals on multiple comparison websites
- Make sure to fully understand what’s covered and what isn’t
- Pay particular attention to exclusions and policy excesses
Do you need more insurance?
Only you know whether you need phone insurance or not. For most people in most situations, it’s unnecessary.
But, if you prefer peace of mind or are particularly clumsy, it might be a worthwhile expense.
Shop around, compare policies carefully and buy the best policy for you and not just the cheapest and you could still save money on buying a policy from a phone shop.
