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Mobile phone insurance: do you really need it?
Mobile phone insurance has been around for years, ever since mobile phones became an important part of our lives, but is it really necessary? As mobile phones become more and more expensive, the buying of mobile phone insurance has become part of the mobile phone buying process for many.
The latest phones range from £500 and up and because of this insurer’s ask us how we would feel if we were to lose or break our phone or have it stolen. As the fear of being without a phone sets in, many of us sign up to mobile phone insurance policies but with the cheapest policies starting at £6 a month are they really worth it?
Here are some questions to consider before signing yourself up for an insurance policy on your mobile phone.
- Are you likely to lose or damage your phone?
Have you lost or damaged a phone in the past? Are you worried that you could do it again? Then it may be worth you purchasing insurance cover. However, if you are careful with your phone and/or you are not concerned about losing or damaging it then it may not be worth the cost to cover it.
Mobile phone insurance is not compulsory and the price does not increase based on a history of loss or damage so it is completely up to you whether you decide to purchase cover or not.
- Is your phone already covered?
Before purchasing a policy, it is worth checking to see if your phone is already covered on your home insurance or through your bank account. With home insurance, a mobile phone may be covered through the personal possessions cover of your policy, if you chose to add this when you took out your policy initially.
Personal possessions covers goods which you may carry around with you every day including handbags, wallets, mobile phones, jewellery etc. If you have this added onto your home insurance policy then you are likely not to need additional mobile phone insurance.
Also many paid for current accounts offer insurance extras such as mobile phone cover, car breakdown or travel insurance. If you pay for your bank account check out the perks that you get, as your mobile phone may already be covered for loss, damage and theft.
- When did you initially buy your phone?
With many insurers, if you initially purchased your phone more than six months ago, they are unlikely to offer you an insurance policy. For the major network providers, their cover is usually only offered to you for 28 days after purchase, after then they are likely to withdraw their offer.
If your phone is over six months old and you can’t find insurance cover at a decent price, it is could be worth adding personal possessions cover to your home insurance policy. However, this will increase the cost of your policy and you should be aware of a potentially higher excess and the loss of no-claims if you lose or damage your phone.
- Can you self-insure?
Instead of taking out an insurance policy, it may be more beneficial for you to set aside some money each month which can be used to pay for a replacement phone should you lose or damage your current one. This can be a great option for people who rarely lose or damage their phone as it provides them with something to fall back on should the worst happen.
However, it may not be the best option for everyone and it is worth doing your research before opting for this method. You will need to be able to find out how much you should be saving and you can do this by searching auction sites for similar phones or by getting in touch with your contract provider who can tell you how much they would charge for a replacement phone.
- Always check your policy?
If you do opt for mobile phone insurance, you should always check your policy and be aware of exactly what it covers. Some policies will cover you for everything whereas some may only cover you for theft. A policy should ideally cover you for damage, loss, theft and ‘liquid damage’ (spilling water on it or dropping it down the toilet).
Always check a policy before signing up and if you have any issues with the service or the policy, make a complaint to your insurance provider. If this is not dealt with in a timely or appropriate manner, then you can escalate your complaint to Cisas or the Communications Ombudsman Service.
References and further reading
Content image – techcabel.com