With so many of us carrying around hundreds of pounds worth of handsets, is it important to get them insured? Generally those of us who have expensive mobiles tend to include mobile phone insurance when we take out the contract.
You might have received a new phone from Santa this Christmas and if so have you thought about how much it woud cost to replace if it was stolen or lost?Image from dschulian
Sometimes getting your insurance with your provider may work out more expensive for you, so it is always worthwhile having a look around to find yourself the best deal. Recently banks have also started offering mobile phone insurance, which is free as well as many other extras, when you upgrade your account for a small monthly fee.
If you do have an expensive phone, then it is ideal to get the best possible coverage, for the least price. This is definitely worth it if you lose your phone, and need a replacement quickly.
It is always very important to read the terms and conditions of any contract, and in this case it will let you know what is and isn’t covered in the insurance. This is especially important if you like to change your sim, and have your phone unlocked, as this does invalidate a lot of policies.
There are many companies out there that like to ensure that you aren’t taking out a policy, simply because you have problem with your phone. In this case they usually have a cooling off period, which can be anywhere between 21 days and 40 days. If during this time you do happen to lose or damage your mobile, the company is not liable to fix or replace it, meaning you would have to fork out a small fortune.
Most policies fail to take into account your claim history, and unlike other insurance policies, mobile phone insurance is not dependent on age, gender, your employment status or your income.
Everyone is sold their insurance the same as the next person unlike car or house insurance, so those of you who never lose your phone will end up subsidising those who commonly lose or damage theirs.Image from Images-of-Money
For this reason it is important for you and only you to decide if you are one of those people that are likely to lose your mobile. How many mobiles have you lost or damaged to date? If you’re someone who really looks after your phone, and always has it religiously clipped on to you, then getting insurance may be a bit of a waste of money. Maybe getting a bank account with this insurance thrown in as well as other benefits is the way to go.
Now to pick the right solution for you:
> Are you a safe keeper?
If you haven’t ever lost your mobile or damaged it, then you may want to think about whether or not to get insurance. Even if you did lose your mobile once, or needed to get it replaced, this would still be cheaper, than all the years insurance you would have been paying.
> Do you lose your mobile phone?
If you’re on a contract phone, and you know that you’re the kind of person that will easily lose or damage your phone, then the best advice is to get comprehensive phone insurance. Be aware that even if you do lose it, but don’t want to replace it, you will still need to continue with you insurance payments until the contract period ends.
> Pay as you go customer?
With a PAYG mobile, the risk is limited. If you lose your mobile then the most you lose is the handset and the amount of credit you have it. If the phone isn’t expensive, and you don’t store much credit on it, then getting insurance may not be required. You don’t want to pay out more in insurance than the cost of your mobile and credit combined.
> Could you add your phone to your existing home insurance?
Give your insurer a call to see if you could easily include your new mobile phone on your contents policy. Take the time to think about anything else that might need adding too like new laptops or jewellery.
Before you take out insurance do consider all these factors, and then decide on the best insurance for you. Always ensure that you read the terms and conditions, and that the company will always replace or repair your mobile if lost or damaged.
Check if you need certain paperwork to prove ownership and keep your receipts in a safe place.
We’d love to know how your mobile phone insurer treats you so come and leave a review of your insurance company and share your experience.