Is it worth having phone insurance?

Have you ever wondered whether phone insurance is worth it? New flagship devices from Apple and Samsung cost a pretty penny and us brits have a history of dropping phones. If this sounds like you this article may be just what you need. This page covers all the basics allowing you to make the most informed decision and some alternative things you may not be aware of.

1. Do I need mobile phone insurance?
2. What does mobile phone insurance cover?
3. What does mobile phone insurance not cover?
4. Price of mobile phone insurance?
5. Alternatives to mobile phone insurance

KEY FACTS

• Insurance doesn’t always cover unattended theft
• Phone excess charges
• Some insurance companies won’t cover you for water damage
• You might not get a new replacement phone
• Under 18’s sometimes cant get cover

Is phone insurance for me?

You should consider buying mobile phone insurance if you meet any of the following conditions:

• In the last 12 months you have lost, had stolen or broken your mobile phone.
• Purchased one of the latest flagships devices such as the iPhone 12, Samsung or Samsung S20 Pro and committed to a fixed 24 month contract.
• Should the worst happen, you couldn’t afford to replace your device
• Your phone and is functionality is essential for work

What does mobile phone insurance cover you for?

Phone insurance can vary a lot from policy to policy but at the very least you should be covered for lost, stolen or broken.

Additional insurance policies also offer cover for:

• unauthorised calls
• accidental damage
• phone accessories
• protection while abroad, as well as in the UK
• apps, games, music and other valuable content.

But policies vary widely, both in the cover they offer and their ‘exclusions’ (things you’re not covered for, this is where it gets interesting).

What does mobile phone insurance NOT cover you for?

Here are some of the main exclusions that can appear in a policy:

Carelessness – Very subjective

You’re late for work and in a rush, maybe you leave your mobile phone on the roof and drive off, you’re covered right? Well it appears not always!

Your insurance company might not pay the claim on the basis that you didn’t take reasonable care.

Theft while unattended

This was a surprising one for us as it’s the main reason to have insurance. If you leave your phone on a table in a cafe and it’s not there when you go back, chances are you probably won’t be covered, seems strange as we have home insurance to protect us against burglaries.

Check your policy wording or ask your insurance company for clarification.

Delays in reporting your phone lost or stolen

Don’t delay, make sure you report your phone as stolen or missing  as soon as possible!

You may not be covered – for the phone itself or for unauthorised calls and downloads – if you leave it more than 24 hours (or 12 hours for some insurers).

Water Damage

Water damaged phones 9 times out 10 will inevitably fall under the category of not taking “reasonable care” in your policy. So If you’re prone to dropping your phone in the loo or leaving it in your jeans while they go through the wash be careful and read the small print!

Insurance may not provide you with a new replacement phone

At Mobile Screen Fix we see this a lot as we get the pleasure of opening up lots of phones.
If your phone is damaged or develops a fault, in the majority of cases insurers will try to have it repaired by companies like ours or provide you with a refurbished phone rather than giving you a replacement.
In either case when dealing with insurance claims this process can take up to 7 days from the day of reporting to having your device back, so be prepared to be without your device.

Under 18?

If you’re looking to insure your teenage son or daughter’s phone, you might struggle to find cover for them if they’re under 18.

How much does mobile phone insurance cost?

Mobile phone insurance isn’t cheap with rising costs of the new flagship devices. The cost of mobile phone insurance depends on things like the phone brand, model and the level of cover.

Premiums for mobile phone insurance can be as much as £14.99 a month, which can equate to  nearly £360 over a two-year contract. It’s also keeping in mind with almost every insurer there is an excess to pay per claim which can be as much as £60.

It is however possible to get phone issuance for as little as £5 a month but as previously mentioned it’s well worth checking all the T&C’s beforehand as you will probably find the policy is not as comprehensive as you first thought.

An alternative to mobile phone insurance.

Project your device with a case
I know they look amazing but when purchasing a new phone ensure you get a good case! For advice on this we wrote a comprehensive article here: Best Cases for my Phone. This is your first line of defence and will cost around £25 for a good one.

Phone Insurance Alternative
Now for the insurance element. If you are mainly interested in phone damage cover we would recommend Self-Insurance. After all, any theft may be covered by house or car insurance. If however you have a tendency of losing your phone this may not be the option for you.

This is where you set aside a small amount each month to cover you should you ever need it. Putting away just £5 a month (the price of a coffee and sandwich) will soon add up. Once you’ve built up a fund, you’ll have the money to replace your phone if you ever need to or any other unexpected costs.

Having compared several insurance policies, the cheapest premium we found was £5 a month. This would bring the total amount payable to £120 + a £60 claim excess. So over 24 months you could be paying a whopping £180 should you damage your device. It’s also worth keeping in mind that this is a budget policy and probably doesn’t cover you for everything discussed earlier!

As of writing this article the majority of phone insurance claims are for broken or cracked screens. At Mobile Screen Fix the latest iPhone XS Max can be repaired for £130 and this is completed on your driveway in one of our mobile tech centres leaving you with little to downtime.

Pros and cons of self-insurance

• If you don’t lose or break your phone, the money is in your bank account rather than the insurance company’s.
• You might lose or break your phone before you’ve saved up enough money to cover a new one.
• One of the biggest expenses when a phone is stolen can be unauthorised calls to premium rate numbers made in the period before you report the phone as stolen to your network provider – you’ll have to pay for these too.

If you do decide to self-insure, make sure you put the money into a savings account where you’ll be able to access your money quickly.

Thank you for taking time to read this article and if you ever need your phone screen repaired quickly don’t forget to get in touch, stay safe.