Is Smartphone Insurance Worth It?

Mobile phones and smartphones have become so common place these days that most people end up having several handsets. They tend to accumulate over the years after the annual phone upgrades and continually buying the latest handsets. It’s always a good idea to have a backup phone for those days when something happens to your main phone.

Should I Insure It?

Depending on the value of your handset you may or may not decide to insure it. It certainly is not necessary for the lower value mobile phones that would actually be cheaper to replace without involving phone insurance. But the more expensive handsets ranging from £150 to over £1000 are a different story. Replacing these handsets without insurance is going to hurt your pocket. Or you’ll just have to wait till your next free phone upgrade comes around to get your new smartphone for anything close to free.

Repair Or Replace?

It may be unfair to compare the actual purchase cost of buying a new mobile phone against replacing it with insurance, as you are never guaranteed a brand new replacement with insurance. It will be repaired instead of replaced for new, as this is cheaper for the gadget insurance company. Of course depending on the circumstances and the extent of damage to your phone, if it can not be repaired then it will be replaced. But not necessarily for a brand new mobile as there are stocks of used mobile phones that have been repaired and are in full working order. These handsets are issued as insurance replacements.

Excess Fee

So if you think that phone insurance is an easy way for you to get a brand new handset when it has the slightest bit of damage to it, then you would be very wrong. It is there as a service which ensures you will always have a working handset. If it breaks, it will be repaired if possible, otherwise it will be replaced. Not forgetting that there will be an excess fee to pay each time you need to make a claim. Normally starts as low as £50 per approved claim for the lower value handsets, but the more expensive handsets priced over £1000 will have a £100 excess fee.

Unlimited Claims

With no limit to the number of claims you can make each year on a single policy, one would think this would be open to abuse, but thinking about the claims approval process as well as the excess fee which needs to be paid each time an insurance claim is approved, these 2 factors alone are a good deterrant.

Pay For Convenience

From a convenience point of view, mobile insurance gives you a single point of contact with a company that will take care of the repair/replacement of your mobile phone if it is accidentally damaged, broken, stolen or lost. Cover for loss is an optional paid extra, but it does give you truly comprehensive cover for your most precious gadgets. A mobile phone insurance policy can save you potentially hundreds of pounds with just one single insurance claim, versus paying for the repair or replacement yourself without phone insurance.

Accessories Cover

Accessories cover is also included up to a value of £150. So if, for example, your Sennheiser wireless bluetooth headphones were damaged at the same time as your mobile phone, they would both be repaired or replaced under the single claim, once it was approved. This applies to any accessory just as long as it was damaged, lost or stolen at the same time as your insured device.

Worldwide Travel Cover

If you travel a lot or even a little, the inclusive worldwide cover will be a real bonus as it covers you for up to 180 days travel in any single year, anywhere in the world. That’s almost half the year and has no restrictions on the number of times you can travel in and out of the UK. Just as long as you are a resident of the UK you are eligible to apply.

Now you could use the insurance cover provided by your travel insurance provider but that’s if you buy travel insurance every time you travel. Comparing the excess fee on a travel insurance policy when making a claim versus the excess fee on a gadget insurance policy, you’ll notice a big difference. The gadget insurance policy excess starts as low as £50 and goes up to a maximum of £100. That’s where the excess fees start from with travel insurance, £100 and upwards, so definitely a more expensive option to rely on when travelling abroad.

Phone Insurance Versus Home Insurance

You would be right in thinking that your gadgets are covered by your home and contents insurance but it’s not the same kind of cover and it actually is a lot more expensive to use on a claim for a mobile phone or tablet. In the long run atleast. It’s not just about the higher excess fee with home insurance as you have to worry about the annual premium as well. This goes up at renewal if you make a claim with them. It’s not worth wasting that on a phone. Wait for your roof to collapse or the next leaking pipe to cause water damage, then use your home insurance. That’s what it’s for.