It seems that almost everybody has a mobile phone these days, and ownership of smartphones in particular is rising every year. As a consequence, mobile phone theft, loss and damage is also on the rise. Estimates suggest over two million phones are stolen in the UK every year, and a further four million are lost or damaged.
If something happens to your phone and you’re not insured, you’ll have to buy the replacement, and if you’re on a monthly contract, you’ll still be liable to pay the line rental for the full length of the contract.
If you already have home or contents insurance, check your policy. You might find that valuable items like your phone are covered both in the house, and away from it. If not, personal possessions cover is sometimes an added extra, so you should check if it can be cheaply added to your existing home or contents insurance policy.
While home insurance might replace a stolen phone (minus an ‘excess’ charge), it will not cover the cost of calls made by the phone thief. A savvy thief will make long calls to a premium number that they own. They will be paid a commission for the call and you are left with the bill. Be sure to call your provider and lock your phone as soon as you realise it is missing.
A good mobile insurance policy will cover the replacement of your phone (minus an excess) if your phone is lost, accidentally damaged, or stolen, and will pay for any fraudulent calls made by a third party.
As with all insurance, it’s best to compare quotes using online comparison engines before choosing your policy – that’s how to save money. Be sure to check the specific differences in terms, not just price. It’s also worth approaching your network or contract provider directly, as they will often tie-in insurance to their contract package deals. Be sure to have compared prices to other providers before confirming.
Even though it doesn’t usually cover fraudulent calls, insuring your phone through home contents insurance is usually the cheapest way to protect its worth. Whether you need specific mobile phone or personal possessions insurance depends on the cost of your phone and the cost of the policy plus the excess. If you are very careful with your phone, and the insurance is more than you want to pay, you might not need it. If you have lost or broken phones in the past, and you are good at money management, perhaps it’s better safe than sorry.