Mobile phones are expensive and if you’ve got one of the newest models it can set you back around £1,000. Therefore if your phone is lost, stolen, or damaged you can end up paying out a lot more if you need to replace it or get it repaired. This is where mobile phone insurance comes into play and here we explain the best way to buy it without getting ripped off.
Check if you already have cover
The first thing to do is to make sure you’re not already paying for cover. If you have a home insurance contents policy, you may already have cover for your mobile phone, and if this is the case there’s no point buying a new policy.
The cover provided through a home insurance policy will come under the ‘personal possessions’ section. This doesn’t usually come as standard and it’s something you’ll need to add to your policy, usually for around £30 - £50 extra per year depending on the insurer.
It covers expensive items when you take them out of the house usually to a value limit of around £2,500. This can include your mobile phone, laptop or camera but it’s worth checking the policy wording as in some cases you may have to tell the insurer what items are listed in order for them to be insured.
One of the down sides of claiming on your home insurance is the excess you’ll need to pay. This is the amount you’ll pay out for any claim you make, and this tends to be higher with these policies when compared to a stand alone mobile phone insurance policy.
It can also take longer for you to receive a new phone, and claiming on your policy too often can push up your overall premiums.
Mobile phone insurance should provide liquid cover
There are many insurers offering mobile phone insurance, and your phone provider will probably try and sell you a policy as well. It’s important to shop around here and not buy the first deal you’re given, as there can be quite a variety in the price given and what the policy includes.
A pro of mobile-phone insurance, which you usually pay monthly for, is that you will usually receive a replacement phone within 24 hours after you make a claim.
The excess will be smaller too so if you’re having to claim you won’t have to pay as much out as you may have to with a home insurance policy.
Take a look at the small print with any policy. You want it to cover you for loss, damage or theft and also to include accidental damage including liquid damage - such as if you drop your phone down the toilet or spill a glass of water over it.
The policy may also pay out for unauthorised calls made on the phone. This will cover you if someone steal your phone and then makes lots of expensive calls, which in some cases you will be liable for.
The small print is important to look at because some policies may specify where you had your phone at the time it was lost of stolen. Insurers in some cases expect you to show reasonable care - such as not leaving your phone unattended - in order to make a claim. If this is the case, and your phone is stolen from your bag when you weren’t with it, your claim could be rejected.
How to cut the cost
One of the easiest ways to see a lot of prices in one go is to use a comparison website. Although some insurers, such as Direct Line, aren’t listed on these sites so make time to check the quotes available with these companies too.
Check the policy wording to make sure the policy will cover you in all eventualities and then look at the price. There could be discounts available for insuring more than one mobile phone. You might also be able to get cashback on top if you go through a cashback website, such as Topcashback.co.uk, so check these out as well before you buy.