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Mobile Phone Insurance: Be sure to shop around

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Mobile phone insurance is fairly common nowadays and with the majority of us having smart phones that can cost upwards for £500, taking out insurance for something we use daily and rely on for just about everything, is a wise move. However with the Financial Ombudsman dealing with over 600 complaints about mobile phone insurance in just one year, shopping around for the best deal and ensuring you have the right cover for your needs is essential.

Can you live without it?

Our mobiles are more than just phones, they are our diaries, camera’s, photo albums, sat nav’s, our hand held mini laptops. It’s easy to accidentally drop your phone, scratch the screen or send it for a swim down the loo by mistake and you realise how much you rely on it everyday when it’s not there. If you don’t have insurance you can either use an old or cheap replacement while continuing to pay the expensive monthly contract for a phone you no longer have, or you face forking out a sizeable sum to replace like for like. In theory, insurance should cover you for these accidents and provide you with a new phone. If you pay around £12 per month insurance, plus the compulsory excess making a total of around £720, you will have more than covered the cost of a new phone and therefore no quibble from the insurance company right? Well not always!

Problems with insurance companies

There has been an increasing amount of insurance companies sending out second hand or refurbished phones as replacements. Phones which are clearly not in perfect physical condition and after a few weeks start to freeze up or run out of battery and simply not fit for purpose. Many companies are also becoming more specific about the information you need to provide in order to claim. In the case of theft, most will want a crime reference number which means reporting it to the police and in cases of accidental damage, companies will want to see evidence of the damage which can be a little difficult if it dropped out of you pocket while on the back of a motorbike on a busy motorway!

Read the small print

mobile phone insurance

When shopping for insurance, the cheapest isn’t always the best option. You must read the small print and check what is covered and what excess you need to pay. If you have a relatively cheap phone, there is no point getting insurance where the excess is more than the cost of a replacement phone. You should also check with your bank or home insurance as bank accounts and existing insurance policies often cover mobile phones or can add them for a small additional charge.

You should also check what is meant by accidental damage. Smashing your phone because it slipped from your pocket might be covered yet letting your 2 year old use it as a hammer on the fireplace might be seen as preventable and not covered. If you’re prone to misplacing your phone, consider getting a more comprehensive cover that will insure you for loss and if you rely heavily on it and can’t live without it for a day, then comprehensive cover may also provide peace of mind if your phone breaks for any reason.

Check your make and model

Lastly, check that your model of phone is covered by existing insurance. Upgrading to a new iPhone5 which isn’t covered under your policy might lead to disappointment and anger if you need to claim and discover you aren’t entitled to a replacement, but a bit of careful price comparison and a beady eye over the small print should provide the best deal for you.

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About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

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