Orlando Harmon
Mobile phone insurance is designed to protect your phone against common situations like accidental damage, theft, and loss. When you sign a mobile phone contract, you will usually be offered the option to buy an insurance policy from your provider. However, you are not required to purchase this insurance and can instead choose to insure your phone through a specialist gadget insurance policy or your home insurance policy.
| Characteristics | Values |
|---|---|
| Are contract phones insured? | It depends on the contract and the insurance provider |
| Phone insurance coverage | Accidental damage, theft, loss, mechanical breakdown, fraudulent activity, worldwide cover, unauthorised calls, cracked screen, manufacturer parts for repairs |
| Phone insurance exclusions | Phones taken from schools or other public buildings, unauthorised calls if the phone was left unattended in a public place, failure to report theft to the mobile company and the police within 24 hours |
| Phone insurance cost | Depends on the phone brand, model, level of cover, way of payment (annual or monthly premiums), and extra features |
| Phone insurance excess | Depends on the insurance provider; most policies have an excess of at least £25 |
| Alternative to phone insurance | Self-insure by saving up money in a separate savings account |
| Home insurance with phone cover | May be covered for loss, damage due to fire, flooding, or theft from home; may need to add cover for mobile as an optional policy add-on; may need to pay a high excess |
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What You'll Learn
Insuring a contract phone through a third party
When you sign a mobile phone contract, you will usually be offered the chance to buy an insurance policy from your provider. However, you are not required to purchase this insurance and you should consider whether it is the best option for you. Third-party phone insurance policies can sometimes be cheaper than the insurance cover quoted by the phone manufacturer or network provider.
When deciding whether to insure your phone through a third party, you should consider the following:
Cost
The cost of mobile phone insurance depends on factors such as the phone brand, model, and level of cover. The way you pay (annually or through monthly premiums) and any extra features included in your policy can also affect the cost. It is important to check exactly what you are getting for your money and whether it meets your needs. For example, if you need a speedy replacement handset, you should ensure that your policy includes this.
Excess fees
Most mobile phone insurance policies have an excess of at least £25, meaning you will have to pay the first £25 of any claim you make. You should compare insurance quotes by excess fees and whether or not accidental damage, theft, loss, and instant cover are included.
Exclusions
You should carefully check the small print of any policy to understand what kind of exclusions it has. For example, phones taken from schools or other public buildings are not covered by many policies. You should also be aware that many policies will refuse to pay out if you left your phone unattended in a public place or failed to report a theft to your mobile company and the police within 24 hours.
Alternatives
If you do not want to insure your phone through a third party, there are other options to consider. For example, you could self-insure by saving the money you would have spent on mobile phone insurance and putting it into a savings account to use for unexpected costs such as replacing your phone. You could also consider adding accidental damage cover for your phone to your home insurance policy, although this may increase your premium when it comes up for renewal.
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Buying insurance from your network provider
When you sign a mobile phone contract, you will usually be offered the option to buy an insurance policy from your network provider. This is the simplest and most convenient way to insure your phone. However, you are not required to purchase this insurance, and it may not always be the best option for you.
Before purchasing insurance from your network provider, it is important to consider the following:
Cost
Insurance offered by your network provider may be more expensive than other options and may not offer the best value for money. It is recommended to shop around and compare different insurance policies before making a decision. The cost of insurance will depend on factors such as the phone brand, model, level of cover, and whether you pay annual or monthly premiums.
Excess fees
Most mobile phone insurance policies have an excess of at least £25, which means you will have to pay the first £25 of any claim you make. It is important to find out the excess fee for your network provider's insurance policy and compare it with other options.
Exclusions
It is crucial to understand the exclusions of the policy. For example, many policies do not cover phones taken from schools or other public buildings. Make sure you know what is not included in the coverage before purchasing.
Alternative options
Before purchasing insurance from your network provider, consider whether your phone is already covered by another policy, such as home contents insurance or manufacturer warranties. Additionally, you may want to consider self-insuring by setting aside money each month into a savings account to cover any unexpected costs.
Value for money
When deciding whether to purchase insurance from your network provider, consider not only the price but also the level of coverage and whether it meets your specific needs. For example, if you need a speedy replacement handset, ensure that the policy includes this option.
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Adding your phone to your home insurance policy
When you sign a mobile phone contract, you will usually be offered the option to buy an insurance policy from your provider. However, you are not required to purchase this insurance and you should consider whether it is the best option for you. For instance, if you have a pay-as-you-go deal and a basic, inexpensive handset, losing your phone may not cost you much, so it might not be worth paying monthly insurance premiums.
Mobile phone insurance covers your phone against accidental damage, theft, and loss. It can also cover the cost of manufacturer parts for repairs, so you can avoid using non-manufacturer-approved parts that could prevent you from taking out insurance in the future.
If you want to insure your phone but don't want to purchase a separate mobile phone insurance policy, you can consider adding your phone to your home insurance policy. Home insurance policies provide coverage for all kinds of personal property, including cellphones. However, there are some limitations to standard contents insurance, and you may want to upgrade your policy to adequately cover your mobile phone. For example, if your contents insurance policy does not include accidental damage cover, you will only be able to claim for damage caused as a result of damage in the home, such as a fire or flood. To cover your phone outside of your home, you will need to add all-risk personal possessions cover to your home insurance policy.
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Self-insuring your phone
When you sign a mobile phone contract, you will usually be offered the option to buy an insurance policy from your provider. However, you are not required to purchase this insurance and you should evaluate if it is the best option for you. Mobile phone insurance protects your phone against accidental damage, theft, and loss. It can also cover the cost of manufacturer parts for repairs, so you don't have to use non-manufacturer-approved parts that could void your warranty.
If you decide not to purchase mobile phone insurance, you can consider self-insuring your phone. Self-insuring means that you save up the money you would have spent on insurance premiums and put it into a savings account to use for unexpected costs, such as replacing your phone if it is lost, stolen, or damaged. This way, if you don't lose or break your phone, the money remains in your bank account instead of going to the insurance company. However, you may lose or break your phone before you have saved enough to cover a new one, so it is important to consider the likelihood of these events when deciding whether to self-insure.
Another option to consider is adding your phone to your home insurance policy. This can be a relatively cheap way to insure your phone, but it is important to note that if you claim for your phone on your home insurance, your premium may increase at renewal. Additionally, the excess (the amount you must pay towards the claim) may be higher than if you had separate mobile phone insurance. Home insurance claims can also take some time to process, leaving you without a phone in the meantime.
When deciding whether to self-insure your phone, it is important to weigh the pros and cons. Self-insuring gives you more control over your money and can save you money in the long run if you don't need to make frequent claims. However, if you do need to replace your phone, you will need to have enough savings to cover the cost. Additionally, self-insuring does not provide the same level of protection against unauthorised calls or other issues that may arise if your phone is lost or stolen.
Overall, whether you decide to purchase mobile phone insurance or self-insure your phone depends on your individual circumstances and the level of risk you are comfortable with. It is important to carefully consider the options and choose the one that best suits your needs.
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Phone insurance exclusions
When you sign a mobile phone contract, you will usually be offered the option to buy an insurance policy from your provider. However, you are not required to purchase this insurance and should consider whether it is the best option for you.
- Many policies will not cover phones taken from schools or other public buildings.
- Some policies may not cover phones that are left unattended in a public place or if the theft is not reported to the mobile company and the police within 24 hours.
- Some insurance policies may not cover unauthorised calls made before you report your phone as lost or stolen.
- Some policies may exclude coverage for repairs carried out by unauthorised third-party repair centres.
- Cosmetic damage that does not affect the functionality of your device may not be covered.
- Mechanical or electrical breakdown due to gradual deterioration or internal causes may be excluded.
- Large-scale manufacturer defects may not be covered by some policies.
- Claims for theft from a motor vehicle may be excluded unless the device was out of view, in a locked and secured vehicle.
- Second-hand or used devices may not be covered unless purchased directly from the manufacturer or a reputable second-hand dealer.
- Age restrictions may apply, and some policies may not cover individuals under the age of 16 or 18.
- Additional exclusions may apply, so be sure to read the fine print of any policy before purchasing.
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Frequently asked questions
No, contract phones are not insured by default. However, you will likely be offered the option to purchase insurance when you sign a contract for your phone.
Mobile phone insurance covers your phone against accidental damage, theft, and loss. It can also cover the cost of manufacturer parts for repairs, so you can avoid using non-manufacturer-approved parts that could prevent you from taking out insurance in the future.
The cost of mobile phone insurance depends on factors such as the phone brand, model, and level of cover. The way you pay (annually or monthly) and any extra features included in your policy can also affect the cost.
Yes, you may already have coverage through your home insurance policy or you may be able to add coverage to your home insurance policy for a small charge. Additionally, you can self-insure by setting aside the money you would have spent on mobile phone insurance into a savings account to use for unexpected costs.
