Phone Insurance: Am I Covered?

Mobile phone insurance is a way of protecting your phone from loss, theft, or damage. It also provides cover for the cost of repairing or replacing a mobile phone. While some people consider phone insurance a rip-off, others find it useful, especially for expensive phones. Three offers phone insurance, called Three Rescue, which covers lost or stolen devices, but only if you have Three Rescue Full Cover. Three's insurance has been criticised for being slow to settle claims and for not providing enough money for a replacement phone.

Phone insurance is often included in your monthly bill

Phone insurance can be purchased from your phone carrier or a third-party provider. Third-party insurance providers include Progressive and Asurion, while phone carriers such as T-Mobile and O2 also offer insurance. The cost of phone insurance varies depending on the provider, the phone model, and the level of coverage. For example, O2 offers four levels of cover ranging from £3-£4.50 to £12-£15 per month, while Tesco Mobile offers four tiers of cover ranging from £4 to £12 per month.

Phone insurance typically covers accidental damage, defects, loss, and theft. For example, T-Mobile's Protection 360 offers unlimited repairs and replacements for accidental damage, mechanical and/or electrical failures, loss, and theft. Progressive's iPhone insurance plan also includes coverage for accidental damage and theft.

It is important to note that phone insurance may have exclusions or limitations. For example, some insurance plans may not cover loss or theft, while others may have value caps or restrictions on the number of claims that can be made. It is essential to carefully read the terms and conditions of your insurance plan to understand what is covered and what is not.

Household insurance may cover your phone

If you want your phone to be covered for accidental damage in the home, you will need to ensure your home contents policy includes accidental damage cover. This will protect your phone from accidents such as dropping it or putting it in the washing machine. Without this coverage, you will only be able to claim for damage caused by events such as a fire or flood.

To ensure your phone is covered outside of the home, you will need to add all-risk personal possessions cover or worldwide accidental loss of or damage cover to your home insurance policy. This type of coverage, also known as away from home cover, will protect your phone from loss, theft, or damage while you are out and about. It is important to note that some insurers may exclude protection for your phone altogether, so it is crucial to carefully review your policy to understand what is covered.

Additionally, it is worth mentioning that some mobile network providers, such as Three, offer separate insurance plans specifically for your phone. These plans can provide coverage for loss, theft, or damage to your device, but they often come with additional costs. Before purchasing a standalone mobile phone insurance plan, it is advisable to check if your phone is already covered under your existing household insurance policy to avoid unnecessary overlap and expenses.

Phone insurance covers loss, theft, and damage

Phone insurance is a safety net that covers you in case your phone is lost, stolen, or damaged. It's that simple. With phone insurance, you can rest easy knowing that you won't have to bear the full cost of repairing or replacing your device if something unexpected happens.

Now, let's break down what phone insurance covers in detail:

Loss:

Losing your phone can be a heart-wrenching experience, and phone insurance is designed to soften the blow. Most phone insurance plans offer coverage for lost devices, so you don't have to worry about the financial burden of replacing your phone. For example, Three Rescue™ Full Cover from Three Mobile provides insurance for lost devices.

Theft:

Phone theft is, unfortunately, a common occurrence. Phone insurance steps in to protect you financially if your phone is stolen. While some retailer plans like AppleCare+ don't include theft protection, phone insurance generally covers this, giving you peace of mind.

Damage:

Accidents happen, and phones can be fragile. Whether it's a cracked screen or water damage, phone insurance has you covered. Most insurance plans include accidental damage protection, so you won't have to pay the full cost of repairs or a replacement. For instance, T-Mobile's Protection 360™ covers repair or replacement for accidental damage, even $0 front screen repairs.

It's important to remember that while phone insurance provides financial protection, it's not a replacement for being careful with your device. Always take precautions to keep your phone secure and in good condition. Additionally, be sure to read the fine print of your specific insurance plan to understand the exact coverage, exclusions, and limitations.

In summary, phone insurance is a valuable safeguard against the unexpected. By covering loss, theft, and damage, it ensures that you're not left stranded or facing hefty expenses in the event of an accident or misfortune involving your phone.

You can get phone insurance from third-party providers

Asurion is another third-party provider of phone insurance, trusted by 300 million people worldwide. They offer plans for both new and refurbished iPhones and Android phones.

Allstate also offers phone protection plans. Their single smartphone plan allows for up to four claims, with a deductible of $149 per claim.

Additionally, if you buy your phone from a retailer like Best Buy, you may be able to purchase additional coverage for mechanical failure and accidental damage. If you bought your phone with a credit card, you may also have some coverage through your card benefits.

Phone insurance may not cover the cost of a new phone

Additionally, it is important to read the fine print of your insurance policy, as some policies do not cover lost or stolen phones. Even if your policy covers loss or theft, there may be a deductible and a lengthy insurance claim process involved. Furthermore, some policies may only cover specific types of damage, such as accidental damage, while others may also include coverage for liquid damage, cracked screens, or theft. Understanding what your policy covers is essential to ensure you are adequately protected.

The cost of insurance should also be considered. Insurance plans typically come with a monthly fee, and the price can vary depending on the value of your handset and the level of coverage you choose. Some insurance plans may also have deductibles, which are out-of-pocket expenses that you must pay when filing a claim. These deductibles can be significant, ranging from $50 to $200 or more, and may make it financially impractical to file a claim unless the damage to your phone is substantial.

Finally, it is worth checking if you already have coverage for your phone through other means. For instance, some homeowners' or renters' insurance policies may cover your phone in case of damage or theft. Similarly, certain credit cards may offer purchase protection that includes your phone. By reviewing your existing coverage, you can avoid paying for duplicate insurance and make a more informed decision about whether additional phone insurance is necessary.

Frequently asked questions