Mobile Phone Insurance May be Covered by Contents Insurance
If you are thinking of buying a new mobile phone then the chances are that you’ll be tempted to buy an insurance policy, but do you need one ?
Many years ago the cost of mobile phone insurance was completely free and included in the price of either your handset or your monthly contract but of course life moves on and you’ll be charged a premium for mobile phone insurance which can come at a high cost. But do you need it ?
Your mobile phone may already be covered by other insurance policies
Almost everyone will have a house contents insurance policy and these will cover all things in your home if you have a burglary or water damage and that is likely to include your mobile phone. Certainly it is likely to be covered against:
- loss due to a fire in the home
- loss due to burglary in the home
- loss to to water damage
However for most general terms it won’t be covered outside of the home although most insurance policies offer you optional cover for this. It’s also not likely covered for accidental damage in or outside of the home (such as dropping it on a pavement, a mugging or by simply spilling a cup of tea or coffee over it). But you may be covered for these if you have taken out optional cover for electrical goods so it’s wise to check your insurance policy documents that your insurance company would have sent you, or download them online from your insurer’s website or simply give them a call to see if your mobile phone is already covered.
You may also have insurance from a bank or credit card company if you are a subscriber to some of the premium services that are offered in the way of “clubs” where a ton of extras are thrown in for “free” which often includes travel insurance but can sometimes include insurance for mobile phones. So think about all the clubs and schemes you are in and check those documents as well as you may already have insurance for your telephone.
If you don’t have a policy what should you do ?
Firstly if you are offered a policy whilst you are buying your phone in a shop then it’s always best to both:
- negotiate with the sales person as you can almost always get the price down there and then
- check the terms for the excess you’ll have to pay and exactly what’s covered (sometimes you’ll have to send your mobile phone away to get it repaired which really is not worth having as this can take weeks to solve – and some excess payments actually make the insurance not worth having in the first place)
- check for accidental damage cover as generally these result in most claims and this cover may cost an additional premium
If you lose your phone and on a monthly contract you’ll still need to keep paying until you get to the end and although you can buy a sim free phone to replace the one you lost it might not be the one you want. Really the insurance is only worthwhile if you have an expensive phone like an iphone or blackberry but you should make your own decision on what is right for your circumstances.
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