According to Home Office statistics over 2 million phones are stolen every year in the UK alone and over 4 million lost or damaged. The likelihood of something happening to your beloved mobile is very much on the increase. So if the figures are enough to spur you into taking action to protect your phone what sort of things should you look out for?
Contract Phones
If you have a monthly contract phone and don't have insurance, you may find that you are liable to keep paying the line rental for the remainder of the contract term or replace the phone out of your own pocket. The cost of a contract phone is spread out across the lifetime of the rental agreement. So although you may have received a free phone as part of your contract the handset could actually be worth several hundred pounds, depending on the make and model. Lose your prize iPhone two months into an eighteen month contract and you could be looking at £300 - £350 to replace it.
Will I be covered by my Home Contents Insurance?
It is always worth checking your home contents insurance to see whether items such as gadgets and mobile are covered. Most policies will allow you to add cover for items whilst they are away from your home and protect them against theft, loss and accidental damage. Check with your insurer in the first place and be aware of the excess charges and how you might be reimbursed in the event of a claim.
Do I need cover for a Pay As You Go Contract ?
Most mobile phone insurers will cover Pay As You Go mobiles as well as contract phones. However, because you do not have the cost of the contract term to worry about you may want to think again about buying cover. If you have invested in the latest top of range mobile and you want that extra peace of mind then it may be worth having.
Can I get Mobile Insurance for Free?
Given the current economic climate, there are lots of deals to be had when buying insurance cover for your phone. Some phone providers offer bundled packages as part of your phone purchase (but they are often not that competitive). Barclays Additions Active account has lots of extras including RAC breakdown cover, travel insurance and mobile phone insurance. At £14 per month you get up to £680 of annual benefits.
Similarly Lloyds Bank offer cover for mobiles as part of their Silver, Gold, Platinum and Premier accounts. Registration of your phone applies as well as a minimum monthly account fee.
What will I be covered for?
Most policies will cover you for accidental damage and loss, but check the small print for exclusions such as water damage or leaving your phone unattended. Fraudulent Call Cover can be a lifesaver, especially if someone steals your mobile and runs up and extortionate bill calling abroad or premium rate lines. Normal wear and tear is normally not included.
Specialist Mobile Phone Insurers
There are a growing number of specialist mobile insurance companies that offer very competitive deals. Some of them will guarantee repair or replacement within 48 hours and even allow you to insure more than one phone or gadget at a time for a small additional premium. Make sure they are FSA regulated and have offices in the UK that you can contact if you need to make a claim.
What happens if my phone is stolen?
If your mobile does go missing :-
- Call your network provider as soon as possible and ask them to block your phone.
- Register your loss with the Police and ask for a crime reference number.
- You will need this number to pass on to your insurance provider
Mobile Phone Insurance Claim
It's never fun to be left waiting on hold, but it's even less fun when you're waiting for your mobile insurance provider to settle your claim. If your phone goes missing or is damaged, you want a replacement mobile now if not sooner. Good mobile phone insurance can help there - but how do you choose the best cover without spending more than you should?
Why You Might Need Mobile Phone Insurance
While you may have got your phone free when you signed a contract with your mobile provider, replacing it won't be quite so easy or cheap. Unless you have a good insurance policy, you could be paying full price to replace your handset - and if you've had the latest model with all the bells and whistles, that could be a substantial outlay.
Will You Need to Replace Your Handset?
A mobile phone is stolen every 12 seconds in the UK, says Halifax home insurance. That's a lot of mobiles going missing. But mobile phone insurance doesn't only insure you against the theft of your handset. If you leave it behind in a taxi or drop it down the gutter on the roadside, you could be eligible for a replacement with some policies. Mobile insurance for your handset will nearly always cover your loss as long as you can provide either parts of your phone or a police report of its theft.
There is an even more compelling reason for having mobile cover, though. Between the time your handset is stolen is lost and the time you report its theft to your mobile service provider, a thief can run up hundreds of minutes in overseas calls for which you may be responsible. Most handset insurance will cover the cost of those calls so that you don't end up paying for someone else's conversation.
Do YOU Need Mobile Phone Cover?
Insurance for your handset will cost you ?28-75 annually, depending on whether you choose to purchase cover from your provider or standalone insurance. You might also look into your home contents cover to find out if it includes your mobile phone, or whether you can add it for less than standalone insurance will cost.
Before you decide to if mobile insurance is right for you though, ask yourself these questions:
- How much will it cost you to replace your handset at full price?
If your annual premiums are close to the cost of replacing your handset, you might do better to bank the cost of your premiums against the possible loss.
- Are you clumsy?
If you're likely to drop your handset in the loo, insurance may be worth the cost.
- Do you need the latest and best?
- How much of a necessity is your phone? If you count on your handset for work reasons, for example, insurance will be well worth the cost.
Where Can You Get the Best Deal?
There are a number of different options for insuring your mobile. The most popular sources of mobile cover are:
- from your mobile service provider
In most cases you'll pay about ?5-6 per month on your account for handset cover. Check with your provider to find out exactly what is covered.
- from a standalone insurance provider
You may be able to purchase a policy for about ?32 annually - about half the cost of insuring through your provider. Shop around for the best deal.
- a combo policy through a standalone provider
These policies may be available from your home insurance provider. Sometimes called portable electronics policies, they can provide cover for all of your portable electronics and communications devices, including your MP3 player, your PDA, your mobile handset and even your laptop.
As with any insurance, don't just use price to measure the suitability of different providers. Take into account policy features and reviews from existing customers who have claimed.
Both David Lakins & Simon Christopher are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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