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