Mobile Phone Insurance

Deciding whether or not to take out insurance on your mobile phone mainly depends on the value of your handset compared to the cost of the policy.

If you're prone to misplacing your mobile phone, or feel that you want protection against theft, there are a number of policies available to help protect your phone.

Mobile phone insurance is now offered by numerous networks and independent insurance providers, although be aware of haggling sales advisors who will try their very best to convince you to take out insurance whether you want it or not.

You can get insurance from either your network provider, or from an independent provider. There are pros and cons to both possibilities and the key is to decide which deal is most suitable for you.

If you take out insurance with your network you have the advantage of placing all costs under one umbrella and knowing that if anything goes wrong a new phone can be supplied with relative ease. On the other hand, independent insurers could offer a wider range of cover options.

In addition, a 'like for like' policy may be offered by an insurance provider in that if you lose your mobile phone it could be replaced with another second-hand model of the 'equivalent specification'. Other providers could offer a new mobile phone as a replacement for your old one.

The cover options that are worth exploring are:

• Theft
• Accidental damage or loss
• Airtime Usage – The majority of companies will place a ‘lock’ on calls after the phone is stolen, but your airtime (inclusive minutes) could be used in the meantime. Costs vary between providers.
• European cover – Coverage for phones lost/stolen in the EU.
• Number of phones – The number of mobile phones that can be covered with one insurance policy.

Insurance for your mobile phone can cost between £25 and £100 each year. Mobiles can be added to your home insurance, but this is only useful in the event of burglary, after which the stolen items will take some time to be replaced. Specialist handset insurance usually leads to a much swifter settlement.

If you happen to lose your phone:

• Report the loss to police immediately
• Contact your service provider (your number will be barred via remote control and the handset will be locked).
• Be prepared for a delay in receiving your replacement phone/cash if the police decide to investigate the loss of your phone by viewing CCTV footage of the crime scene.