Mobile phone insurance covers you for damage to your mobile phone, or theft of or accidental loss of your mobile phone.
You can buy mobile phone insurance through: your mobile phone provider; an insurance provider; or it can sometimes be included as one of the benefits provided with a packaged bank account.
Unlike most types of insurance, the cost of mobile phone insurance does not depend on age, gender, your job or any other factor. It generally does not take your claims history into account or how expensive your handset is, so the cost of a policy with a particular provider is usually the same for everyone.
Key things to think about when considering taking out mobile phone insurance
Check first whether you may already be covered under any contents insurance policy that you have, this may cover personal possessions (such as mobile phones) that are taken outside of the home against loss, theft or accidental damage.
If you are not already covered, you may be able to add it on for a smaller amount of money than buying mobile phone insurance separately. Always make sure that you check the terms and conditions, particularly in relation to theft cover when left unattended and the amount that the policy would pay out.
If loss or damage to your mobile phone is not already covered by a contents insurance policy or a packaged bank account, the decision on whether you should take out this cover may be based on what sort of contract you have, how expensive and personally valuable your phone is, and how likely you are to damage or lose it.
Shop around and always compare what is covered by a policy, not just the price. Some policies may be cheaper than others, but may not offer the same level of protection. For example, some insurers’ policies may provide you with the same model of handset as the one that was stolen, lost or damaged, while other policies may only give you an equivalent one.
Precautions you can take
Don’t leave your mobile phone unattended, keep it with you or out of sight.
Back up any important information that is stored on your mobile phone. It is often the information on your mobile phone that is personally valuable, rather than the handset, so make sure that you have a separate copy or record of all of your important phone numbers and any texts or other data that is important.
Make sure that you check the theft restrictions and what you are or are not covered for.
Always report the loss or theft of a mobile phone to your insurance company promptly, otherwise your cover may be invalidated and you might not be able to claim.