A mobile phone is the most common and routinely used piece of consumer tech. But that doesn’t mean the device comes cheap – whether you’re buying it on a contract or not. Thanks to the frequency of use and also the fragile build of modern smartphones, mobile phones have never been so vulnerable to damage or repair. And the fact that it could be easily lost or stolen only spells more trouble. Fortunately, there are mobile phone insurance policies to the rescue. In this article, we’ll take a look at the five things to consider when shopping for mobile phone insurance.
P.S. Insurance and warranty are two different things.
The price of insurance could vary across phones. The costlier your device, the more expensive would be its insurance. The best way to save money on insurance is buying the cover from the carrier itself. Big retailers could offer insurance for cheap too. You can also save maximum money on insurance by adding your device to your house insurance. Besides the lower cost, there could be other benefits to avail too. Since there are too many insurance providers, it’s recommended to compare the various offerings. There are several comparison sites that can make your job easier.
Generally, insurance companies would offer to replace or repair your damaged or stolen phone. However, a new phone as a replacement is highly unlikely. The replacement device would usually be a refurbished or second-hand phone. There are certain insurers who may offer you cash as reimbursement, equaling the value of your phone.
Pre-existing problems with the device won’t be covered. Also, issues pertaining to data or software, damage inflicted through carelessness, routine wear, or phones already dismantled or serviced at a non-authorised service centre would fall outside the purview of insurance. Theft and loss would be covered but you probably would have to do a lot of convincing to get the insurance company acknowledge your insurance claim.
Your insurance premium could go up with your likeliness to make a claim. In other words, substantial no-claims discounts are offered. For instance, if you’ve bought insurance for a year and you didn’t make any claim in the first six months, your monthly premium may get reduced for the remaining months. However, if you file a claim within the first six months, your premium commitments could go up significantly for the remaining months. Long story short, insurance companies don’t like it if you’re reckless with your phone.
At times, your phone simply doesn’t warrant insurance. If your phone is a budget device, then it doesn’t make sense buying an insurance since it’s an additional expense you’d incur for a contingency scenario. The insurance money spent on such low-cost devices could be saved and used to buy a new phone in case you lose your current device. With an insurance, you won’t get a new device anyway even if you’re application gets approved.
Is Your Device Covered by House Insurance?
At times, your home insurance could also take your phone within its stride. In case your phone is covered by your house insurance, it would be redundant on your part to get a dedicated insurance cover for your phone. Therefore, check the items that come under the scope of your regular insurance cover.
Insurance for your phone is not mandatory. There are several people who do not insure their phones and do just fine. If you work in a high-risk environment where your phone is prone to damage more than normal, then an insurance would be worth its mettle. However, if you’re extremely protective about your device and you tend to baby it, you are only wasting money on insurance.