19 Mar Do You Really Need Mobile Phone Insurance?
If you’re in the market for a new mobile phone contract or if you plan to upgrade to a better and more expensive phone, chances are high you’ll be asked to buy phone insurance along the way. While good phone insurance ensures your phone, the real question to ask is whether you really need it or not.
Keep in mind that getting phone insurance means another monthly obligation you need to worry about. But it does come handy on certain circumstances. You just need to make the right decision in order to make that additional expenses count. To help you get it right, here’s when mobile phone insurance makes sense:
When to Consider Phone Insurance
To understand the import of phone insurance, let’s say you may only have paid £200 for your latest phone. Unfortunately, you needed to replace it before you can take advantage of a subsidy from your carrier. Because you are not eligible for a subsidy, you may end up paying more than £600 for the replacement. This is when phone insurance may have helped.
In other words, paying a monthly fee for phone insurance is worth considering if:
- You have an expensive smartphone you just bought or as part of your mobile phone contract.
- You have lost or broken phones before.
- You don’t have the money to replace the handset in case it gets lost or gets broken.
- You use your phone for most of your communication and you cannot afford an instant replacement in case it’s lost or damaged.
When to Forego Phone Insurance
Conversely, there are instances when phone insurance becomes just another expense that you don’t really need. Below are cases when phone insurance may not be a wise investment:
- You have an old handset with a value that has already depreciated significantly over time.
- You have no history of lost or damaged phones.
- Your phone may already be covered by another insurance you already own.
What Phone Insurance Covers
If you think buying phone insurance is a worthy investment for your case then here are some of the basic covers you can expect:
- Accidental damage
- Protection in the UK and while abroad
- Phone accessories, apps, games and music among other valuable contents
- Calls that are not authorized
Above is the general coverage for basic level phone insurance. It may vary from one policy to another though not always significantly.
What Phone Insurance Do Not Cover
As for the exclusions, here are the main ones to keep in mind:
- If you are careless and you damaged your phone along the way, your insurance company will not cover your claim.
- If your phone was stolen without force, don’t expect coverage either. Some companies may pay for theft without force but most will not. Make sure you know exactly what’s included in your coverage.
- If your phone was stolen while unattended, your phone may also not get covered. Again, double check the terms and conditions of your coverage to make sure.
- If you accidentally left your phone behind in a public place, a taxi or anywhere for that matter, the insurance company may not pay you for that either.
- If you delay in report a lost, stolen or damaged phone, you may also put your coverage at risk. Make sure you report any incident as soon as you can.