Smartphones are not just a useful tool to have in your pocket these days, but an integral part of our lives where we expect to be able to find directions to a new location, group chat our friends, send money, or take photos 24/7. When your phone is lost or stolen, it feels like you’ve lost a limb – but is mobile phone insurance the right option for you?
Insurance all comes down to risk – if you lose your phone do you have the money available to pick up a new one instantly, or will it send your bank balance into the red? By taking out insurance you are essentially paying a small monthly fee to pass the risk of losing your phone onto the insurance company. There is cheap mobile insurance and more expensive mobile insurance, but the premise is the same – the insurer will be the ones to fork out for a new device if yours goes missing (after a small excess fee).
Is mobile insurance for you?
If you are a fan of the latest gadgets and have picked up the latest iPhone or Google Pixel for upwards of £500, then to replace it after a loss or theft is going to be very expensive. Paying just a fiver per month can put your mind at rest that if something happens to your phone, it will only cost you the excess of £50 or similar to get a replacement – much better than a £500 bill when you least expect it.
Alternatively, if you have a budget phone like a Motorola G4 or something even cheaper, then it may be that it might be a better bet to not fork out the monthly fee and just buy a replacement for £120 (possibly second hand or refurbished for a further discount).
The annoyance of losing your phone and connection of the digital world may be the same for a budget or flagship smartphone, but the hit to your bank balance is very different. Losing one may cost you your rent check, while the other might mean three or four more nights staying in next month.
Bundled insurance
Some premium bank accounts and other subscription services bundle mobile phone insurance into their monthly fee alongside other services like roadside assistance and travel insurance. These bundles could work out cheaper for you if you make use of all the services or are paying for your account anyway, but as with any insurance it is always worth checking the small print to see the level of excess and the maximum value of the phone they will replace.
If you don’t travel abroad that often, then it may be cheaper to pay for your travel insurance on a per trip basis and buy your mobile phone insurance separately – you need to find the right balance for you.
Photograph by Warren R.M. Stuart