How Does Mobile Insurance Work?

Mobile phones have become something of a necessity in modern life with most of us rely on them more than anything; however, this often leaves them prone to damage, loss and even being stolen, which could cost you hundreds of pounds of you needed to replace it, especially if you don’t have phone insurance.

Whether you’ve got an expensive phone that would be costly to replace, you’re a little accident-prone or if it were to become lost or stolen, you should certainly consider purchasing mobile phone insurance to ensure you’re fully covered should anything happen to your device.

So, what is mobile insurance and how does it work?

Mobile phone insurance is a specialist type of insurance policy that covers to cost of replacing or repairing a lost, stolen or damaged phone. You can get separate cover for each mobile phone you need to protect, or some insurers offer multi-device cover. This lets you insure your whole family’s phones under one policy.

Mobile phone policies usually have a lower excess than most other contents insurance policies, typically around £50. Cover varies between providers but most policies with cover some or all the following extras you wouldn’t find on standard insurance policies. These include;

    Loss or theft

    Accidental or malicious damage

    Worldwide travel

    Unauthorised payments

    Mechanical faults or breakdown

    Broken buttons

    Water damage

    Cracked screens

    Accessories loss or damage

To take out mobile insurance there are two main ways to do it. Either by insuring directly with your network provider or phone retailer or through companies that offer specialist mobile phone insurance policies.

There may also be certain criteria you must meet to be able to be eligible. Criteria such as; You must be 18 or over to take out a policy or your phone must be less than six months old at the point you sign up for insurance. You may also find that there are regulations on phones purchased second hand or bought outside of the UK.

It is also worth checking if you are already covered. In some cases, your phone may be covered by contents insurance or through your bank. However, check whether that cover is suitable. You may find you are not suitably covered for your needs.

Whichever policy you decide to choose, make sure it has all the cover you need. When looking to take out a policy, there are some key questions you need to ask yourself;

    Is my mobile too old to get cover?

    Do I have immediate cover once taking out the policy?

    Is there a claims limit for the year?

    What excess am I expected to pay?

    Am I covered for unauthorised payments, calls, messages or downloads?

    Am I covered for theft, loss and accidental damage?

    Will I be covered abroad?

By asking yourself these questions you can be prepared and understand what to expect when it comes to mobile insurance.

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