When phone insurance can make sense
- The phone is expensive and you could not comfortably replace it after loss, theft or serious damage.
- You rely on the phone for work, caring responsibilities, accessibility, banking or travel and need a quick replacement service.
- Your daily routine creates a higher risk of accidental damage or theft.
- You have checked existing policies and are not already covered elsewhere.
When saving the premium may be better
Insurance is less compelling when the handset is inexpensive, you have enough savings to replace it, or suitable cover is already included with home insurance or a packaged bank account. Duplicate insurance means paying twice but normally making only one claim.
Some people prefer to put the same monthly amount into an emergency fund. That money remains theirs if nothing happens, but they also accept the risk that an accident occurs before enough has been saved.
Work out the cost of one claim
Do not compare insurance using the monthly premium alone. Add the premiums over the period you expect to keep the policy, then add the excess charged when making a claim. A £10 monthly policy kept for two years costs £240 before any excess is paid.
Compare that possible cost with the current replacement value of the phone, not only its original launch price. Phones usually become cheaper over time, while a policy may continue charging the same premium.
Read the exclusions before the sales pitch
- Loss and theft: some policies cover both; others mainly cover accidental damage or apply strict conditions to unattended items.
- Excess and claim limits: check what you pay per claim and how many claims are allowed.
- Replacement device: it may be refurbished rather than brand new, and the colour or exact model may not be guaranteed.
- Reporting deadlines: theft may need to be reported promptly to the police and network, with reference numbers supplied.
- Accessories and data: cases, earbuds and the personal information on the phone may not be covered.
Protect the information even if the phone is insured
Insurance can replace hardware; it cannot recreate unbacked-up family photographs, authentication codes or documents. Turn on a secure screen lock, automatic cloud backup and the phone's find-and-erase service before anything goes wrong.
The right decision is personal, but it should be deliberate. Ask for the policy document, check existing cover and calculate the real claim cost before agreeing at the till.