Every mobile phone purchase comes with the option to buy mobile insurance. The idea is simple: if your phone is lost, stolen, or broken, you can recoup the cost and get a new phone fairly quickly. Some customers feel like paying out every month for insurance is a financial burden, as they could be saving that money themselves to purchase a new phone if needed. To determine if you need the insurance, you must know how mobile insurance works, and who it benefits the most.
Mobile Insurance Facts
Insurance is available with every phone purchase, and when you renew your contract. In addition to the basic service, mobile insurance can also cover accidental damage, the value of your apps and music downloads, mobile phone accessories, unauthorised phone calls, and travel protection. You will pay a small fee each month, which would be included in your monthly mobile bill.
If something happens to your mobile, you need to make a claim to your provider right away, along with a police report if it has been stolen. Most insurance providers will require your original receipt, along with the make, model, memory size, and IMEI number of your mobile phone. When you make a claim, you may be required to pay an excess before the claim can be completed. Check with your provider to ensure that you have all of the necessary documentation in a safe place.
What Insurance Will and Will Not Cover
There are many situations that certain insurance policies will not cover, so read the fine print closely. If your phone is stolen while it is unattended, or swiped from your belongings without force, it may not be covered. You may also not be covered if you are negligent in caring for your phone by dropping it in water or forgetting it atop your vehicle. Some providers also exclude if your mobile acquires any viruses online. Make sure you understand what your policy covers, so you do not go through the hassle of making a claim that will not be processed.
There are other situations that could cause your insurance claim to be refused. Any delay in making a claim could cost you dearly, as some insurance plans only allot 12 to 24 hours before they can turn you away. If you have swapped SIM cards to bring your phone to a new carrier, your insurance could no longer be valid. Some insurance policies will not cover those who are under age 16 or 18 either.
Some policies will require that every attempt be made to refurbish or fix your mobile before replacing it. This process could last between four to seven business days. If you need a new phone right away, the delay could be too long, requiring you to purchase a new mobile anyway. You may be able to find policies that offer rapid replacement of your mobile, but they may cost a bit more than average.
When Mobile Insurance is Necessary
If you tend to be accident prone, you may want the reassurance that mobile insurance can bring, especially if you have spent a considerable amount on a high end mobile. However, you may do just as well by letting your home or contents insurance cover your phone instead. Frequent claims can indicate that you need the additional protection of insurance, but also come with a higher monthly rate. Older models may not qualify for insurance, as it would be cheaper to just buy a new phone outright.
You should also consider if you have the financial ability to replace your phone on the spot if it was unusable today. Some people have the willpower to save money away each month as a form of self-insurance, but it is too easy to spend that extra bit instead of applying it to your savings. You would also need to the cover the cost of any unauthorised calls if your phone is stolen, which could add up quickly. A mobile insurance plan can keep you on track and protected. You need not get insurance from your provider, as there are many independent mobile plans available.
While mobile phone insurance acts as a safeguard for your phone, it is not for everyone. The hassle of filing a claim and paying an excess can be too much work, especially if you have to wait for your phone to be replaced. Sometimes the best thing to do is save your money and be prepared for the unforeseen. If you are cautious with your mobile, you could save quite a few pounds over the term of your contract.