There’s no arguing that mobile phones are an essential part of every-day life – Statista predicts that 67% of the world’s population will own a mobile phone by 2019. These tiny devices store your treasured photos, messages and bank details, so more people are buying phone insurance to protect their beloved devices.
But the market is saturated with seemingly endless choices, so how do you decide which option is best for you? Luckily, we’ve assessed the benefits and disadvantages of the four most common types of insurance providers. Whether you choose a policy with your bank or with a specialist provider like loveit coverit, you can make an informed choice.
Most standard contents or home insurance policies will offer compensation if your phone is stolen, or damaged in flood or fire. Some more comprehensive policies will also offer cover for your belongings outside the home, but this will come at an extra cost.
‘Personal possessions cover’ protects your items against loss, theft or damage outside the home – but this can cost an extra £35 on top of your annual premium. It also comes with an excess of up to £500 on home insurance policies, compared to around £50-£75 from a pure play mobile insurance provider.
If you make a claim, this will forfeit your no-claims bonus which can push up your premiums in the long term. What’s more, a home insurance claim can take several days to be resolved, whereas a mobile phone insurance policy could provide you with a handset as soon as the next working day.
Depending on the type of account, many banks have perks like phone insurance as part of their offer. Insuring with your bank is a relatively cheap option and can be especially useful if you have a joint account – this way, both you and your partner’s devices can be insured for the same price.
However, some banks will require you to contribute a monthly fee, and pay out little in return. Many banks have limits on the amount they are willing to pay for the damage of each claim – usually around £100 – which is unlikely to cover the cost of a modern smartphone.
In many cases there is also a limit on the number of claims you can make, whereas a pure play provider offers unlimited claims.
All mobile networks have their own mobile phone insurance policies on offer, usually at the time of purchase or after. These policies offer replacement handsets instead of cash; perfect for people who need a new phone, fast.
With this in mind, insuring through your network can be one of the more expensive options, depending on the level of cover you choose. You may end up paying more per month for an insurance policy that provides less cover than other policies, leaving you out of pocket.
The cost of insurance is usually a set price, regardless of what mobile phone you own. If you have an older mobile phone, this can result in you paying more when you could be receiving cheaper cover elsewhere. Conversely, if you have a brand-new phone this is usually covered under warranty, so you may already be covered.
Pure play insurance
These companies specialise in gadget and mobile phone cover, so there are many benefits included. This option is the cheapest out of the four, with some policies costing as little as £6 a month. All claims are handled quickly and efficiently, with no limit on the number of times you can claim – a great benefit for those of us who accidentally drop their phones more often than usual.
Specialist insurance also offers unique perks like accessory cover, airtime abuse and worldwide cover, giving you peace of mind should anything happen to your device.
Unlike other policies whose primary concern is your bank account or your house, a pure play provider like loveit coverit focuses only on your beloved gadget. You can be assured we’ll repair or replace your device as quickly as possible.
About loveit coverit
Insuring over 900,000 devices to date, loveit coverit has provided mobile phone and gadget insurance for almost 30 years. All claims are handled by their friendly, UK based in-house team.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.