mobile phone

How to Insure your Mobile Phone

How to Insure your Mobile Phone?

If you are looking at how to insure your mobile phone in order to get the best cover at the cheapest price, it makes sense to do a little comparison shopping.

However, first it is important to know exactly what you are getting for the money. Cheap prices don’t always mean that you are getting the best deals. Here’s why.

What is the Policy Excess?

Very few insurance policies of any kind come without an excess clause.

For example, consider theft insurance on a mobile phone. Most policies will pay up to a maximum amount over the excess.

Let’s say that you have mobile phone insurance that will pay up to £2,000 after you have paid the first £200. However, your insurance policy costs you £2.49 per month and you are asked to sign an annual contract.

Over the course of a year you would be paying £29.88. Unfortunately, your mobile phone only cost you £229 new out of the box. By carrying insurance that costs you almost £1 more than you paid for a new phone on the ‘off’ chance it may be lost, stolen or damaged, you are in fact paying what you could pay in the event that any of those things happened. This is the first thing to look at when trying to determine how to insure your mobile phone.

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Is a Standalone Policy Best?

Another point to consider is whether you want to simply insure your mobile phone or if you have other valuables which need to be insured.

How to Insure your Mobile Phone

Most insurance companies offer a multi-policy discount for customers who carry more than one type of insurance. For instance, if you have jewellery, works of art, a laptop, and other valuables which need to be insured, finding an insurance company that insures all of those items may offer a discount for carrying more than one type of insurance policy.

Some banks offer what they call ‘added value’ accounts which can be added to your bank account for a monthly fee. Here again, you must be careful that you are not being charged more than you would spend replacing the items being insured as well as reading any clauses which would render the policy invalid.

Make sure you understand what the policy excess is and whether or not you could get those items cheaper if you had to pay the replacement value yourself.

Whilst there are a number of insurance companies in the UK that offer mobile phone insurance, two of the largest companies that specialise in this type of cover are Supercover Insurance Ltd and Assurant General Insurance Limited. Both of these companies may also do business under other names but these are the parent companies. Both are registered with the Financial Services Authority which you can check on the FSA website.

It is important to make sure that an insurance company, for any type of policy whatsoever, should be duly licensed to do business in the UK and should be registered with the Financial Services Authority at the very least.

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