I recently brought a Smartphone, which is slightly more expensive than my normal investment in a mobile phone, as I’m terrible and constantly lose them. However I am not alone in my losses, with one in six Brits having reported losing their phone in the last 12 months, this equates to 7.3 million missing mobiles every year being lost according to Dial a phone. This could cost us the UK consumers an estimated £1.3billion in 2012*.
So, this has got me thinking about insurance for my phone and what options are out there to stop the predicted £1.3 billion becoming a self fulfilling prophecy.
The first insurance option found was a stand alone mobile phone insurance policy. These policies are paid into monthly and in the event you lose, have stolen or damage your phone you receive either a payout or replacement phone. However as well as these policies seeming fairly costly, with one policy found costing £12.50 a month (£150 a year) and having an excess (the amount the policy holder is responsible for paying when making a claim) of £120**. Moneywise have even found, in their recent research (3rd May 2012) that these policies rarely pay out unless the phone is stolen or damaged.”
I don’t know about you, but I don’t want to be paying such a large amount into a policy just for the privilege of receiving a year’s cover, as well as having to pay such a massive excess if I lose the phone.
Therefore I continued to look for other options, and came across policies that allow you to add personal possessions/all risks to your current contents cover within your home insurance.
These policies can vary hugely in what they offer, however bolt-ons such as Value plus (offered by Countrywide Insurance Services, underwritten by AXA Plc.) give you cover outside of the home for your personal effects, valuables and money. This covers you and your family in the UK and abroad***. However this depends on the insurance company that takes up the policy.
This seems to be a great option, as for as little as £5.15 a month plus agreed excess on pay out, you can get cover for your phone against loss as well as many other valuables you and your family may own that are covered within the policy, with the monetary worth generally up to a minimum value depending on the items covered within the policy as a whole.
This combines a few different policies that you otherwise would have to have separately; Contents insurance, Valuables Travel insurance and phone insurance. Cutting out the stress of trying to check, chase and track all the companies that would hold the separate policies and monitoring all the paper work this would involve.
For the 3.7 million Brits that have recently lost a phone and any one else that has lost a phone in the past, I urge you get some insurance for your phone!