Why You Need Mobile Phone Insurance

The mobile phone industry in the UK has witnessed dramatic changes over the last few years, the most significant of which is the advent of smart phones such as the iPhone 4S, the Samsung Galaxy Note and the Blackberry Torch to name but a few. These trendy and expensive phones cost a lot to manufacture and that because of their value they have also caught the attention of UK insurers. This has given birth to a whole new industry sector of mobile phone insurance.

Finding an insurance cover for your mobile phone is not always a straight forward procedure and there are a number of things you need to consider before picking out a policy which will suit you. Our guide aims to shed some light on the process and answer all your questions.

What Risk is Covered in The Policy?

There is no standard criterion for choosing what risk is and isn't covered in the mobile insurance policies. It all varies from one insurance company to the other. However, some of the risks that might be covered include but not limited to loss of the phone, accidental damage, malfunction and theft. Moreover, most of the policies also include international cover. Also another common feature of the cover is data backup of up to a certain amount of data free of charge. Above that data limit, the effect is an increase on your monthly premiums.

Is The Mobile Phone Insurance Necessary?

This depends on how you look at the situation and what you intend to do with your phone. Ask yourself if you have ever lost or broken a mobile phone before? If your mobile has been clipped to your belt buckle for the last 5 years, then you're probably one of those who don't need to get insurance. However, if you're one of those who find themselves waking up at random places, the chance you'll lose or damage it are huge.

Are You Already Covered?

If you already have home insurance, you should be covered for theft or loss of items in the home. Although standard home insurance only covers phones if they're lost in a home burglary or house fire, some insurance companies offer add-ons, such as "possessions outside the home" extra for as little as £30 a year, meaning there's no point buying mobile phone cover separately.

Most current bank accounts - particularly, current accounts that charge a monthly fee - also include mobile phone cover as one of their freebies. You can get mobile phone cover with you current account at the Royal Bank of Scotland for £8 a month or at Halifax for £10 a month to name but a few. Do not assume that your mobile is automatically covered as some banks require you to register the handset. Depending on the circumstances, it might be cheaper to get a fee-free bank account and cheap mobile insurance separately so remember to shop around!

Finding The Best Insurer

The simplest way to cover a handset is to buy your mobile network's own policy. Be aware that these can be very expensive. If you buy an iPhone 4S from Vodafone, you can get its Cover Me insurance which costs £12.99 a month, or almost £312 over a 24-month contract. Orange charges a similar £12 a month.

Another option is to go for specialized insurers. A great online deal comes with which offers to insure your iPhone from £5.99p/m against accidental damage, cracked screen, liquid damage, theft, mechanical breakdown, loss and unauthorized calls.

It is essential to carry out a comparison before settling for an insurer. In your comparison, do not just focus on the price alone, but rather what is covered under each policy, and whether it suits your insurance needs.