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Mobile phone insurance

Mobile phone insurance - we've got it covered

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Do you really need mobile insurance?
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Specialist or network insurance?

Is mobile phone insurance really worth it? Or is it just money better spent elsewhere? Read our guide and find out whether you should get specialist insurance for your mobile phone.

Do you need it?

Maybe. Over two million mobiles are stolen each year in the UK alone, and over four million are lost or damaged, so there is a real chance that something could happen to your phone. If you don't have insurance and you're on a monthly contract, you'll have to keep paying the line rental for the remainder of the contract or replace the phone yourself which could mean a large bill.

Check your home contents insurance

If you have home contents insurance you may not need to buy a separate policy for your phone at all so check your policy. Most policies allow you to add cover away from home to protect your valuables from loss/theft/accidental damage. Speak to your insurers and find out the details. Check that they will replace the phone, or give you cash and remember to ask how much the excess will be.

Pay As You Go or contract?

if you're a Pay As You Go (PAYG) user you're the least likely to need insurance because if your phone is stolen a thief can only use up the remaining credit - so unless you've got the latest top notch phone it’s probably not worth getting it covered. Insurance is much more likely to be necessary if you’re on a contract because you’ll still have to pay the monthly bill until the end of the contract.

Tip 1: Keep your old phones so that all you have to do is get is a SIM card. You can get two T-Mobile SIM cards for free by clicking here and filling out the online form.

Tip 2: Remember you can pick up second-hand phones very cheaply on eBay. You can always replace your phone with one of those and just pay for a new SIM card.

Get it for free!

Barclays has the Additions Active current account which costs £14 a month but comes with all kinds of extras including mobile phone insurance, worldwide multi-trip travel insurance and RAC comprehensive breakdown insurance.

Lloyds TSB has four 'Added Value Accounts' which are also current accounts with extra benefits. Their Silver Account costs £2 per month for the first three months and then £7.95 per month and for this you get mobile phone insurance, annual travel insurance, AA breakdown cover, Sentinal card protection, Airmiles and travel money card.

Read our full article on current accounts for more information.

How does it work?

What should be covered?

Make sure your policy covers you anywhere in the world. Also ask if the policy covers the cost of delivery charges for a replacement phone (although you may be expected to pay for aborted deliveries if you find your phone for example).

What won't be covered?

Normal wear and tear from everyday use won't be covered. Also if the company doesn't believe you've taken reasonable care to keep your phone safe (leaving it unattended in a public place) they won't pay out. If the network service breaks down this won't be covered either. Another thing to note is that if you leave your phone in a car make sure you put it away in a glove department or boot or once again those pesky insurers won't pay out.

If it’s stolen…

Call your mobile phone network straightaway and they can block your phone so that no-one can use it and rack up a huge bill.
Call the police (within 24 hours of the incident) and they will give you a loss or crime reference number.
Call your insurance provider and quote them the crime or loss reference number.

Tip: If you only have a few months left on your contract it may not be worth paying out for a replacement phone, so just wait for the contract to finish and then make sure you get the best deal for your next contract.

Specialist or network insurance?

If you're a PAYG customer you'll have to get a standalone policy because most networks only offer insurance for their pay monthly, contracted customers. But don't worry this is actually a good thing because there are some great deals to be found. As always shop around and have a look at some of the specialist insurers and network insurance that we've compared.

Standalone or specialist cover:

How does it work?

They replace the phone and your network replaces the SIM card. The cost depends on your phone i.e. the more expensive the handset, the more expensive the premium. Once again you can only take out the insurance if you've bought the phone in the last six months.

Step one: Make sure the company is FSA regulated.

Step two: Get a specific quote for your exact phone model.

Step three: Always read the small print! Read the policy documents so you know exactly what a policy covers you for and if you're not sure then phone up and ask.

Step four: Make sure it covers you for unattended theft because there are some that don't.

Why is it good?

You can get cover for both PAYG and contract phones.
Most of these standalone policies give you a no claims bonus (unlike the network policies).
There is no fixed term keep it as long or as short as you need - you pay monthly so all you need to do is give one months notice and you can cancel the policy.

Policies to choose from

Talkcover

Cost: Depends on the price of your handset. You can get an instant quote here.

Excess: £25 for a theft or accidental damage claim, or £50 for a loss claim. For a claim made outside the UK, Isle of Man and Channel Islands it is £75.

Key features: Worldwide cover. No claims bonus.

You can save money if you need to insure more than one phone. For example, insuring three Apple iPhones is the same price as insuring two, so get your family or friends to insure their phones with you.

They also currently have a special offer of 12 months insurance for the price of when you pay annually. Click here to find out more.

Jade Stanley Insurance

Cost: £4.99 a month.

Excess: £25 or £50 for 3G phones.

Key features: Covered for replacement or repair costs up to £1,000. Worldwide cover up to 90 days a year. Cover up to £1,000 for unauthorised calls (for a 24-hour period after theft claim).

Lifeline - The Carphone Warehouse

Lifeline offer three phone insurance packages that you can buy on several different price bands. All the policies provide up to 60 days cover outside the UK.

Lite: Costs from 0.92 per week (band one) to £2.77 per week (band five). Excess of £29.50. Accessory cover of £100 and unauthorised call cover of £5,000.

Complete: Costs from £1.07 per week (band one) to £3.15 per week (band five). Excess of £29.50. Accessory cover of £300 and unauthorised call cover of £10,000.

Start: Costs either £4.99 per quarter (band one), £7.99 (band two) or £9.99 per quarter (band three). Excess of £9.50 on band one, £19.50 on band two and £29.50 on band three. Only £50 accessory cover, no cover for unauthorised calls and no cover for loss.

Click here for more information on these policies.

CUSC (foneguard)

Cost: For an annual premium the price is £49.99 (£4.17 a month) and the monthly programme is £4.99 a month (but you have to pay the first three months immediately, then pay monthly after).

Excess: £25 or £50 for 3G phone.

Key features: Worldwide cover. Currently offering cover for all phones except the Nokia 8800 Arte.

Insuremymobile.com

Cost: Economy (covers phones up to £150) is £2.49 per month, Standard (covers phones up to £400) is £5.88 and Executive (covers phones up to £1,000) is £7.99.

Excess:

Key features: Worldwide cover. No claims bonus.

Network insurance

Insurances with the networks tend to cost around the same price, but because these prices are set (i.e. the same for any phone) they could be the best option if you have an expensive handset.

How does it work?

You must register any claim straightaway - most insurers will of the incident.

Lifestyle Services Group Limited - 3 Mobile

Cost: £6.99 per month
Excess: £25
Key features: Your phone and SIM card are covered up to the combined limit of the lower original retail cost or £500 (including VAT). Accessories are covered to the value of £250.

Fonesafe - T Mobile

Cost: £6.99
Excess: £25 for first claim, £50 for second claim (within six months of each other), and £75 for third claim within six months of last claim.
Key features: Worldwide cover, unlimited number of claims.

Orange Care - Orange

Costs: £6 per month. There’s an administration fee of £15 for all claims made.
Excess: £15.
Key features: Worldwide cover.

O2 Insure Standard - O2

Costs: £6
Excess: £25
Key features: £25 worth of accessory cover

Vodafone Cover Me - Vodafone

Cost: £6.95
Excess: £25
Key features: Covers mobile phones up to £600 and accessories up to £200. Cover for 30 days when travelling abroad. Anyone you allow to use your phone is also covered.

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