Review your mobile phone insurance

19 July 2010

There are 228 mobile phones reported stolen every hour in the UK, according to the Home
Office. Added to that are the countless numbers of unreported thefts and phones that are
dropped, lost or damaged.

But is mobile phone insurance the answer? It’s worth reviewing your policy to see if you really do need insurance or if you’d be better off ditching it.  

1. You may already be paying for insurance without realising it. Insurance is a common benefit offered alongside current accounts. However, it might not be the most comprehensive policy. Alternatively, your mobile phone might be included under your home contents insurance. 

2. Some network providers will try to push insurance when you buy a handset, but you’re under no legal obligation to purchase it. If you need insurance, it’s not compulsory to buy it from the same provider that sold you the phone. And remember, you can always cancel an insurance policy within the 14-day cooling-off period that runs from its purchase date. 

3. Given that insurance can typically cost between £5 and £7 a month and it’s possible to buy handsets for just £20, you could simply buy a new handset if you lose your phone. If you own a pricier handset, however, be wary of having no insurance at all. Mobile phone contracts last 18, or even 24 months, and if your expensive BlackBerry is lost or stolen towards the start of this term, you’ll have to cough up for a new handset, which will cost considerably more than £20.

4. You can compare mobile phone insurance costs at and The main areas of cover to look out for are theft, loss, accidental damage and water damage. By law, you should receive a policy summary document that outlines the key points, as well as a ‘statement of demands and needs’ to show why you were recommended the insurance in the first place. 

But beware high excesses – some policies come with an excess of £50 attached to them.



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