Mobile phone insurance can be good value
Mobile phone insurance can make sense
Monday, 11 Jun 2007 11:09
Most people do not have mobile phone insurance - but they could be making an expensive mistake.
Two Britons in three are not insured, with 42 per cent of UK residents believing it to be too expensive figures from Moneysupermarket.com show.
But with 800,000 mobile phone thefts a year, this attitude could be costing Britons dearly.
"Despite the large number of mobile phone thefts, the research shows most people do not worry enough about the costs they could face due to loss or damage," said Rob Barnes, head of mobiles at Moneysupermarket.
"With nearly four in ten people saying they do not need insurance, it is clear Britain has a very relaxed attitude towards phone security."
But getting mobile phone insurance can be cheaper and easier than you might think.
Most home contents insurance policies can cover mobiles for things like theft, loss and accidental damage. Specialist mobile phone insurance can also include international cover, out of warranty repair and unauthorised use cover.
Deals are also cheaper than many believe with Asda and FoneShield offering annual cover for under £36.
"Those relying on their contents insurance should remember not all policies automatically cover your mobile. My advice would be to ring your insurer and find out exactly what the contents policy covers and when," Mr Barnes said.
"If it is not part of your contents insurance or you are looking for more comprehensive cover, you may wish to consider one of the mobile policies.
"As handsets come free with most tariffs, it seems people do not realise the true value of their phone. If you do not have insurance and your phone is stolen or damaged, you would need to buy a sim-free handset, which could cost over £200. The latest must-have phones, such as the Nokia N95 and a LG Prada, cost over £400 sim-free.
"With this in mind, it is ludicrous to have no cover at all. Before signing up for an insurance policy, people should read the small print and make sure they are covered for even the most trivial accidents."