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Mobile Phone Insurance

handy giff-staffer tom
handy giff-staffer

We recently carried out a survey that showed millions of UK mobile users could be unknowingly paying twice to insure their handset.  The research showed that approximately 5.7 million mobile customers in the UK  could be doubling up – by taking on insurance from their mobile provider when their handset is already covered by their home insurance policy.  


Of course, it's vital that you check your home insurance to make sure it covers your mobile but with the monthly average Insurance costing £8.20 per month (from mobile retailers), people could be paying £100 a year on unnecessary insurance.


The research also revealed a change in behaviour over the last five years, with an increase in the number of mobile users taking out insurance.  In 2006, only three percent of respondents insured their handset, however, in 2011, out of the people who have an active insurance policy in place, 32 percent have taken up an insurance policy in the last 12 months – a number which is only set to grow as mobile handsets increase in capability and price.


To highlight our research findings we have issued a PR press release, which will hopefully get coverage in the Press, so keep your eyes peeled. (Update - I have attached the mention from today's Sun and Daily Mirror, great stuff).


Which? Mobile, the UK’s leading consumer association offer the following tips to consumers when considering their options for mobile phone insurance here, and below:

  • Before you buy, read the terms and conditions carefully, check the excesses and exclusions and weigh up the policy.
  • It's worth bearing in mind that if you don't have mobile insurance, you'll be liable for the cost of any calls made if the phone is stolen.
  • Some retailers will try to bundle in mobile phone insurance when you sign up for a new contract and handset, especially for high-end models.
  • But don't be pushed into buying the first mobile insurance policy you're offered. You could find a better deal if you take a bit of time to shop around. 
  • If you do buy mobile insurance, by law the seller must send you a policy summary setting out the key points in the cover and a 'statement of demands and needs' to show why you were recommended the insurance in the first place.
  • If you take out mobile phone insurance and then decide you don't want it, you have a 14-day 'cooling-off' period, starting from the day you purchased it, during which you can cancel the policy and get your premium refunded in full.

Tara Evans at This is Money also offers great advice for those who may be considering getting an insurance policy here.


So what do you think about Mobile Insurance?  Do you have it?  Have you claimed? Let me know your experiences.


The whole purpose of insurance is to cover yourself for something which you can't afford to replace if it gets lost/damaged/stolen or whatever.

Insurance companies are like bookmakers - they work out the odds of something happening, and then make sure that they will make a profit if it happens.

With something like a mobile phone, many people would be able to afford replacing it, and so insurance isn't worth paying.  If you think it is worth insuring, you'd probably be better "self-insuring" - i.e. instead of paying an insurance company £X a month, put the same £X a month into a building society account.  Chances are you'll be better off, as you don't have to make a profit for an insurance company.


Now something like insurance for the cost of rebuilding your house is worthwhile for all but the richest in society, because that's covering a sum of money which (almost certainly) you can't afford to pay.


Motor insurance is required by law, so this argument doesn't apply.



I really object to some companies automatically putting insurance on an order. They always say "first month free" in the hope that you'll forget to cancel it. Well dodgy in my opinion...


My home insurance with the Co-op covers things like phones and other mobile gadgets. I've never bought separate mobile insurance, but then I never have really expensive phones. Even if it's insured I don't like the idea of carrying a £400 phone around.


£8.20/month to insure one mobile phone?


Good grief, that's more than I pay for my house and contents policy.


I don't have any 'all singing and dancing' mobiles but I keep spares under the seat in both my cars and the GL and I have one each in our possession whenever we're out.  If they're lost or stolen, the £20 or so PAYG credit on each is probably more than the phone is worth anyway!


I insured the first mobile phone I had many years ago, but since then the eagerness with which retailers and networks try and sell insurance has made me realise that it isn't worth the money (and anyway the household contents insurance covers personal posessions).


tom wrote:
  • It's worth bearing in mind that if you don't have mobile insurance, you'll be liable for the cost of any calls made if the phone is stolen.

The last policy I saw said that you were liable for the cost of calls until you reported the theft to the network.  Of course there won't be any calls after that because the SIM will be barred!


Phone insurance supposedly offers peace of mind, some people will need it, others won't require it, and a few will abuse it. Often it's included as an (hidden) extra when getting a new contract. If you're prepared to take the gamble and suffer the loss in the worst scenario, then you could save quite a bit, but as already stated, you may already be covered under a different policy, or even by your bank account or credit card. LLoyds TSB & Natwest already offer this service, so an additional policy often makes no sense, and some people will probably find themselves covered with several different policies.



Iv never bought phone insurance as it costs nearly as much as just buying a new phone
im good

umm this article is no supprice the term it's all in ths small print cames from.

it least  wth sim only deals you don't suffer this problem what's more if you take your payback as cash you could use it to

pay the home insurence premeum wich as has been said covers mobile phones.



I hate inertia selling which is what auto including insurance is. When I tried to cancel once they said I couldn't have the first months premium back which the shop salesman said I could anyways when I cancelled the dd the phone company sat up and notice. Getting paid is all that companies seem to notice nowadays.