One question that consumers constantly play with is whether it is worth getting the insurance that comes with your new shiny mobile phone. Mobile phones are expensive things these days and if you commit to a contract you’re usually stuck with the same one for 18 to 24 months. If you lose it within the first couple of months then you could be stuck with your old Nokia 3310 for 18 months – try getting on the internet on that!
However, committing to a mobile phone insurance policy can be an expensive business, especially if you never actually need it. With fees of £5 – £10 per month on average depending on which phone you have, you can end up shelling out £240 for your 24 month’s of mobile phone insurance for nothing. This of course is the catch 22 of all insurance policies. Do you spend the money ‘just in case’, or do you go without it and take the risk that you might have to live with an old phone until your next upgrade?
Personally, I have stopped taking the option of insurance as in my most recent contracts I haven’t lost or damaged my phone at all. However, in earlier contracts I used to lose my phone left, right and centre, and without insurance I would have had to pay a lot of money to replace them. If you’re a clumsy person or in an environment where phone loss is inevitable (you haven’t got prayer of keeping your phone all the way through university!) then I’d suggest that mobile phone insurance is probably worth the investment. However, if you’re a bit older and more reliable in what you’re doing then you’re less likely to get value for money from an insurance policy.
Look at it this way – you could pay £240 for insurance over a 24 month contract, but if you lose your phone you could probably buy a new one for that price so it’s only when you lose it for the second time that you actually benefit from having the insurance.
One way around this issue is to try and get the insurance thrown in for free with your contract. As a new customer the phone company will be extremely keen to get you on board so will most likely be prepared to include some sweeteners. Insurance is a great thing to choose for this. Likewise, if you’ve been with your mobile company for a long time they will be likely to reward the loyalty by including additional benefits. If they don’t, ask to be put through the cancellations department and they soon change their mind!
The reality is that insurance is better value for some people than others, it’s up to you to judge how likely you are to need it and how good a deal you can get with your mobile company.
This is a guest post from Tom at Ezee Mobile Insurance, a neutral guide to the best mobile phone insurance deals on the market.