If you have got yourself a new mobile phone, you might have come across dealers trying to sell you mobile insurance. Do you need it? Will it be worth? This write up will cover all what and how surrounding mobile insurance to help you make an informed choice. So, let’s get started.
When should I consider mobile insurance?
- You have bought an expensive smartphone
- You are locked in a long term contract length spanning over 12 months to 2 years
- There is a history of lost or broken phones.
- You depend much on your mobile phone for your official work and would need immediate replacement in an event of loss, theft or any other damage (do check for rapid replacement service with the insurer)
What is covered under mobile phone insurance?
At the very basic, mobile phone insurance covers you in case the phone is lost, broken or it is a case of theft. The details however, are different from policy to policy. Some policies cover your phone for:
- Unauthorised calls
- Protection while travelling abroad
- Phone accessories
- Apps, games and some other confidential content
- Mechanical failure
You will have to check with your service provider for what terms are included and what comes under exclusion.
What is not covered under mobile phone insurance?
This would be mentioned under the exclusion section of the policy papers and it should be read carefully before signing up for mobile insurance. Here are some:
- Theft while unattended -If you forget your phone in an unlocked car or it is visible, leave it on a seat in the park, or in a coffee shop; you cannot be covered.
- General wear and tear
- Phones that are highly expensive
- Any delay in reporting about lost or stolen phone – some insurers clearly state that if there is a delay of 12 to 24 hours in reporting any lost or stolen phone, they won’t cover you.
- Water Damage –Thankfully the phones now come with IP67 or 68 certification that ensure that the phone is safe in the event of accidental water damage. For phones, without this certification, please check with the insurer.
- There is no SIM card or you have replaced the original SIM card with a new one – you got mobile insurance that had a particular SIM card with a number. If it is not there at the time of theft, the mobile insurance can deny you cover.
- If you are looking for mobile insurance for your kids under 18 years, you might not find any policy that cover them or have to struggle hard to find any.
Should you opt for mobile insurance – is it value for money?
You needs to e clear that mobile phone insurance do not come cheap. There are mobile operators who offer iPhone 7 128GB jet black with cheap mobile insurance plans. It is however, not important to always look for just price; you need to compare what you are getting for your money. If you are looking for speedy replacement, the premium would eventually be high. So, do check what you are signing up for.
Is there any alternative to mobile phone insurance?
You can opt for self insurance wherein you can start saving money from today and then it might come to use when you need to replace your phone or you have to pay for any unexpected damage. The biggest advantage of self insurance is that your money is always yours. If your phone never gets lost or broken, the premium you pay to the insurance company goes in their pockets.
You can include your phone into your home insurance. There are many insurance companies that allow for such a provision. So, if you lose your phone in an even of house break-in, your phone is covered. It is also a cheap way wherein you will have to pay a little extra from the regular home insurance. However, you need to be patient as the processing time in such a case takes time and you won’t be able to use the phone or will have to arrange for a new phone.
Please remember that in any case you won’t get a new phone. Most of the insurers try to repair the old one and in this case too you will have to manage either by living without phone for some days or arrange for another one.
If you are now thinking of investing in mobile insurance, go through the available policies and just pick the one that’s right for you and your pocket.