The Importance of Phone Insurance

16 Oct 2018

Why do I need phone insurance?

As smartphone technology progresses at such a rapid pace, the price of modern handsets is getting higher. According to research from GfK, the global average smartphone price is $363 (around £279), with top of the range devices – such as the latest Apple release, the iPhone XS – carrying price tags over the £1,000 mark.

Being such an expensive investment, you may believe that people would be protective of their pricey devices. However, accidents happen, and our smartphones can fall victim to everything from bumps and scratches, to loss and theft. In fact, it is estimated that around a quarter of UK smartphone owners have broken their mobile phone screen in the last two years alone.

While you cannot always guarantee that your mobile device won’t be damaged or stolen, thankfully, there are steps you can take to make sure you aren’t left forking out for a completely new device should the worst happen. Phone insurance can be a valuable lifeline for both your smartphone and your wallet.

Is it worth getting phone insurance?

Naturally, phone insurance is an additional monthly expense and therefore, some people may be put off. However, there are several reasons why it is definitely worthwhile considering taking out insurance on your phone.

Firstly, as we mentioned before, most phone models nowadays do carry big price tags and therefore represent a big investment. If this is the case – and you want more from your mobile phone than a back-to-basics device that only allows you to make calls and texts – then it will probably be expensive to replace your phone if anything happened to it. You may not want to have to downgrade your model, so insurance would be a safety net to ensure you don’t have to go without your top of the line gadget.

A lot of customers also sign up to lengthy contracts with their network providers, commonly lasting around 24 months. This means that if your phone went missing or suddenly stopped working for whatever reason, then you would still have to make your monthly payments and be left out of pocket. Insurance can offer a quick fix or a replacement in this instance, so you can get back to normality with minimal hassle or disruption to your day-to-day life.

Finally, some people may simply rely on their phone for professional needs or have a sentimental attachment to their device. If this sounds like you, then it is always worth protecting. However, you should be aware that some providers will attempt to repair damaged phones or provide you with a refurbished device rather than a brand-new replacement. If this is outlined in your policy, then you may have to go without your phone for between four to seven days.

What is covered by phone insurance?

Phone insurance policies vary widely and the price you pay, and level of cover will depend on the deal you choose to take out. However, most standard policies will allow you to make a claim if your mobile device is broken, lost or stolen. Some policies will also provide protection if unauthorised calls were charged to your device or if you caused accidental damage to your phone, as well as covering you for any incidents that occur abroad. This additional level of cover may make your premium higher though.

Your insurance provider may also offer to cover the cost involved with replacing certain data, such as music or apps you have purchased. However, they will not be able to recover data such as photos, contacts and messages. Therefore, it is always a good idea to back up your data on the iCloud if you are using an Apple device or an alternative cloud storage system if you are an Android customer. This way, you won’t have to lose all those precious memories if you have to part with your phone. It can also be worth backing up data on a separate computer device for added protection.

If your phone is stolen, make sure you report it to your local police as soon as possible, as you will need an incident number to make an insurance claim. As soon as you notice your device is missing, you should also contact your network provider to put a top to any services, ensuring that no one is able to make unauthorised charges on your device. When making any kind of insurance claim, you should contact your insurer’s claims number, explain what has occurred, fill out any necessary forms and provide any supporting documents, such as receipts for a new phone purchase for example.  

What is not covered by phone insurance?

Although phone insurance offers peace of mind for most situations, there are certain exclusions that apply to the vast majority of policies. One example of this is damage caused by carelessness, such as dropping your phone in the swimming pool. In fact, a lot of policies exclude water damage cover, so if this is a concern for you, make sure you to check the small print.

You may also be unable to make a claim if your phone was stolen when you left the device unattended or if there was a delay in you reporting the loss or theft. A lot of insurers require you to alert them within a 24-hour window, with some only giving you as little as 12-hours to notify them.

Another reason you may struggle to take out phone insurance is if you are looking to cover a device that belongs to a young person. A lot of insurance providers will not protect phones that are owned by under 16-year-olds, as they are more prone to damaging, losing or having their phone stolen.

How Hoppy can help

If you’re thinking about buying a brand-new smartphone and want to ensure that you’ll be insured as part of your contract, then Hoppy can help. We make it so quick and simple to compare phone deals from a wide variety of network providers and for a range of different models. Simply tell us the type of deal you are looking for and we’ll help you find the best one for you in just a few clicks.

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all this is covered by home insurance isnt it?

john bishop

That depends on the details of your contents policy. Most home insurance contents policies will cover your phone if it is lost or stolen, but for more comprehensive cover you will need to add Accidental Damage Cover as well as Away from Home / Personal Possessions cover.

Don't forget if you do need to make a claim, you'll have to pay the full excess on your policy.

Hope this helps to clarify.

Kind regards,


Mary J_1