Given how prevalent mobile phones have become in our everyday lives, it is only natural that mobile phone insurance would become a lucrative business for the insurance industry. Customers therefore need to decide for themselves whether they need to bother insuring their handsets. Before taking out a policy, there is one important fact that a customer should keep in mind.
Policies for mobile phones aren’t assessed by the usual criteria that other policies use, such as age group, income etc. Customers are all viewed on the same level regardless of these distinctions. This means that a customer who never has suffered any loss or damage to their handset will subsidize the claims of those customers who do.
A customer who has never had any problems with their mobile and isn’t prone to carelessly misplacing it will probably not benefit from having their phone covered. But how prudent you are with the safekeeping of your handset isn’t the only factor to consider. The type of deal a customer has is also an important consideration.
A PAYG (Pay As You Go) customer, for instance, will be out a phone and whatever remaining money was on it if the handset goes missing or if they are robbed. Those circumstances are more frustrating, though, if they happen to a customer who has their mobile on contract. Even without access to a working handset, they are still obliged to honour their contractual installments.
If you are careful with maintaining your handset, or are a PAYG customer, taking out a policy is likely unnecessary. If, however, you are a contract customer, and do have a prior history of bad luck with lost, broken or stolen handsets, getting cover would probably be a smart move. An insurance policy will cost less in the long run than a series of new phones would. A PAYG customer can simply look for a cheaper deal and are under no commitments to any service provider, but a contracted customer doesn’t have that luxury.
If coverage is required, homeowners who have their homes insured can invoke an “all risks” choice on their policy that extends their contents cover to account for valuables that are used outside the insured premises. There is no guarantee, though, that such coverage will allow for a missing or impaired handset to be replaced.
All things considered, a specific mobile phone insurance policy would likely be the best investment if you require it. But whether you require it or not is a matter of individual judgement. If your circumstances do not warrant purchasing such a policy, then save your money.
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