Mobile Phone and Gadget Insurance

The costs to compare

Total the monthly premium over the period you will keep the device.

Add the excess payable per claim, which on premium phones is frequently substantial.

Compare that total against the cost of replacing the device outright, or of a screen repair which is the most common claim.

For many devices the total premium plus excess approaches the replacement cost, which means you are insuring against a loss you are largely funding anyway.

The exclusions

Unattended loss is the significant one. Many policies exclude theft where the device was left unattended, which covers a large proportion of real losses.

Loss as distinct from theft is excluded by some policies entirely, and losing a phone is more common than having one stolen.

Cosmetic damage that does not affect function.

Devices not purchased new, or beyond an age limit.

Claims may require a police reference and proof of purchase, and some require reporting within a short window.

What you may already have

Home contents insurance frequently covers devices at home, and personal possessions extensions cover them away from home. Check the single-article limit.

Packaged bank accounts frequently include gadget cover, and many holders never realise.

Some credit cards provide purchase protection for a period after buying.

Manufacturer warranties cover defects, and consumer legislation provides remedies for faults beyond the warranty period in many jurisdictions.

The self-insurance alternative

Setting aside the monthly premium produces a fund that covers a screen repair within months and a replacement within a year or two, and the money stays yours if nothing happens.

This works for anyone who could absorb the replacement cost. It works less well for someone who could not, which is the circumstance insurance genuinely exists for.

Reducing the risk instead

A case and a screen protector prevent the most common damage at trivial cost.

Enabling device tracking and remote wipe reduces the consequences of loss.