Many people will have unwrapped a shiny new phone on Christmas morning.
But with the latest models costing up to £1,500, it’s important to make sure your new gadget is protected in case of accidental damage, breakdown, theft or loss.
Independent financial research company Defaqto recently weighed up whether it’s worth taking out specialist mobile phone insurance or whether it’s enough to rely on your home insurance policy.
If your phone is stolen, the thief can run up a huge bill in calls and data downloads before you are able to block the phone. Mobile phone policies tend to offer the most comprehensive insurance, covering the handset in case of loss or damage as well as the cost of any calls and data in the event of theft, Defaqto pointed out.
Most mobile phone thefts actually occur away from the home, so it’s important to consider what cover you have in place. Generally, home contents insurance policies will not cover your phone while you are not at home unless you have bought the additional ‘personal possessions’ add-on, with only 18% including this as standard.
It’s also worth thinking about accidental damage.
If you damage your phone at home, your home contents policy will most likely cover the damage. However, for something like a broken screen, the cost of the excess may well be more than the price of the repair and so it may not be worthwhile. Mobile phone insurance policies tend to have a lower excess on claims.
And if you damage your phone while out and about — for example by dropping it or spilling a drink on it — you will need to have mobile phone insurance or personal possessions cover as a minimum.
“We are all so dependent on our phones days, you want to make sure you have peace of mind should anything go wrong,” said Anna-Marie Duthie, mobile phone insurance expert at Defaqto.