Mobile Insurance – Should you protect yourself?
Phone Insurance – Why Bother?
When you first buy your mobile phone (cell phone) you probably got pushed to buy the add-on insurance – or maybe you got given a few months free insurance together with the phone.
This free add-on is a clever and very profitable technique which phone dealers use to get you inadvertently into subscribing to the (cell phone) mobile phone insurance iteself. When you get the phone and the free phone insurance you are automatically set up to pay by Direct Debit for the insurance at the end of the free period.
But the question is this:
Is phone insurance really needed?
To answer that you need to answer 2 specific questions – the answer to which varies from person to person.
- Do you want to cover the cost of replacing your phone?
- Are you worried about being without your phone for an extended period of time?
If your phone is Pay As You Go then you will be acutely aware of how much a decent phone costs because that is what you paid when you bought it.
In fact, pay as you go phones are not actually the real cost of the phones because mobile phone operators slightly subsidise the cost of the handset. This is because these phones are usually locked to only work on their network, so they make up for the loss on the cost of the phone calls.
But they are not discounted by much (relative to the discount given to Pay Monthly contract customers) because they can be unlocked to use on other networks. However, most people do not do this – so the network knows they will get that customer’s calling minutes and business.
If you are a Pay Monthly contract customer, chances are that you did not pay anywhere near the real cost of the phone – they get heavily discounted. You promised to pay your network bills for 12 months or more – and theh networks can then disocunt you a bit and give you a bit back – which encourages you to sign up in the first place.
Yes it was free on a new contract – but it wont be to replace.
Usually buying a pay as you go phone handset is the quickest and easiest way to get a replacement. So that is your replacement cost.
As a contract customer this wil be considerably more than you thought it would be. For example the Apple iPhone is around £300 or US$400 to replace. That will hurt your wallet if you have lost it, or damaged it or some idiot has stolen it – for that you wowuld most likely want specialist iPhone insurance.
So how are you going to pay for it?
That is what mobile phone insurance is for. But is it worth it?
Unfortunately there have been many insurance operators who have fleeced the customer and charged high prices for an insurance policy that just did not make economic sense. For example it is not uncommon to be paying £8 or £10 after the free mobile phone insurance period.
Now if your phone is top of the range and expensive to replace, this might make sense, but not if you have a basic ‘I just want to make and receive calls’ type mobile phone.
So the insurance needs to be tailored to what phone handset you have.
If you have a cheaper phone, then it will be cheaper to replace, therefore the phone insurance should be cheaper. A more expensive phone should have a more expensive mobile phone insurance policy.
So that is a key decider in who you choose to insure your phone; can they tailor or offer a policy for your specific phone handset?
While you are looking at the financial side of covering the cost of replacement, you also want to consider whether the phone insurance company insist on a long term contract; many do, some do not.
If you must sign a 12 month contract (standard with many) then the cost of the insurance is a straight forward calculation of 12 months multiplied by the monthly cost. If this amount is bigger than the cost of replacing the phone yourself (by purchasing a Pay As You Go handset) then the insurance is not worth buying.
If there is not a 12 month contract then you are free to do as you choose.
If you are a Pay Monthly contract customer then there is another consideration. Think about this – once you are out of contract you can get a free phone again with a new contract – either with a different network or as an upgrade.
So towards the end of your phone contract the mobile phone insurance has less and less value and worth to you as a customer because you are at less risk of having to pay out a big bill to replace the phone.
N.B. – Sign a new phone contract and you will be open to the full cost of replacement. You would have to pay the full price to replace your mobile phone if it was lost, stolen or damaged, so you are more likely to want to have mobile phone insurance.
Often, people say they can get their phone insurance via their home and contents insurance – but if you make a claim for a (relatively small) phone cost, what is going to happen to your no-claims bonus and your home insurance premium cost next year?
So getting mobile phone insurance is about sensibly minimising the risk of having a big replacement bill, without spending hugely on the monthly insurance policy.
The best way to achieve this is to use an insurance provider who does not have a 12 month contract and who has the right price insurance policy for your phone (not a ‘one price fits all’ policy)
Read part 2 of this article answering the “Are you worried about being without your phone for an extended period of time?” part here – coming soon…
Free AT&T Cell phone Unlock code
|
|
LOT 25 Brand New Blackberry Bold 9900 Unlocked Black 4G Wholesale $11,875.00 |
|
|
Unlocked Samsung Galaxy S Vibrant SGH-T959 – ICS Android 4.0.3 – Extras $9,999.95 |
|
|
Apple iPhone 4S (Latest Model) – 64GB – LOT OF 10 (Factory Unlocked) BLACK $9,960.00 |
|
|
Apple iPhone 4S 16GB Quantity of 10 Black Sealed (Factory Unlocked) $7,400.00 |
|
|
LOT OF 5 APPLE IPHONE 4S 16GB BLACK White (FACTORY UNLOCKED) BNIB *FREE SHIPPING $5,999.00 |
|
|
Genuine Vertu Signature 18k gold edition luxury cell phone, very rare! $5,000.00 |
|
|
NEW iPhone FIVE 64GB 24ct Gold Plated frame 24k Pre Order 5 -FACTORY UNLOCKED- $4,900.00 |
|
|
Apple iPhone 4S 16GB Quantity of 5 Black Sealed (Factory Unlocked) $3,625.00 |
|
|
***5X BLACKBERRY BOLD 9900 UNLOCKED/UNBRANDED! 5 BLACK GSM PHONE NEW IN BOX!*** $3,149.77 |
|
|
Luxury 24ct Gold Edition iPhone 4s (Unlocked) Black 64GB with Swarovski crystals $2,814.28 |
|
|
HTC One XL X325e WHITE 4G LTE Dual Core 16GB 8MP Android 4.0 Phone By Fedex $3,000.80 |
|
|
New White/Black Samsung S5560 5MP Wifi Phone By Fedex $3,000.00 |
|
|
HTC Surround T8788 16GB UNLOCKED WINDOWS PHONE By Fedex $3,000.00 |
|
|
Panasonic ELUGA 8GB Silver (Unlocked) Dual-core Smartphone By FedEx $3,000.00 |
|
|
Motorola BACKFLIP MB300 Android 3G PDA Phone by Fedex $3,000.00 |
|
|
NEW Motorola A1680 Android 1.6 Phone By Fedex $3,000.00 |
|
|
New Nokia N9 64GB Black 1GHZ 8MP Dual LED Flash AMOLED Unlocked Phone By Fedex $3,000.00 |
|
|
BlackBerry Curve 9380 LED flash BlackBerry OS 7.0 Phone By Fedex $3,000.00 |
|
|
Luxury 24ct Gold Edition iPhone 4s (Unlocked) White 64GB with Swarovski crystals $2,814.28 |
|
|
Tag Heuer Meridiist Phone in Box Model GMT Stainless Steel 316L Luxury handset $2,900.00 |
|
|
Lot 10 Brand New Blackberry Curve 9360 Unlocked Black NO LOGO Wholesale $2,916.02 |
|
|
Apple iPhone 4S – 32GB 64GB – Rose Gold Plated -Black or White- Factory Unlocked $2,870.00 |
|
|
Apple iPhone 4S LOT OF 3X – 32GB BLACK -Factory Unlocked-NO CONTRACT-NEW $2,798.00 |
|
|
10 X Samsung Galaxy Ace GT-S5830 – Onyx black (Unlocked) Smartphone $2,800.00 |
|
|
NEW BLACKBERRY PORSCHE DESIGN P’9981 8GB BLACK FACTORY UNLOCKED P9981 QWERTY $2,500.04 |
|
|
Genuine Blackberry Porsche Design x P9981 Unlocked 8GB 3G WiFi 5MP QWERTY Phone $2,500.00 |
|
|
Luxury 24ct Gold Edition iPhone 4s (Unlocked) Black 16GB with Swarovski crystals $2,267.06 |
|
|
NEW BLACKBERRY PORSCHE DESIGN P9981 8GB BLACK FACTORY UNLOCKED QWERTY + ARABIC $2,437.50 |
|
|
Apple iPhone 4S – 32GB 64GB – Rose Gold Plated -Black or White- Factory Unlocked $2,450.00 |
|
|
BlackBerry Porsche Design P’9981 – 8GB – Black (Unlocked) Smartphone $2,450.00 |
|
|
RARE Apple iPhone 4S – 32GB 64GB – Gold Edition – Black / White Factory Unlocked $2,400.00 |
|
|
*10* Lot of 10 Samsung i9020T Nexus S UNLOCKED GOOD condition Cell Phones $2,350.00 |
|
|
BNIB BLACKBERRY PORSCHE DESIGN P’9981 8GB BLACK FACTORY UNLOCKED P9981 LIMITED $2,249.00 |
|
|
Apple iPhone 4S – 32GB 64GB -24K Gold Plated Ed.- Black / White Factory Unlocked $2,250.00 |
|
|
NEW BLACKBERRY PORSCHE DESIGN P’9981 8GB ARABIC + QWERTY KEYPAD UNLOCKED P9981 $2,199.00 |
|
|
BlackBerry Porsche Design P’9981 – 8GB – Black (Unlocked) Smartphone *BRAND NEW* $2,195.00 |
|
|
LOT 10 BlackBerry Bold 9700 – Black (Unlocked) Smartphone (QWERTY Keyboard) $2,119.99 |
|
|
10 X Samsung Galaxy Y DUOS GT-S6102 – Black (FACTORY Unlocked) Smartphone $2,150.00 |
|
|
NEW BLACKBERRY PORSCHE DESIGN P’9981 8GB GSM UNLOCKED BLACK P9981 SMARTPHONE $2,099.00 |
|
|
New Unlocked BlackBerry Porsche Design P’9981 Black P’9981 GSM PDA Smartphone $2,089.99 |
|
|
BRAND NEW SIM FREE SILVER BLACKBERRY PORSCHE DESIGN P’9981 SMART MOBILE PHONE $2,032.53 |
|
|
BlackBerry Porsche Design P’9981 – IN STOCK, NEW, FACTORY UNLOCKED $2,079.00 |
|
|
BlackBerry Porsche Design P’9981 8GB Unlocked FREE SHIPPING $2,020.00 |
|
|
Unlocked Apple iPhone 4s Black 64gb 24ct Gold Edition & Luxury Black Finish Box $1,913.72 |
|
|
Nokia 701 8GB Int Amethyst Violet Unlock $1,999.00 |
|
|
NEW SEALED AT&T (HTC Titan 2 II) 16GB Black 4G LTE (UNLOCKED) (ANY CARRIER) L@@K $2,000.00 |
|
|
BlackBerry Porsche Design P’9981 – 8GB – Black (Unlocked) Smartphone $2,000.00 |
|
|
18K Gold Full Diamond Crocrodile Leather Luxury Phone Plato Goldvish Unlock/U $1,999.99 |
|
|
BlackBerry Porsche Design P’9981 8GB Phone Silver Grey+Bundled 4Gifts+Wty $1,959.00 |
|
|
*10* Lot of 10 Samsung i9020A Nexus S UNLOCKED GOOD condition Cell Phones $1,910.00 |
|
|
BlackBerry Porsche Design P’9981 8GB Wifi 3G Unlocked Phone-Silver Grey $1,850.00 |
|
|
UnlockCellPhoneFree.com Unlock Cell Phone Free Iphone $1,900.00 |
|
|
Blackberry Tour 9630 3G ( Bell ) UNLOCKED Good X 5Pcs $1,825.00 |
|
|
Unlocked Apple iPhone 4s Black 64gb 24ct Gold Edition & Luxury Black Finish Box $1,780.83 |
|
|
Apple iPhone 4S – 32GB 64GB -24K Gold Plated Ed.- White / Black Factory Unlocked $1,850.00 |
|
|
Unlocked Apple iPhone 4s Black 32gb 24ct Gold Edition & Luxury Black Finish Box $1,714.38 |
|
|
Black iPhone 4S 16GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,790.00 |
|
|
White iPhone 4S 16GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,790.00 |
|
|
iPhone 4S Diamond Crystals WHITE 64GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,790.00 |
|
|
iPhone 4S Diamond Crystals BLACK 64GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,790.00 |
|
|
iPhone 4S Diamond Crystals BLACK 32GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,690.00 |
|
|
iPhone 4S Diamond Crystals WHITE 32GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,690.00 |
|
|
Unlocked Apple iPhone 4s Black 32gb 24ct Gold Edition & Luxury Black Finish Box $1,581.48 |
|
|
NEW IN BOX – BlackBerry Porsche Design P’9981 – (Unlocked) Smartphone – NIB $1,641.68 |
|
|
Unlocked Apple iPhone 4s Black 16gb 24ct Gold Edition & Luxury Black Finish Box $1,528.32 |
|
|
10x Wholesale LOT New Blackberry Unlocked White 8520 GEMINI GSM Phone $1,600.00 |
|
|
iPhone 4S Diamond Crystals BLACK 16GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,590.00 |
|
|
White iPhone 4S 64GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,590.00 |
|
|
Black iPhone 4S 64GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,590.00 |
|
|
iPhone 4S Diamond Crystals WHITE 16GB 24ct Gold Plated 24k FACTORY UNLOCKED $1,590.00 |
|
|
NEW iPhone 4S WHITE 64GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,570.00 |
|
|
NEW iPhone 4S BLACK 64GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,570.00 |
|
|
Apple iPhone 4S 32GB (Latest Model & Unlocked) White 24ct Gold Plated 24k $1,561.94 |
|
|
Iridium 9555 Satellite Phone Disaster Preparedness Kit $1,525.00 |
|
|
Dual Screen Titanium Tag Heuer Bluetooth Crocodile Leather Luxury Phone Unlock/U $1,499.99 |
|
|
Blackberry Tour 9630 3G ( Telus ) UNLOCKED Good X 5Pcs $1,425.00 |
|
|
Black iPhone 4S 32GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,490.00 |
|
|
White iPhone 4S 32GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,490.00 |
|
|
Apple iPhone 4S 32GB (Latest Model & Unlocked) Black 24ct Gold Plated 24k $1,468.13 |
|
|
Apple iPhone 4S (Latest Model) – 16GB – 2x Factory Unlocked-NO CONTRACT- NEW $1,435.00 |
|
|
NEW iPhone 4S WHITE 32GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,470.00 |
|
|
NEW iPhone 4S BLACK 32GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,470.00 |
|
|
Nokia N9 3G WiFi 8MP 16GB Internal Touch Mobile Phone Blue+1Gift+1 Year Warranty $1,449.00 |
|
|
Iridium 9555 Satellite Phone W/ 222 Prepaid World Min $1,445.00 |
|
|
iPhone 4S – 64GB White – UNLOCKED $1,399.95 |
|
|
NEW iPhone 4S BLACK 64GB 24ct Gold Plated 24k -FACTORY UNLOCKED- $1,420.00 |
|
|
NEW iPhone 4S WHITE 64GB 24ct Gold Plated 24k -FACTORY UNLOCKED- $1,420.00 |
|
|
Black iPhone 4S 16GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,390.00 |
|
|
White iPhone 4S 16GB 24ct Mirror Gold Plated 24k FACTORY UNLOCKED $1,390.00 |
|
|
Wholesale Lot 42 Samsung SCH R350 Freeform – Red (Generic) CDMA Cellular Phone $1,386.00 |
|
|
Apple iPhone 4S 16GB (Latest Model & Unlocked) White 24ct Gold Plated 24k $1,357.12 |
|
|
Nokia 8800 Arte – Gold (Unlocked) Cellular Phone $1,350.00 |
|
|
NEW iPhone 4S WHITE 16GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,370.00 |
|
|
NEW iPhone 4S BLACK 16GB 24ct Gold Plated with 24K GOLD BACK -FACTORY UNLOCKED- $1,370.00 |
|
|
iPhone 4S – 32GB White – UNLOCKED $1,339.95 |
|
|
iPhone 4S – 16GB White – UNLOCKED $1,299.95 |
|
|
iPhone 4S – 16GB Black – UNLOCKED $1,299.95 |
|
|
NEW iPhone 4S BLACK 32GB 24ct Gold Plated 24k -FACTORY UNLOCKED- $1,320.00 |
|
|
NEW iPhone 4S WHITE 32GB 24ct Gold Plated 24k -FACTORY UNLOCKED- $1,320.00 |
|
|
Apple iPhone 4S (Latest Model) – 64GB – Smartphone UNLOCKED $1,269.25 |