In an age of gadgets, one of the most prominent accessories of our society is the mobile phone. And with it's ascendancy has risen the perceived necessity of mobile phone insurance. However, customers should exercise more consideration as to how necessary such coverage really is.
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
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.
If you have a PAYG (Pay As You Go) handset, and it is lost or stolen, you have lost the handset and whatever credit it has on it. Annoying as that is, it isn't as costly as being tied to a contract phone, for which you would still be entitled to pay a monthly fee for the duration of your contract. And you would have to do this even if you had lost or broken your phone.
Such a customer would undoubtedly benefit from having coverage, as the cost of purchasing a new mobile is more prohibitive. A contracted customer who is more vigilant with their phone is less likely to benefit from such coverage, and a PAYG customer need not bother with such coverage at all. Having no contractual entanglements allows the PAYG customer to shop around for a less costly product.
However, the sort of coverage you require may already be within your reach. If your have home insurance, you may be able to get coverage by exercising an "all risks" clause on your policy that will cover items of value that aren't always within the insured premises. You will have to check if such coverage would entitle you to a replacement handset, however.
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.
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
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.
If you have a PAYG (Pay As You Go) handset, and it is lost or stolen, you have lost the handset and whatever credit it has on it. Annoying as that is, it isn't as costly as being tied to a contract phone, for which you would still be entitled to pay a monthly fee for the duration of your contract. And you would have to do this even if you had lost or broken your phone.
Such a customer would undoubtedly benefit from having coverage, as the cost of purchasing a new mobile is more prohibitive. A contracted customer who is more vigilant with their phone is less likely to benefit from such coverage, and a PAYG customer need not bother with such coverage at all. Having no contractual entanglements allows the PAYG customer to shop around for a less costly product.
However, the sort of coverage you require may already be within your reach. If your have home insurance, you may be able to get coverage by exercising an "all risks" clause on your policy that will cover items of value that aren't always within the insured premises. You will have to check if such coverage would entitle you to a replacement handset, however.
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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