Mobile phone insurance

Mobile phone insurance
Get iPhone & Samsung cover for less than £5/mth

Damaging, misplacing, or having your phone stolen can lead to frustration and high costs. Insurers often capitalize on these concerns by charging steep premiums. However, it’s possible to find affordable mobile phone insurance for under £70 annually for the newest models like the Apple iPhone 15 and Samsung S24, with even lower rates available for older phones. This guide will show you how.

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What is mobile phone insurance?

In simple terms, mobile phone insurance is a policy that provides a payout to either fix or replace your phone. The scope of coverage varies by policy, but a good one typically includes protection against theft, loss, accidental damage, malfunction, unauthorized use, and sometimes even accessories (though these usually need to be attached to the phone).

It’s important to note that phone insurance generally only covers the physical device. Data like photos stored on the phone can be irreplaceable, and recovering it may be difficult or impossible. To safeguard your data, make sure to regularly back up your phone (our Free Online Storage guide can be useful for this).

Should I get mobile phone insurance?

Purchasing mobile insurance is optional, so it’s essential to consider if the expense is justified. While we can’t make that decision for you, here are some key questions to ponder before committing to a policy:

– Are you a loser? Or – put more politely – How often do you misplace or damage your phone? If it’s something that happens often, getting insurance could be a smart choice since it would be cheaper than continually replacing your device.

However, if you’re someone who rarely loses or breaks your phone, you might want to skip the insurance. Instead, consider setting aside a small amount each month in a top savings account. When the time comes to repair or replace your phone, you’ll have the funds ready. And if nothing happens, the money stays yours.

– Is your phone already covered through your home insurance? (note, this isn’t always wise.)  Most basic home contents insurance policies will protect your phone in cases of home burglaries or fires. Some plans offer the option to pay an additional amount for coverage against accidental damage, loss, or theft outside of your home as well.

However, if you already have, or are thinking about adding, phone coverage to your home insurance, it’s important to check the excess. A high excess could make the coverage ineffective if you need to file a claim. Additionally, remember that you’ll have to disclose any previous claims during renewal, which may result in increased premiums or higher excess fees.

– Do you already have cover provided by a packaged bank account? If your bank account comes with added benefits, you might already have mobile phone insurance. However, it’s a good idea to refer to our top packaged bank accounts guide to ensure you’re getting the best deal and not paying more than necessary.

If you don’t have a packaged account but are paying separately for services like annual travel insurance and breakdown cover, and you’re considering adding mobile insurance, it could be worth checking whether switching to an account that bundles all three is more cost-effective than purchasing individual policies.

Mobile insurance need-to-knows

If you think mobile phone insurance is right for you, here are our key need-to-knows on how the cover works:

1 – Report losses within 24 hours

If your phone gets lost or stolen, make sure to report it to your network provider within 12 to 24 hours. In cases of theft, it’s also important to notify the police.

To ensure a smooth claims process, promptly report any loss or theft to the police and keep a record of any reference numbers they provide.

Contact your network provider (such as Vodafone, EE, or O2) to block your SIM card and number. This prevents unauthorized use, such as calls or data charges.

Generally, you need to report the incident within 24 hours, although some insurers may require it within 12 hours. After reporting, you’ll typically be covered for any unauthorized charges.

2 – Quick replacements cost more

If you’re in need of a quick replacement, expect to pay a significantly higher premium.

Every mobile network (like O2, EE, Vodafone) offers its own insurance plans, but they tend to be expensive, making it generally wiser to skip them. However, these plans usually provide the fastest route to getting a new phone with minimal inconvenience, as they offer replacement devices rather than cash payouts.

Therefore, if being without your phone isn’t an option, it might be worth looking into a policy from your network provider (check our overview of costs from network providers).

3 – Replacement phones may not be new

If your phone needs to be replaced, you’re NOT always promised a brand-new phone or the exact same model.

While it may seem straightforward, the process of getting a phone replaced varies depending on the provider.

Most companies will send a replacement to you. However, you’re NOT assured a new phone or the identical model – this depends on availability. If the insurer has your specific phone, you’ll likely receive a refurbished or reconditioned model, or a different but ‘equivalent’ model that matches the age and condition of your original phone.

In some cases, insurers might offer a cash equivalent instead. Generally, if they can’t provide the same phone, they should reach out to discuss how you’d prefer to settle the claim.

If your phone is damaged but not lost or stolen, and you’re covered, insurers typically try to repair it first, so you might be without your phone for a while. If you have an older backup phone that still works, you might need to use it temporarily.

4 – Pay monthly & you may need to pay the full year if you claim

If you opt for monthly payments, you might be required to pay the full annual premium if you need to make a claim.

For those who usually pay in monthly installments, certain insurers may demand the remaining balance of the yearly premium before approving a claim.

This is quite different from how most other insurance types, like car and home insurance, operate. However, it doesn’t stop you from making claims for the rest of the year. For instance, if you lose your phone again, you can still file a claim, although some insurers may limit you to two claims annually.

It’s crucial to understand how your policy works because if covering this extra cost would be challenging, self-insuring might be a better option for you.

5 – Older or overseas phones are hard to insure

To insure your phone, it generally needs to have been purchased within the last three years from a UK VAT-registered business.

Many mobile phone insurance policies stipulate that coverage is only available for phones bought within the past three years. This requirement typically applies only at the start of the policy, and you can often continue to insure the phone even if it exceeds three years in age. However, finding a new insurer for an older phone might be challenging.

For phones that are second-hand or refurbished, insurers usually require that they were bought from a UK VAT-registered company. Additionally, you may need to provide a receipt and proof of a 12-month warranty at the time of purchase.

If your phone is over three years old or was purchased second-hand without a receipt, you might consider including it in your home insurance policy. Specifically, the all-risks or personal possessions section of the policy could cover your phone, even when it’s outside your home.

Be sure to check with your home insurer to confirm this option is available. Keep in mind that higher excesses and potential increases in your policy premium upon renewal may apply.

6 – Know what’s not covered

Review exclusions meticulously, such as the requirement of a receipt for claims.

The comprehensive list of exclusions will vary by insurer, but be mindful of major exclusions. For instance, coverage might not include:

• In the first 14 or 21 days of the policy (or the excess may be higher in the first month).
• If you’ve lost your receipt.
• If you weren’t showing reasonable care, for example, it was left on a café table when it went missing.
• If you leave it in your car unattended.
• If your IMEI number, effectively your phone’s serial number, has been tampered with.
• If you do not supply, or have, the IMEI number. Some may want it displayed on the purchase invoice.
• If you try to modify or improve your phone, and it gets damaged in the process.

7 – You’re protected if your insurer goes bust

The Financial Services Compensation Scheme (FSCS) aims to ensure ‘continuity’ if a bank, lender, or insurer collapses.

In the case of mobile phone insurance policies, this means the FSCS will attempt to either find another provider to take over your policy or offer a replacement policy if your current insurer fails.

If you have any active claims or need to make a claim while a new insurer is being found, the FSCS will cover these claims.

However, there are limitations. For instance, if you’ve paid for a year’s coverage but the insurer goes bankrupt after just a month or two, you may experience a minor loss.

If the FSCS cannot transfer your policy to a new provider, you will be given time to secure alternative insurance, and you will receive 90% of any money you have already paid as compensation through the FSCS.

How to find the cheapest mobile phone insurance

There are five main options for obtaining mobile insurance. Exploring each one can help you determine which option might suit your needs most effectively.

Option 1: Compare a budget-friendly policy for your device from an independent mobile insurance company

Each of the providers discussed here offer coverage for phones that are up to three years old. Additionally, all of them provide global protection in the event of:

• Loss and theft
• Accidental or liquid damage
• Your phone stops working

Please note that all the policies outlined below include excess fees ranging from £50 to £100 per claim for the more expensive models. If you’re prone to losing your phone and find these excess amounts too high, consider moving to step 2, where you’ll find policies with lower excesses, though they come at a higher cost.

Since the premium you pay varies depending on the make and model of your phone, we’ve highlighted some more affordable providers here. While the example prices are based on the latest and most popular Apple and Samsung devices, these policies cover a wide range of brands, including Huawei, Google, OnePlus, Motorola, and many others. Explore as many of the following providers as you can…

iPhone range, incl 16, 15, 14, 13 & 12: from £60/yr

Samsung range, incl S23, S22 & S21: from £60/yr

Cheap mobile phone insurers

(i) Prices for the cheapest handset in that range, for example the 128GB storage version of the iPhone 15. (ii) An increased excess will apply if you claim within the first month of the policy start date.

Option 2: If you anticipate making frequent claims, consider choosing providers with a lower deductible

If you have a track record of frequently losing or damaging phones (who lost, broke, or had over 10 phones stolen in a decade), one solution is to invest more upfront in a policy with a lower excess. Both of these providers offer plans with a £25 excess for various phone models. Here are a couple of examples:

• Trusted Insurances: For a basic iPhone 15, you would pay £105.80 annually for a policy with a £25 excess. However, be aware that there is an additional £50 excess if you make a claim within the first 31 days of the policy.
• Post Office: For the same iPhone 15, you would pay £117.50 per year with an initial £50 excess, which reduces to £25 after 150 days. Like with Trusted Insurances, there is a £50 excess if you claim within the first 31 days.

While the higher price might seem daunting, it’s worth considering the overall cost. If a policy costs £70 per year with a £100 excess (as some providers offer) and you lose your phone twice in a year, you’d end up spending about £270 with those policies. In comparison, with these options, you’d pay roughly £120 for the insurance and £25 for the excess per claim, totaling around £170.

Cover all the family’s phones: £150/yr

Option 3: Protect over two smartphones with FAMILY mobile insurance starting at £150 per year, available through your bank account

If your family has three or more phones, a bundled bank account can be more cost-effective than even the most affordable individual policies. Additionally, it often includes breakdown cover and travel insurance. Below, you’ll find a summary of our top recommendations.

• The Virgin Money Club M account is priced at £12.50 per month (£150 annually) and provides coverage for phones and gadgets valued up to £2,000 each, including those owned by you and any resident relatives. Additionally, it offers global family travel insurance and UK roadside assistance. For a comprehensive review, check out our full Virgin Money Club M assessment.
• The Nationwide FlexPlus* account provides comparable coverage, albeit at a slightly higher monthly fee of £13 (£156 annually). It includes protection for all family smartphones, each valued up to £2,000, encompassing devices owned by you, your spouse or partner, and your children if they are under 19 years old (or under 22 if they are in full-time education). Additionally, it offers global family travel insurance and breakdown cover within the UK and EU for the account holder(s). For more details, check out our comprehensive review of Nationwide FlexPlus.

If your family owns one or two phones and you’re already covering travel and breakdown insurance, combining these accounts might be more cost-effective than purchasing each insurance individually. However, it’s important to calculate the costs yourself to ensure you’re getting the best deal.

Full info & more options are in our dedicated Packaged Bank Accounts guide.

Option 4: For those needing a swift replacement, network coverage typically offers the quickest service, albeit at a higher cost

If you require a replacement phone within a few days, opting for insurance through your network provider is advisable, as independent policies usually take more time to deliver a new device. Here’s a summary of the coverage offered by major providers, although the monthly premium and excess fees will vary based on your specific handset:

The cheapest policies from mobile networks

(1) From date claim approved.
Note: We also checked Asda Mobile, GiffGaff, ID Mobile, Sky Mobile, Virgin and Voxi who do not offer mobile phone insurance. With Sky, you arrange cover for your Sky equipment and add on the mobile phone.

Option 5: Insure your phone on your home insurance

As previously mentioned, typical home contents insurance policies generally include coverage for handsets lost due to a burglary or fire within the home. Additionally, some policies offer the option to pay extra for coverage against accidental damage or loss/theft that occurs outside the home.

However, if you’re thinking about adding phone coverage to your home insurance, take a close look at your excess. A high excess could make the coverage ineffective if you need to file a claim. Also, keep in mind that you’ll need to disclose any past claims when renewing your policy, which might result in increased premiums or higher excess amounts.

Cashback sites may pay you for signing up

As an additional benefit, users of specialized cashback sites may receive payment for enrolling in certain financial products. However, ensure that the offer is identical, as terms may vary. Keep in mind that cashback is not guaranteed until it is deposited into your account.

For comprehensive guidance on how to leverage this opportunity and to understand the advantages and disadvantages, refer to our Top Cashback Sites guide.

How to complain about your insurance provider

The insurance sector often struggles with its customer service reputation. While some clients may find their provider satisfactory, others may experience significant issues.

Frequent complaints include delays or non-payment of claims, unjustified charges, and hidden exclusions in the fine print. Initially, it’s a good idea to contact your provider directly. However, if that doesn’t resolve the issue…

You can utilize Resolver, a free tool designed to assist with managing complaints. If the company remains unresponsive, Resolver also facilitates escalating your complaint to the Financial Ombudsman Service at no cost.