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Apple iPhone 6 set to take biggest bite out of mobile phone insurance claims

4th September 2014 Print

Smartphone insurance claims are expected to peak across September as Apple launches the iPhone 6 – with consumer demand set to create a notable rise in accidents, losses and thefts.

With top-end devices costing upwards of £500, Nationwide Building Society recommends people insure their mobile phones to mitigate any unfortunate incidents. In July alone, Nationwide received more than 18,000 claims.

Nationwide, which provides worldwide family mobile phone insurance through its market-leading FlexPlus packaged account, has analysed its claims data for the 12 months to the end of July 2014.

Statistics show that more than a third of mobile phone insurance claims were made in relation to an Apple iPhone. They also highlight that claims figures were at their highest in the month after Apple launched the iPhone 5S and 5C last September, indicating that a similar pattern could follow this year.

The top five devices for claims were:

Apple iPhone 5 (16GB): 16 per cent of claims

Apple iPhone 4S (16GB): 14 per cent of claims

Samsung Galaxy S4: 9 per cent of claims

Samsung Galaxy SIII: 8 per cent of claims

Apple iPhone 5S (16GB): 7 per cent of claims

The Nationwide data also shows that accidental damage accounted for around 70 per cent of claims, while around one-in-five claims were loss-related. The remainder was for theft.

Phil Smith, Head of Current Accounts at Nationwide, said: “With Apple launching its flagship model, we expect to receive a higher number of claims from customers who have unfortunately damaged, lost or had their device stolen.

“Smartphones can cost several hundreds of pounds and for something we use throughout the day – and night in some cases - it makes sense to insure them, because unfortunately bad things can and do happen. As our data shows, the vast majority of claims we receive are for accidental damage – covering cracked screens, damaged casings and a range of other potential issues that can cost significant amounts to fix in their own right.”

Nationwide’s FlexPlus account pays credit interest of 3% AER on credit balances up to £2,500 and offers a range of benefits, including worldwide family mobile phone insurance, worldwide family travel insurance, UK and EU breakdown cover, all for a monthly fee of £10.