Benefits of insurance for your mobile phone rings true

With more mobiles than people in the UK and 800,000 thefts per year, it is surprising how complacent Britons are about insuring their phone.

Research into mobile phone insurance by moneysupermarket.com reveals more than two thirds of Brits (69 per cent) do not have insurance. Of these, 13 per cent say their phone is covered by another insurance policy.

Although most contents insurance covers mobiles, this is generally only for theft, loss and accidental damage. As the table below shows, mobile insurance offers more extensive cover such as international cover, out of warranty repair and unauthorised use cover.

The research reveals a misconception about the cost of mobile insurance with over four in ten (42 per cent) saying they didn't renew their insurance because it was too expensive and nearly three in ten (28 per cent) never having had it for the same reason. Yet Asda and FoneShield offer annual cover for less than £36. Both policies also cover you for technical faults and the value of cover, of up to £350, is £150 more than the average cost of replacing a handset.

Rob Barnes, head of mobiles at moneysupermarket.com, said: “Despite the large number of mobile phone thefts, the research shows most people do not worry enough about the costs they could face due to loss or damage. With nearly four in ten people (39 per cent) saying they do not need insurance, it is clear Britain has a very relaxed attitude towards phone security."

Compared to customers from O2, T-Mobile, Orange and Vodafone, the poll found Virgin users are the least cautious with almost half of them (49 per cent) saying they do not need insurance.

Barnes said: “Those relying on their contents insurance should remember not all policies automatically cover your mobile. My advice would be to ring your insurer and find out exactly what the contents policy covers and when.

"If it is not part of your contents insurance or you are looking for more comprehensive cover, you may wish to consider one of the mobile policies.

“As handsets come free with most tariffs, it seems people do not realise the true value of their phone. If you do not have insurance and your phone is stolen or damaged, you would need to buy a sim-free handset, which could cost over £200. The latest must-have phones, such as the Nokia N95 and a LG Prada, cost over £400 sim-free.

“With this in mind, it is ludicrous to have no cover at all. Before signing up for an insurance policy, people should read the small print and make sure they are covered for even the most trivial accidents.”