Which type of phone insurance is right for you?

Which type of phone insurance is right for you?

Nowadays our mobile phones are an essential part of our daily life – according to Ofcom, 92% of adults in Britain own or use a mobile phone. Smartphones store important information and can be expensive to repair or replace – this has seen mobile phone insurance becoming increasingly popular.

Are you looking to insure your iPhone or iPad, but don’t know which cover is right for you? We’ve listed the pros, cons, and other factors to consider so you can make an informed choice for your situation.

There are four ways in which this can be done:

  • With your bank account
  • With your mobile phone network
  • Home and contents insurance
  • Third-party specialist insurance


With your bank account

Some bank accounts offer mobile phone insurance as part of their benefits, in return for a monthly fee. If you have a joint account, both you and your partner’s phones could be insured for the same price. It’s also a relatively cheap option, as cover costs are roughly the same as third-party phone insurance policies.

However, don’t assume that you’re automatically covered – some banks require you to register your phone in order to qualify. Before you buy, it’s important to make sure the level of cover meets your specific needs, and that the current account conditions are also suitable. Check for details such as how quickly your handset will be replaced, or whether the bank covers unauthorised calls.


With your mobile phone network

Most mobile phone stores will offer gadget insurance to complement your new purchase. If you can’t bear to be without your iPhone for long, network policies can provide you with a replacement device a few days after filing a claim. This replaces the compensation cheque you’d normally receive.

Insuring through your network can be one of the more expensive options, depending on the level of cover you choose. Prices can vary from £3 to £15 a month, with an excess between £25 to £120. Make sure you read the small print so you know exactly what’s covered before you buy.


Home and contents insurance

Before you buy additional insurance for your iPhone, check that your home insurance policy doesn’t already provide cover. Standard policies will offer compensation if your phone is stolen from your property, while more comprehensive policies can cover in-home accidents (such as water damage). Some add-ons can also cover all your belongings – including your phone – outside the home.

This option is not cheap however – making a claim for your device will forfeit your no claims discount and push up your premiums. The excess on home policies can also be the highest out of the four options, since you need to pay the full excess just to cover your mobile. Because of this, many people prefer to keep their home insurance and gadget insurance separate.


Third-party specialist insurance

Dedicated insurance companies only provide insurance for specific products. For example, CUSC only insures Apple products, and was the first company in the UK to provide mobile phone insurance cover direct to the end-user. CUSC insurance policies covers theft, loss, accidental damage and more – so you can relax knowing your iPhone or iPad is insured against the most common situations. Our policies cost as little as £4.75 a month, with cover starting immediately after purchase.

This is usually the cheapest option out of the four choices, but this depends on the level of cover you require. Some companies will cover several gadgets up to certain monetary value for a set monthly fee, while others can cover family member’s gadgets if they live at the same address. However, it’s always important to make sure you are paying for the cover you actually need.


If none of these options suit your requirements or needs, you can also insure your iPhone yourself by setting aside some cash for emergencies. You may have to pay for calls to premium rate numbers (such as your network provider), but your money is saved within your bank account rather than with an insurance company.

You should also check your device’s warranty – they can cover mechanical breakdowns and issues that weren’t your fault. However, they won’t cover you if you drop your iPad and smash the screen, or if you installed an unofficial operating system on your device (also known as jailbreaking).


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