Mobile Phone Insurance

Many online mobile phone retailers offer a free 3 month mobile phone insurance when you take out their contract. We all like freebies but you should be aware of a few things that may relate to your policy.

First of all in many cases the direct debit is automatically set up so that at month 4, an insurance premium will be taken out of your bank account to continue the  insurance policy. Many of the reputable providers do send a letter to you reminding you of this fact prior to this time, but of course commitments may mean you miss this. If you do not wish to keep the policy past this date, make sure you have read the terms and conditions and in many cases, you are required to contact your own bank and cancel any direct debit information before this date.

Free mobile phone insurance may be limited

Next the actual insurance cover for your mobile phone may be more limited than you think. We have had policies where if your phone was stolen out of your hands or back pocket you were not covered, if you left your phone in a public place it was not covered etc. Of course every policy if different and you should read yours, but if you are wanting insurance ensure it fully covers your mobile phone for the risks that may occur within your lifestyle.

Your home insurance may cover you for your mobile phone

Some home and contents insurance polices will cover your mobile phone in certain circumstances anyway, so this may be another policy to read to see if you need extra cover at all. Of course you should be aware that if your phone is stolen or broken you are still accountable for the monthly rental for the period of that contract and if your phone is stolen, the call charges made from that phone.

Check your travel insurance for mobile phone coverage

If you travel out of the country check your travel insurance to see if your mobile phone is included within its policy and to what value. Remember your mobile phone may be worth several hundred pounds to replace outside of a new contract.

Mobile phone crime is one of the largest types of crime in the UK with many people lit up like a Christmas tree as they make calls in the dark and not concentrating to the potential thieves around them. With pay as you go sim cards being readily available, some as cheap as $1, there is a huge demand for second hand or stolen mobile phones. Mobile phone insurance is a way of at least receiving some financial compensation for these crimes or accidental loss, but please take the time to understand what your policy covers you and your mobile phone for.