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Do I really need mobile phone insurance?

You may not even know you have it...

If you have a smartphone, the chances are you may have signed up for insurance with your provider when you originally got your plan.

This makes sense - some devices could be worth hundreds, so any loss or damage would be costly, and insurance can cover you for that.

However, mobile phone insurance that’s sold through phone providers can cost up to €15 per month, so it’s worth considering if you really need it.

If you’re paying €10 month for insurance, this will amount to hundreds over the course of your contract. So, if you’re coming towards the end of your contract, consider whether you really need to keep this insurance.

At that point, if you’re on a standard contract, your handset will be about 2 years old, and may not be too expensive to replace or repair in the event of an accident.

Also, if you have gadget insurance, or contents insurance for your house, check if this would cover your phone. If so, you could be double-paying, so you could cancel the insurance with your mobile phone insurer.

If you do decide that you need separate mobile phone cover, the following information could help you to save on this:

Did you sign up when you got your mobile phone plan?

If you signed-up in-store, it’s possible that the plan you’re on is significantly more expensive than one you could get online.

Check your monthly payments - you might be surprised by how high they are! - and see if you can get a better deal elsewhere. There are loads of mobile phone insurers around, with plans starting as low as €2 per month for loss or theft.

Consider what you need to be covered for

Are you trying to cover yourself for all eventualities, like breakages, phone faults, loss, and theft of the phone? If so, your insurance is likely to be higher.

Remember, you have a warranty from your manufacturer, so it’s likely any fault with the actual handset will be covered by this for a specific period of time, usually 12 months (although sometimes longer).

And, in terms of breakages, it’s possible that you could get these repaired for less than it would cost to insure the phone for the life of the contract.

Reducing what you’re covered for will lower your premiums, while still giving you the peace of mind in case your phone is stolen or lost.

Increase your excess to reduce your premium

All insurance policies will have an excess. Sometimes, insurers will allow you to increase this excess - which is the initial amount you have to pay towards any claim - in exchange for reduced premiums.

Think about whether this is something you can live with - it will mean an upfront cost when you make a claim, but could work out cheaper over the lifetime of the plan.