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Mark Bower

Mark founded MoneyMaxim in 2008, with the aim of delivering an impartial and independent service. Mark is a regular money saving expert in the press and writes regular news and articles for the MoneyMaxim news pages sharing his views on banking, personal insurance and the utilities (gas, electricity, mobile and home phones, broadband and pay TV) market with customers.

Do I need mobile phone insurance? When is it worthwhile and when is it just a waste of money!

We ask whether you need mobile phone insurance. Covering your iPhone might be essential, but what should you do about your basic Nokia. Read our guide.

Compare Mobile Phone Insurance at MoneyMaxim

Do I need to insure my phone?

Well you might decide that you are well off enough to just replace it out of your own funds, or decide to save the cash you would have paid on insurance towards any potential loss. If the phone is a cheap pay as you go model your risk is limited, and the replacement cost only a few pounds, so this is probably the way to go. If however you are on a contract, particularly with a phone which allows international calls and internet usage you might decide the potential bill a thief could run up on your phone is a risk you are unwilling to take.

Additionally the high cost of replacement handsets when they are not subsidised by a network should be borne in mind – Well you might decide that you are well off enough to just replace it out of your own funds, or decide to save the cash you would have paid on insurance towards any potential loss. If the phone is a cheap pay as you go model your risk is limited, and the replacement cost only a few pounds, so this is probably the way to go. If however you are on a contract, particularly with a phone which allows international calls and internet usage you might decide the potential bills a thief could run up on your phone is a risk you are unwilling to take.

Is my phone covered on my home insurance?

It may well be – check the policy. Watch out for limits in cover – many policies only cover up to a certain figure, and be aware of the cost of losing your no claims bonus – if you have a number of phones in the family you might decide that you just don't want the risk of a large leap in your home insurance bill.

Also you are relying on your home insurance make sure you have ‘all risks' cover which means that items are insured off your property and even abroad. Make sure that the total covered is enough for your all your ‘portable valuables' We often see customers carry forward the same ‘all risks' limits from year to year, which probably covered a few bits of jewellery and a couple of watches a few years ago – completely forgetting that the kids are hopping on a train to school or college with iPhones, laptops and more besides.

You may also be covered by your travel insurance policy when you are on holiday – but again check the limits – some may have great personal possession limits, but then the small print reveals that a mobile phone will only be covered up to £100.

Isn't mobile phone insurance expensive?

It can be, and if you buy it from a high street dealer or online phone store it probably will be! Interestingly the policies sold at £12 a month are often exactly the same policy available online through companies displayed on the MoneyMaxim mobile phone comparison service at half the price!

Have a look and review your options – you will soon be able to decide what your best option is.

Compare Mobile Phone Insurance at MoneyMaxim