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.
There is no point in taking out mobile phone insurance if you are not going to be paid out when you make a claim – so we have produced this guide which highlights some of the main reasons claims fail, and how you can take steps to make sure your claim, should you need to make one, goes as smoothly as possible.
Often when searching for insurance we get too fixated with the price rather than the cover on offer. The most common reason that claims fail is that the policyholder is not actually covered for what they are claiming for. Some policies cover lost phones – some don't – some cover water damage (and dropping a phone down the loo from a back pocket is one of the most frequent causes for claim) – some don't. So the first tip is to get the right cover for your needs.
When you apply for mobile phone insurance most companies require the phone to be less than six months old, and most have different scales of premium dependent on value. They won't ask you to prove this up front – they take your word for it – but when it comes to a claim they will want to see the original receipt to ensure it corresponds with what you have told them, and to make sure they are replacing the phone like for like. If you have already lost the receipt then its probably not worth taking out insurance in the first place unless you can get a copy. And try to be accurate when assessing the value for your phone – the insurers will have a good idea of what it was really worth when you bought it!
If you change your phone tell your insurer – often people forget to do this – and the insurer won't pay for a phone they don't have on their records.
If you need to make a claim get out your policy paperwork and follow the rules – if you need to report the phone stolen within 24 hours make sure you do – and let the insurer know within their set timescales too. Get the required paperwork – police reports, crime numbers, copy of mobile bills to back up your claim. Remember if you are only covered for theft and not loss a lost property number will not suffice – the police need to believe its a crime!
The time to make sure your are ready to make a claim is before you need to do so – we suggest you read any policy you take out carefully to make sure it does what you want it to. Do so immediately you have received it, as you have 14 days to cancel it and buy a different one if it doesn't. And remember to reread it if at any stage you change your phone. You can always use our ‘Prompt Me' service to make sure that when your mobile phone contact expires you send yourself a prompt by text or e-mail reminding you about the insurance.
Doing this should both reassure you that you don't need to panic in case of a claim, and let you sleep easy in the knowledge that your insurance policy is the right one for you.