Call for Better Mobile Phone Insurance

Toddler on mobile phoneMobile phone and gadget users across the country face a regular dilemma: Do they opt for cover with a specialist policy or hope for the best with their home contents provider.

The mobile phone insurance market is split with latest figures showing one in four users take out specialist cover; a figure that’s up from just 3% in 2006.

Independent financial research company Defaqto reveals that home contents insurance does not offer the same level of cover as specialist mobile phone insurance, which could leave many with insufficient cover.

Mobile phone insurance offers advantages that are rarely provided by home contents insurance, such as:

  • Electrical and mechanical breakdown cover
  • Safeguards against the cost of unauthorised calls
  • Data back-up services

While these benefits are available through a broad range of dedicated mobile phone policies, there is potential for insurers to make these benefits more universal.

However, interestingly Defaqto’s research also shows:

  • 27% of mobile phone insurance policies offer no cover for electrical or mechanical breakdown
  • 30% of contract phone policies and 41% of pay-as-you-go policies offer no cover for unauthorised calls
  • 76% of policies do not include data back-up

Defaqto analysts Mike Powell said: “Although cover is widely available within home contents policies, this can be restrictive both in the home and away from it. Also, if cover is required outside of the home, this is usually subject to the policyholder paying an additional premium.

“While some of the main perils such as accidental damage, loss and theft are covered under home contents policies as standard, it is the cover provided against electrical and mechanical breakdown, unauthorised calls and services such as data back-up and technology support where real differences start to appear.

“Any customer who is considering purchasing a mobile phone and wants to protect their device should look at mobile phone insurance as the benefits and cover features are wider ranging.

“At the same time, the industry needs to make sure that the advantages its products present are clearly communicated to consumers if it is to see further improvements in the take up of mobile phone insurance.”

If you’ve got any thoughts on mobile phone and gadget insurance we’d love to hear them via the comments feature below.

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