Is Phone or Gadget insurance worth it?
There has been huge growth in the market for phone and gadget insurance in recent years, with sales now making up $31bn worldwide, and purchases growing at 10% per year, but is it worth it? It’s certainly tempting when gadgets and phones in particular have been getting more and more expensive.
In this article we’ll look at how different options for gadget and phone insurance stack up compared to the cost of fixing the phone yourself or replacement it, as well as what to look for in a gadget or phone policy.
How much does it typically cost?
We did some research with providers, for an example iPhone 6S, and found that there was quite a range! We found the quotes varied between £59 and £113 per year, which shows that whatever you decide, it’s definitely worth shopping around.
What a lot of people don’t know, is that you can add phone insurance to some home insurance much more cheaply (spoiler alert – ours is one of them). Based on a quick sample of quotes for our iPhone 6S in different postcodes, it would typically cost £12- £37 per year to add to your policy, so significantly cheaper than standalone cover
What if I just ‘self-insure’?
Self-insuring is where, instead of paying for insurance, you put the money in a savings account. You can then raid the savings account if something goes wrong.
We think that the two most likely things to go wrong, are for your screen to smash, or the phone to get stolen.
Getting a screen replaced on an IPhone 6S at iSmash costs £99.99, and to replace a stolen phone with an equivalent reconditioned second hand one costs c.£270.
So if you think you will smash your phone less than once every 18 months and lose your phone less than once every 5 or 6 years, it may be worth self-insuring (though you actually have to save the money!).
As a little side tip, if you’re about to replace your phone just because the battery is giving up, you can get replacement batteries fitted for £50 or less, that can make your phone feel like new again!
What features should I look for in phone insurance?
There are a surprising number of variables in phone insurance products, so it’s important to understand what you’re buying. The main variable are:
- All phones or just new ones? Lots of policies only insure phones which are less than a year old
- New for old, or replacement value? Some insurance policies pay out the cost of buying a new phone, others just the cost of an equivalent replacement.
- Cash or replacement phone? Some policies pay out cash, and you can use it to do whatever you like, others send a replacement phone or manage the repair themselves.
If you do choose an option with replacement phones or repair, do make sure that you are happy with the service terms. How long will they leave you without a phone for? What quality of replacement phone will you get?
What is our cover like?
As discussed, it’s pretty cheap to add phone cover to our policies.
Our phone cover is new for old, allows any age of phone, and pays out cash rather than replacement. We think that’s a pretty good mix, but you should think if it’s the option best suited to your needs.
To get a quote for your home cover, including your phone or gadget, hit the button below now.
Urban Jungle is a home insurance business, specialising in renters and sharers. We’re using technology to make insurance better for young people.
We offer great quality home contents insurance at competitive prices.
To get a quote click the button below.
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