I phone insurance help

Hi there

Let's use O2's insurance as an example. The price for their monthly insurance on an iPhone 3GS is £15. That's £15 every month, or £180 per year. It has an excess of £25.

On the home insurance, phone your contents insurance provider and ask their advice on whether it's already covered or not. If you have "personal possessions" cover included then the chances are that you've got the insurance already. If not, it's probably about £50 to add "personal possessions" cover for the year and it will cover you for everything you wear and carry in everyday life, not just your phone. It usually has an excess of around £50, but check your policy.

Now. Let's say you need to make a claim after 12 months. You've either paid O2 £180 already or your home insurers somewhere between £0 and £50.

On the assumption that the only thing you are claiming for is the phone, you either pay O2 an additional £25 (their excess) or about £50 to your insurers. In either case, you get a nice, shiny new iPhone.

Total cost for O2: £205
Total cost for Home Insurance: £100 at most.

Let's say that your claim is for theft of personal possessions - you are in a nice hotel in London and go downstairs for breakfast. When you come back, someone has stolen your money, phone, watch, miscellaneous jewellery, sunglasses, etc. On the O2 insurance, you get your phone replaced. On the home insurance, you get everything replaced.

So from my point of view, the specific phone insurance is a complete waste of money. If you wanted to you could put the £15 per month into a pot. Presuming you are on a 24 month contract, after 2 years you will have £360 - almost enough to buy a new iPhone, pay for a months shopping or give yourself a long weekend away (including meals).