General insurance question

ag359

Was wondering today whether there was any perceived wisdom on what things should be insured and what things shouldn't.

For example, most people would think it pretty foolish not to insure house + contents and cars, but on the other hand I would think it a foolish waste of money to insure e.g. a mobile phone (assuming that you can't get it dirt cheap somehow ), on the basis that mobile phone insurers are quite clearly just making an easy profit out of you.

I was trying to come up with a rule of thumb for deciding whether to insure or not, but struggling...so help appreciated. Sorry if this is a bit too academic!!

dunstonh

If something is important to you and you will suffer a genuine loss in the event of XXXX happening, then you should consider insuring it. Otherwise, dont bother.

ag359

and I suppose that genuine loss would have to be enough, potentially, that you couldnt just absorb it by tightening the purse strings a bit. So most people can absorb the loss of a mobile phone, worth say £100.

On that basis, I cant think of much thats worth insuring beyond your house + contents, third party car (obv) and maybe fully comprehensive car, and perhaps some kind of life insurance for your family's benefit...

deemy2004

I insured my mobile for a year, now cancelled it.

Cost me £60 over the year, waste of money.

If it breaks its, in warranty, if its lost then buy a new one or second hand one, until you get the new one at the end of 12months.

dunstonh

I think any retail warrenty is a complete waste of money.

Jeryth

Would it also be useful to consider one's own financial circumstances? Could I afford to replace something with savings, or is it a better option for me to pay a little each month for insurance? sort of thing.