Mobile phone insurance, is it worth it?

student100

Hi

Sorry if this has been discussed before - I haven't been on the forum for a while and the search didn't turn up anything.

I am thinking of getting a nice new phone (Christmas present!). It's actually a swanky PDA/phone that will cost £200 (including a sat nav kit) on a £27.50 (actually £25 - £5 off + £7.50 for internet) a month, 18 month contract (T-mobile).

I'm trying to figure out whether the mobile insurance is worth it. For a phone of that nature the going rate seems to be £7.99 a month; a fair chunk of money. I've never yet lost a phone (or ipod etc... although the ipod is insured, somewhat more cheaply than phone insurance seems to be!) but I'm very aware of Murphy's law...

I'm aware that if I lose the phone and it's uninsured, I either have to pay full whack (about £460 in this case) for a new phone, or continue to pay the contract at £20 even though there is no phone to go with it. I've figured out that in order for the insurance to be worthwhile, I'd have to lose the phone in the first 11-ish months (when you take into account of the excess, the amount you've paid for insurance by then, and offset it against the cost of paying off the rest of the contract).


Just wondering if anyone had any advice really... is this insurance worth it? I know it's a bit of a gamble. Does anyone know of any phone insurance that's much cheaper, or any ways to make losing the phone "cheaper" (e.g. do they let you reduce the cost of the contract below £20 a month for any remaining months if you're not using it?)

teeb

First thing, if you have home contents insurance, ask if your mobile is included in it. Chances are it isn't, but you never know.

Er, over that? I'd say on PAYG that insurance isn't needed - in 3 years and 3 phones I've never lost or broken them, so I've never had insurance. I guess I've been lucky.

I moved to contract recently and had to seriously consider getting insurance. Thing is, I just don't believe it's worth paying the £2.50 a week [or however much it is] over 18 months as it turns out to be a fair chunk of cash - at least £150 if my mental arithmetic is right. I don't plan to lose my phone [who does?]. It is, I guess, a bit of a gamble - but the thing is my phone is either in my jeans pocket, from where it is rather difficult to escape, knowing the tight jeans I wear, being used, or charging, where it's not likely to vanish from. So I guess I'm gambling on the fact I won't lose it over the next 18 months. I can appreciate that you might have a different opinion, especially for something that's costing you £200 in the first place.

As for insurance, if you are getting it, remember you don't have to get it from the outlet where you got your phone - a quick google found I could save a tenner a month over what CPWH were offering me.

reehsetin

http://forums.moneysavingexpert.com/showthread.html?t=202108

olly300

No it's not.

All you need to do is contact the mobile operator if your phone is lost or stolen asap then get them to stop the old sim so noone can call out on it, and issue you with a new one. Then get an old unlocked phone and put your new sim in it. Someone you know will have an old phone if you don't. Alternatively buy an unlocked phone second hand from ebay or somewhere.

Some operators let you reduce your tariff after a certain number of months in your contract others don't.