Phone Insurance: What It Covers and What to Check Before Buying

Phone insurance pays to repair or replace your phone when something it covers happens: usually accidental damage and theft, and on some policies loss. Before you buy, check three things: whether another policy already covers the phone, what the policy leaves out, and the excess you would pay on each claim.

What phone insurance usually covers

• Accidental damage. A cracked screen or a drop. Most policies include it; check whether cosmetic damage, such as scratches that do not stop the phone working, is left out.
• Theft. Usually covered, often with conditions: insurers commonly ask for a police crime reference and for the phone to be blocked with your network.
• Loss. Not on every policy, and often only on a higher level of cover. If losing the phone is your main worry, check this first.
• Liquid damage and breakdown. Some policies cover a phone that stops working after the manufacturer’s warranty ends; others do not.
• Unauthorised use. Some policies pay for calls or data a thief runs up, up to a limit.

The excess, and how a claim works

The excess is what you pay towards each claim. It can differ for damage and for theft or loss, and on a cheaper phone it can be a large share of what the phone is worth, so set it against the phone’s value today. Check too how many claims a year the policy allows, whether a replacement is new or refurbished, and how soon a theft or loss must be reported.

What is usually excluded

• A phone left unattended in a public place, or out of sight in an unlocked car.
• Wear and tear, and cosmetic damage.
• Faults the manufacturer’s warranty or the seller should put right.
• A phone older than the policy’s age limit, or not bought from a seller the policy accepts.
• A theft or loss reported later than the policy allows.

Every insurer publishes an insurance product information document: a short summary of what is and is not covered. Read it before you buy, alongside the excess.

Are you already covered?

• Home contents insurance. Some policies cover a phone in the home, and away from home if you add personal possessions cover. Check the limit for a single item and the excess. Buildings and contents insurance explains what a contents policy covers.
• A packaged bank account. Some fee-paying current accounts include phone insurance. Check whether yours does, and on what terms.
• Your network or the seller. Cover may have been added when you took the phone. Check your bills, so you do not pay twice.
• The manufacturer’s warranty covers faults, not accidents, theft or loss.

Before you buy

1. Work out what the phone is worth today, not what it cost.
2. Check whether you are already covered.
3. Choose the cover you need: accidental damage and theft, and loss if that is the risk you worry about.
4. Set the monthly price against the excess and what the policy pays.
5. Check the term: some policies run month to month and can be cancelled at any time, others for a year.
6. Read the policy summary. Most new insurance policies give you 14 days to cancel.

Phone insurance through Wisemium

Wisemium shows phone insurance from BiMPY below, with what BiMPY states about its cover and price. It is one option, not a recommendation: BiMPY sets the cover, the excess and the price, and Wisemium does not give insurance advice.

Choosing the phone or the plan itself? Phones and contracts and SIM-only plans list what Wisemium shows, and Buying a refurbished phone covers what to check first.