You may be wondering why you need phone insurance if you already have a manufacturer’s warranty. After all, why would you need it?

Breakdown cover

A manufacturer’s warranty may be applicable for a certain time period after you buy the phone. Accordingly, if the phone malfunctions during that time, the warranty may be what you use to get it right.

However, what happens if your phone breaks down outside of that period? If you do not have any phone insurance, you either:

– get out that set of miniature screwdrivers you got in a Christmas cracker and have a go at mending it yourself (which it a terrible idea); or
– accept that you will either need to pay for repairs or get a new phone (also a terrible idea).

Alternatively, if you have phone cover, it may typically include cover for breakdown outside of the manufacturer’s breakdown warranty period.

Theft cover

Insurers may vary according to the heads of cover they typically provide, but theft cover may be among the risks that are protected.

Whilst you may be as careful as possible with your phone, it may be worth reviewing the insurer’s terms and conditions to check whether they have any specific criteria for paying out for claims for theft. You may find that an insurer may only cover a theft that occurred from an unattended vehicle if the phone was securely locked away, for example.

Accidental damage

Next you may wish to consider what may happen if the phone was damaged. No matter how careful you are, accidents happen, and without adequate phone cover you may have to pay out for a replacement from your own pocket. With phone insurance in place on the other hand, the insurer may pick up the bill.

When it comes to accidental damage that is caused by liquids, for example, some insurers may exclude this heading whilst others may offer it as part of their cover.

Loss

Cover for loss of your phone may be included as an optional extra. Accordingly, you may have to pay an additional premium for this cover, and specifically elect to include it when you take out the insurance policy. Just because you have cover for loss it does not mean that the insurer will provide another one whenever you demand. Some insurers may limit how many claims you may be able to make on your phone insurance in a twelve month period.

As with any insurance product, terms and conditions, exclusions and limitations will apply and you may wish to read these carefully to ensure you understand them.