There are plenty of questionable insurance products out there. Some, like mobile phone insurance, contain so many loopholes that it’s almost impossible to make a successful claim, as my friend discovered.
Last week, a friend had her mobile phone stolen. And her tale of woe reminded me why I wouldn’t touch mobile phone insurance with a bargepole.
My friend left her house, phone in hand, and went to get into her car. To get the car keys out of her bag, she put her phone on her car roof for around five seconds.
At exactly that moment, a ‘yoof’ shot past on a bike, grabbed the phone and made off with it. Never mind ‘gone in 60 seconds’ – that rather expensive smartphone was gone in six.
Straight away, she tried to claim on her (also rather expensive) mobile phone insurance policy. However, the claim was promptly turned down, on the basis that the phone hadn’t been ‘in her possession’ at the time it was nicked.
The fact that it was in plain sight and two feet from her nose made absolutely no difference.
Stick to a decent home insurance policy
I feel sorry for my friend, but I’m not surprised. In recent years, many mobile phone insurance policies have got a bad press for being over-priced and riddled with infuriating exclusions.
And the thing is, why would anyone buy mobile phone insurance when you can get the same cover under your home insurance policy?
If your contents insurance includes personal possessions away from home cover, which some include in standard policies and some charge a small extra premium for, all your belongings are covered when they’re outside the house. That means your phone is covered if it’s stolen. And it also means that your laptop is covered in a café, your handbag (and its contents) is covered if you’re mugged, and your coat is covered if you lose it on a night out.
As with your main home insurance policy, individual value limits do still apply. But these tend to be fairly high, covering most laptops, let alone mobile phones.
And in my experience, personal possessions cover always works out to be far better value – because it covers multiple items outside your home, rather than just one.
Am I missing a trick? Is there some extra benefit to mobile phone insurance that I haven’t spotted? Or have other people had difficulty trying to claim on a phone insurance policy?
Would you take out mobile phone insurance?
No - I don't think I need it (54%, 228 Votes)
No - my contents insurance covers it (30%, 127 Votes)
Yes - I've already got it (13%, 54 Votes)
Yes - I want to get it (2%, 7 Votes)
I've got it, but I want to cancel it (1%, 6 Votes)
Total Voters: 422