Your smartphone is probably the most valuable portable item you own, with flagship models now costing £1,000-1,500. It is also one of the most likely to be lost, stolen, or broken — we use our phones constantly, take them everywhere, and the screen-to-body ratio makes them fragile. Mobile phone insurance exists to protect against this risk, but the policies vary enormously in what they actually cover, how much they pay out, and what excess you pay. At £5-15 per month (£60-180 per year), phone insurance can easily cost as much as the phone over its lifetime. Understanding what alternatives exist and whether you already have cover is the first step to making a rational decision. Our subscription savings guide covers related topics.
What Mobile Phone Insurance Actually Covers
Standard mobile phone insurance covers accidental damage (cracked screens, water damage), theft (including from your person or from a vehicle), and loss (if you have the right policy). However, there are important exclusions: most policies do not cover damage caused by a manufacturing defect (this is covered by warranty and the Consumer Rights Act), most do not cover damage while someone else is using your phone without your permission, many exclude cosmetic damage, and older phones (typically over 3-5 years) may not be covered or may have reduced pay-out values. Most policies pay out in the form of a replacement or repair rather than cash, and they often use refurbished replacement phones. Always check the excess — a £100-200 excess on a £500 phone means the insurance is only worth claiming for major damage.
Alternatives to Dedicated Phone Insurance
Before buying standalone phone insurance, check whether you already have cover elsewhere. Home contents insurance policies often include cover for portable belongings away from the home, including phones, usually up to a specified limit. Some bank accounts (particularly premium current accounts) include mobile phone protection as a benefit. Some credit cards provide Section 75 protection for purchases over £100, which covers a new phone bought on that card. Many phone manufacturers offer their own insurance schemes (AppleCare+, Samsung Care+) that may offer better terms for their specific devices. These alternatives can be significantly cheaper or free, and they avoid the problem of double-insurance where two policies cover the same risk.
- Home contents insurance: check if portable items away from home are covered
- Premium bank accounts: some include phone protection
- AppleCare+ or Samsung Care+: manufacturer schemes often better value for flagships
When Phone Insurance Is Worth It
Phone insurance is most worth it for: owners of expensive flagship phones (£800+), people in high-risk environments (manual jobs, children, frequent travellers), those without home contents insurance covering portable items, and those who have previously lost or broken a phone. If you are prone to dropping your phone, take it everywhere, or use it in risky environments, the peace of mind may justify the premium. If you have a mid-range phone (£300-400), use a protective case and screen protector, and already have home contents cover for portable items, dedicated phone insurance is probably not worth the cost. The excess and exclusions mean it only makes financial sense for expensive phones in genuinely high-risk situations.
- mobile phone insurance
- gadget insurance
- phone protection
- home insurance