Phone insurance can be both a gift and a curse.
It’s quite expensive nowadays to insure smartphones as they’re deemed more costly to replace by the insurance companies then regular or feature phones so they attract a premium cost. This can be as much as 12.99 euro per month.
But is it really worth it?
Personally as someone who’s been using bill pay phones since 1997, I’ve never really needed it. There’s only one time that I may have needed it when I dropped my phone and it was driven over. But I was lucky as I had an upgrade discount waiting for me as I normally buy my phones sim free. I’ve spoken about sim free phones and their potential merits before so I won’t go over that again but I can accept that not everyone can afford a sim free phone.
But before you go and pay 12.99 per month for insurance consider a few things.
More than likely you will never need this insurance so it may be a waste of time but let’s consider you may do, remember that there’s usually an excess on the policy which can be up to 65 euro per claim depending on the provider not to mention the mine field of situations that make it null and void:
Not reporting it lost to the police within 24hrs, no more than 2 claims in a 12 month period, no cover if the sim card isn’t in the phone when it’s lost destroyed or damaged, claims as a result of undue care and negligence (whatever that means), mobiles stolen from an unattended vehicle, unless they are in a glove compartment or locked boot, water damage (some policies).
You really need to read the fine print before taking a policy out. Is it really worth it in the long run? I don’t think it is.
I think you’re better off putting the 12.99 in to your own bank account every month and saving it for a rainy day. If you don’t need it before your next upgrade you can put it towards the cost of your new phone and continue to save it.
More than likely you’re due an upgrade every 12-18 months anyway and most people could hang on till then with a more basic phone.
Unless you’re extremely clumsy with your phone I feel you should think long and hard before parting with almost 160 euro per year for something you may never use.
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