With the purchase of high end smart phones on the rise it’s no wonder that more and more people are deciding to take out insurance policies to protect their mobiles.

Getting cover against theft, loss, and damage can protect you from having a hefty bill should something go wrong.

However, your phone may not be getting the protection you think you’re paying for. We’re all guilty of not reading the small print before signing something, but you could find yourself with an unexpected bill if you’re not covered when you thought you were.

Here are some things you need to bear in mind when taking out an insurance policy for your mobile phone.

Know your excess

You need to check whether you’re going to be charged an excess when you make a claim, how much that excess will be, and whether it will increase if you claim again. With some policies the excess will double if you claim more than once in a year.

Act quickly

Most policies are time sensitive so if your phone is lost, stolen, or damaged you’ll need to contact your insurance provider as soon as possible to be able to make a claim.

Where can I get insurance?

There are a few different places that you can buy an insurance policy for your mobile phone and they all have their pros and cons.

1. Mobile phone shops

When you walk into a mobile phone shop and buy a gleaming new handset chances are the sales person will also try and sell you an insurance policy.

The pros include replacing your handset quickly, even if you’re abroad when something goes wrong.

The cons are that this can prove to be a more expensive option, especially if you have an iPhone. You may also find you’re not covered against calls if the phone is stolen and your excess may double for multiple claims.

2. Packaged bank accounts

This is a current account that you pay for and comes with perks. It might be a worthwhile option if you have multiple expensive phones in the family as dependant children’s mobiles are also covered.

The pros include it being cheaper than insurance bought through a mobile phone shop. The whole family is covered and you’re covered against calls made if the phone is stolen.

The cons are the exclusions. You can only claim twice in a year, your phone must be reported stolen within 24 hours, and if your phone isn’t locked away then your policy is invalid.

3. Standalone mobile phone insurance

There are a number of companies that offer you phone insurance outside of your bank or mobile provider.

The pros are that it may be the cheapest option and that claims won’t affect your household contents insurance.

The cons are that replacing your phone won’t be as quick as other insurance policies and you may get a refurbished handset. If you’ve got a cheaper phone it may not be worth taking out this type of policy.

  • http://www.guardian.co.uk/money/2012/jan/20/mobile-phone-insurance
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Rob Rudd writes regularly for several technology and gadgetry web sites. He lives near the sea on the south coast of England.