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Insuring your Mobile Phone

Our mobile phones are the probably the most expensive item we carry around with us on a day-to-day basis, yet nearly half of us have lost or had them stolen in the last 3 years.

Over 4.5 million mobile phone users are forced to replace their handsets each year; a third as a result of theft. Almost half of all street crime now involves mobile phone theft, with a mobile phone stolen every minute in the UK.

However, it's not just thieves that can deprive us of our phones; over a million mobiles a year are damaged due to carelessness: dropping them down the toilet, into drinks, or accidentally putting them into the washing machine.

TOP 5 REASONS

Top 5 reasons for loss or damage to mobile phones:

1. Lost (1,600,00)

2. Stolen (1,300,000)

3. Dropped down the toilet (600,000)

4. Damaged by spilling a drink on them (400,000)

5. Damaged by putting in washing machine (200,000)

Many people believe that if they lose their phone, their network contact can be terminated. Unfortunately, this is not the case; you will be liable to pay your monthly fee for the remainder of your contact agreement, whether you have a phone or not.

If you bought your phone with a contract, then the chances are it was subsidised. However, you will have to pay the full replacement price to get a new one, which could cost you up to £500 - just one of the reasons that mobile phone insurance is well worth considering.

There are hundreds of companies offering mobile phone insurance; just many of them will provide differing levels of cover, so make sure you look at the policy details carefully before you buy. Some of the things to look out for are:

Fraudulent Call Cover Protection

Check to see when this cover starts. Some companies will only cover you for unauthorised calls AFTER you have reported the phone missing to the Police and your provider. Your network provider should bar your phone from making any calls as soon as you report it, so cover of this sort could be fairly meaningless. Try to find a company that will insure you from the moment of loss.

If you have a PAYG handset, you may find that many policies won't insure you for unauthorised use. Some will though, so shop around.

Loss

More than 1.5 million phones are lost every year; however, not all policies will cover you for loss. Policies that do include cover may be a little more expensive, but this additional protection is certainly worth considering.

You might also want to make sure that your policy covers the following:

  • Accidental damage
  • International cover
  • Theft
  • Water damage

Reporting

If your phone IS stolen, contact the police and your network provider immediately. Your phone will be blocked so that no further calls can be made.