When signing up to a new mobile phone contract, you’ll probably be hit with a hundred reasons why you should get insurance. In the opinion of WhatPhone, paying the extra $5 – $7 a month is likely to be a waste for many – but not necessarily all – phone users.
How ‘attached’ are you to your phone?
For most of us, the odds of losing a phone during the period are pretty slim – it’s become like an extra hand and we quickly notice when we don’t have it. Unless you’re super forgetful, careless, known for often having a few too many, or accident prone, there’s an excellent chance that your phone will be in complete working order by the time your contract is up.
Insurance excess + monthly premiums = how much!
If you do lose or damage your phone, the cost you pay to get it replaced could be worth more than the actual phone. Along with the monthly fee, there is also an insurance excess amount you’ll have to pay. This can be anywhere from $50 to $150, and coupled with what you pay each month, your new replacement could end up costing you more than $250.
In addition the new phone you get won’t necessarily be a top of the range new model. Read the fine print to find out if you might instead receive a handset that is ‘comparable’ – perhaps the same old model, or even worse, a refurbished model.
Is it already insured under another policy?
There is also the chance that your phone is covered by another form of insurance. For example, if you lost it while on holiday, travel insurance may cover the cost. Or if it was stolen out of your home, contents insurance may provide you some cover – but check your policy as mobile phones may be specifically excluded from some policies.
There are a number of other little reasons why phone insurance might not be viable. You might have to buy a new charger, or headphone set if your replacement phone is a different model. You might have to jump through hoops to actually collect the insurance. And you might end up hating the new phone you’re left with.
So, next time you sign up for a new deal, remember to ask yourself if you really need mobile phone insurance.