Mobile Phone Insurance Worth It Or Not?

Do you think mobile phone insurance worth it or not? Today's smartphone is used for a large number of tasks, not just for making calls, but for photography, connecting to the Internet, sending SMS or Whatsapp etc.

We give a great value also for the information stored and sometimes use insurance is a good option, although you have to be careful with the price.

Only for the smartphones of the highest ranges, it seems to have some economic logic to get contract insurance for the mobile. And only for a time, once the mobile depreciates, it probably will not be advisable to continue having it insured.

On the other hand in the market, there are many applications that can help us both to find the lost cell, making use of GPS, how to back up and delete the contents of the smartphone when it is no longer in our power.

Why you need mobile insurance?

Possibly the most valuable object that many people carry is their mobile and a loss or theft can affect them to a great extent, not only by the loss of the device itself but by the information it may contain.

The solution may be to secure the device.

Operators have found in mobile insurance a way to do business and, by the way, loyalty to a customer who changes almost as much company as clothing.

But you have to be careful because obviously, they do not give it away, as much their cost is included in the rate that you pay each month.

Seven coverage of mobile phone insurance

You can consider mobile insurance as an investment: you pay an amount per month that theoretically you can recover at the time your mobile is stolen or any of the circumstances provided in the policy you signed.

Therefore, the first thing to do is to examine what exactly the insurance you are going to hire. The best insurance for the mobile usually offer up to seven coverage:

• Theft or robbery: the normal thing is that the operator offers you its replacement by a new device similar to the one you had in these cases.
• Fraudulent use: the insurance covers a certain amount of money used illegally by the stolen or stolen the mobile phone.
• Breakage: repair or replacement by a new device, but always under certain conditions.
• Accidental loss
• Oxidation cover
• Faulty within warranty
• Elaboration of a repair budget

An insurance policy that covers of all this (attention: because not all insurance currently marketed by the operator will do this) covers almost all of the problems that can be suffered by your favorite mobile phone throughout its lifetime.

Another factor to take into account, as we have seen above, is that the small print of the insurance is decisive when you hiring not only mobile insurance.

Make sure you have all the coverage need and that the limits are correct.

The coverage which is already included in the appliance warranty, or other insurance has been hired as home insurance should not be re-contracted.

Many insurance cover situations that are already covered in the warranty of the device

An important issue is that the insurance covers situations that are already covered in the two-year warranty that the manufacturer has to offer.

Some insurances include a franchise of 50 euros in case you have to make some repairs. If you add 50 euros at the cost of insurance, it is almost more cost effective to order the repair in any store or take advantage of the situation to buy another mobile.

Fraud in mobile usage after theft or any type of theft cases are covered only up to 500 euros. Such policies, in general, limiting coverage of such bad things, and coverage of of oxidation, for example, it only makes sense for a cell phone that has a long life span.

The policies generally do not contemplate the damages caused to the device by the sun or the rain.

Beware of the cost of mobile insurance

We come to the first element that should make us reflect.

The useful life of a mobile is not very long, especially since each month a new device, with more benefits and generally cheaper, comes to market.

So you have to decide if it really pays you to pay insurance for a mobile that initially has a lot of value but that depreciates very quickly as time goes by.

Mobiles are depreciated very quickly, it is advisable to take this into account when buying insurance
You just have to do a test.

For theft with violence or case of theft, the insurance company will require the submission of your complaint with the police. Bring your phone to a second-hand store and you will see that what they are offering to you. The offer will not be close to the price when the cost of the launch, it will even cheap.

That decision on whether or not the insurance is compensated is also a function of the type of mobile. It is not the same as a mobile phone voice than a smartphone of the top range, which is the most expensive that exists in the market. To help you make a decision, we will analyze what the insurance covers and its cost on each type of mobile. By reflecting on the policy, as we have seen before, violent robbery, subtraction, accidental damage, liquid damage, and loss by force, covers up to 500 euros.

There are insurances for the mobile starting from 3 euros per month

In a mobile phone voice or a mini smartphone, which are the cheapest appliances, the cost of insurance is usually three euros a month, about 36 euros a year.

In a basic or standard smartphone, with the same coverage as the previous one, the price of protection practically multiplies by two: five euros per month, 60 euros per year.

We have already begun to see that insurance is not so cheap, given the useful life of the mobile. 

But costs skyrocket as the range of the appliance is higher. In the case of a top-of-the-range mobile phone, which are the most expensive currently on the market, the insurance, for identical coverage as in the previous modalities, has a cost of 12 euros per month. 

Nothing less than 144 euros a year. This figure is pretty much what it would cost a second-hand mobile similar to the one you have stolen or lost.

Pay close attention to the fine print

To know if it really pays to take out insurance for your mobile phone, it is essential that you examine the small print of the policy.

So, if you lose your cell phone in a slip, or leave it forgotten at the cafeteria table, it is not theft, so many insurances do not cover that eventuality. Some policies even not cover mobile theft case.

Most insurance does not cover theft case

For theft with violence or case of theft, the insurance company will require the submission of your complaint with the police.

And generally, they will not take care of this problem until the police investigation provides evidence of the authenticity of the facts that it's really happening.

In the case of theft, the device operator will give is similar to what you had. Similar means similar, not the same.

Because here the operator applies the criterion of mobile value without offers or discounts. That is, they will not give you, in any case, a better mobile than the one you had, but will almost always be below.

In many cases, operators offering pre-owned parts of the device, although the device for the same model, whether it is new or has the same color or has brought application that has been installed on your phone.

Keep in mind also that the replacement of a device is not as easy as calling the operator and they give you a new mobile. There are queues, waiting lists, and a long process that does not always have a happy ending.