Do You Need Mobile Phone Insurance?

If you have just purchased a new mobile phone, chances are you are going through the checklist of things you need to do. Finding the best plan, buying a nice case, and downloading all your favourite apps. But have you considered purchasing phone insurance?

Phone insurance typically protects you from the main events that can go wrong when owning a mobile phone: accidental damage, theft, and liquid damage.

Who should consider mobile phone insurance?

The decision to purchase phone insurance is one that only you can make, based on how expensive your phone is, how likely you are to damage it, and how you would cope if your phone was damaged or lost.

Take into account the following points when deciding whether you should purchase phone insurance:

• Do you have a history of lost, broken, or stolen phones?
• How expensive is your phone? If it is a higher end model, phone insurance may be a more tempting purchase.
• Can you afford to replace your current phone in the event of it being damaged, lost, or stolen?
• Do you reply heavily on your mobile phone? If it was stolen, would you be able to afford a replacement immediately, or would you need to save for a number of weeks or months?

If your phone is a older model, worth $300 – $400, and is just used for personal use such as text messaging, phone calls, and a bit of gaming, then phone insurance might not be something you necessarily need.

However if you own a reasonably new smartphone worth over $500, which is used daily (or in some cases, hourly!) for both personal and professional reasons, then phone insurance could be worth considering.

Is phone insurance value for money?

Value for money is about more than just price. You need to know exactly what you are getting for your money, and consider how much you would be inconvenienced should you not have phone insurance and need to make a claim.

If you purchase your new cellphone from a large carrier or retail no doubt you will be offered phone insurance. It’s always a good idea to shop around and find a deal that isn’t only the cheapest, but provides great coverage too.

Why is phone insurance important?

For many years the prices of smartphones were declining, as more and more competitors entered the market and began offering similar spec models to the leading brands, but at lower prices.

However over the past few years prices have started to climb again, and now smartphones can be purchased for over $1,000 at most leading retailers in New Zealand.

This new increase in the average price of cellphones means that phone insurance is more valuable than it once was. Losing a $300 phone won’t cause too much pain, but losing your new $900 smartphone with all the bells & whistles (and perhaps the expensive accessories that come with it) wouldn’t be a nice experience!