Consider the different types of iPhone insurance cover

Before taking out a policy you need to think about how you use your iPhone, its value and the risks. Most policies will cover for liquid, damage and theft but cheaper packages – starting at around £4 a month - will often only offer theft as optional or leave it out entirely. This might be a deal breaker, say, for those living in dangerous neighbourhoods.

It’s also worthwhile considering adds-on like worldwide cover, the need for a replacement service (some insurers take longer than others) and the amount you’re willing to pay.

Weigh up risk versus price

As part of this consideration, you need to weigh up the cost against the likelihood of needing to take out a claim. Figures from SIM-only operator GiffGaff showed that 80 percent of smartphone policy holders never take out a claim.

But remember that price isn’t just the monthly direct debit but also the excess which you’ll fork out in the event of an accident. For example, a policy from Protect Your Bubble costs £15.99 a month but charges just £25 for excess. More affordable policies see excesses rise up to near £100, and offer maximum cover as low as £450.

The iPhone is not cheap: how can you protect that investment?

Look at multi-policy

You’ll often get a cheaper policy if you protect your iPhone in a multi-device policy. Vendors like Protect Your Bubble and Gadget Cover offer affordable – and flexible – packages which protect your smartphone, tablet and PC.

Think outside the box

Think outside the box on who offers phone insurance. Tesco has numerous packages, while UK banks Barclays (with Current Account Plus), Halifax (Reward Current Account), Nationwide (FlexPlus), and NatWest (Select Silver) do too.

Some of these banks will cover two iPhones on joint bank accounts but beware – policies and the level of protection will vary.

A smashed screen isn't necessarily the end of your iPhone. A number of insurance policies will cover the costs of repair or replacement.

What have you already got

There’s a tendency to think that you must get insurance as soon as you’ve bought the latest iPhone. Or, at least, that’s the message from carriers with a hidden agenda.

And while, yes, an affordable and comprehensive policy wouldn’t go amiss, it is sometimes worth looking closer to home.

For instance, should your iPhone break down within the 12-month warrantee period Apple will cover you for manufacturing defects. AppleCare+ users will be able to replace an iPhone if it has suffered accidental damage.

Another avenue is home contents insurance. You could even add the iPhone to your policy by opting for it to include personal possessions cover, which applies to items lost, stolen or damaged in the home. Be careful though – home insurance excess fees are higher and could result in higher future premiums.

Beware loop holes in terms and conditions

Most standalone policies are reasonable, but some have small loopholes with big repercussions – the Financial Conduct Authority has previously reported that many mobile insurers have misleading terms and conditions.

For example, some firms only insure new phones six months or newer, while others won’t pay out on an iPhone lost in the first 2-3 weeks. iPhone car theft is sometimes only covered in a locked car and when stored in the glove box.

A few insurers don’t protect iPhones from computer viruses, a minor concern on iOS, and a handful (Cheaper Gadget Insurance, Mobileinsurance and Talkcover) will only cover theft and unauthorised data costs if reported within 12 hours.

For more information about whether to take out iPhone insurance read our article: is iPhone insurance worth it.

If you have damaged your iPhone you may find that Apple will replace it for free: find out if Apple will replace your iPhone for free here.

We help you decide which iPhone Insurance policy is best for you here.