Should you buy iPhone insurance? If you're worried about losing or damaging your iPhone, you're probably wondering just that. Here, we've got expert advice on the different iPhone insurance options and how to find the best insurance deal to suit you.
Consider the different types of 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 for those living in dangerous neighbourhoods, for example.
It’s also worthwhile considering add-ons like worldwide cover, a phone 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.
Remember that price isn’t just the monthly direct debit but also the excess which you’ll have to pay in the event of an accident. For example, a policy from Protect Your Bubble costs £7.99 per month but charges just £50 for excess in the case of damage or breakdown (it goes up to £75 for loss or theft).
Policies with lower monthly costs often see excesses rise up to £100, and offer maximum cover as low as £450, so may be a false economy.
Look at multi-policy
You’ll often get a cheaper deal 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
Some of these banks will cover two iPhones on joint bank accounts but beware – policies and the level of protection will vary.
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 warranty period, Apple will cover you for manufacturing defects. AppleCare+ users will also be able to replace an iPhone if it has suffered accidental damage. Here's how to find out if Apple will replace your iPhone for free.
Another avenue is home contents insurance. You could add your 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 usually higher and could result in higher future premiums.
Beware loopholes 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 phones that are six months old 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, though that's a minor concern on iOS, and a handful will only cover theft and unauthorised data costs if reported within 12 hours.