Is Gadget Insurance a Rip-Off?
Gadget insurance is there to cover the costs of replacing your phone should it be damaged or stolen. With members of the public carrying upwards of £4,000 with them on their daily commute — as smartphones, e-readers and tablets — this puts many at risk of potential theft.
With a range of options — from standalone care, contents insurance and different cover types — insurance lets you sleep tight knowing you are covered should you need it. But is gadget insurance worth it and do you even need it?
Do You Need Insurance?
There is nothing worse than buying a new and expensive device only to have it stolen within months of usage. Particularly so if your device is rare, custom made or precious to yourself in any way. You should therefore consider gadget insurance if your gadget is both expensive and irreplaceable, if you own more than one device, or if you often travel with devices on your commute. If you consider yourself “accident prone” or have lost your devices in the past, you should probably consider taking out insurance.
Before looking into insurance, however, it is worth noting whether or not you are already covered, or if you simply want an extended warranty.
These cover you in the case of the device breaking or wearing of its own accord. If you want to cover a single expensive gadget which you treasure, you can save yourself some money by opting simply for the manufacturer’s warranty. Most manufacturers also allow you to take out an extension with their own terms. Extended warranties are insurance policies that cover the cost of replacing your gadget, even after the original warranty has run out. Be warned though, warranties often cover mechanical faults only. If you would prefer an extension that covers theft or loss, read on.
You may already be covered under your house contents insurance. Some policies even have damage cover that works worldwide for when you are travelling or commuting. You may be liable to pay a fee with your claim. You may also be covered with your packaged bank account which commonly provides basic mobile phone insurance. Before reading on, it is worth looking into what you already may have.
Types of Insurance
Now that we’ve decided whether or not you need insurance, it is time to look at the types you can consider. The monthly cost for insurance ranges from low costs of £1.50 to upwards of £15, depending on the type and breadth cover you would like. Some insurers even offer discounts for paying a premium in full. You can also get discounts when you attach multiple devices onto the same policy.
Is Gadget Insurance a Rip-Off?
In short, it depends on what you need. If you are already covered or are at less risk of theft, then no. But if you commute and hold expensive devices, mobile phone insurance and other gadget coverage offers a monthly and yearly expenditure that is far less than your device costs to replace.
Bear in mind that many providers offer tailored packages to suit your circumstance. For example; Row specialise in business insurance; Switched On offer student deals on gadget insurance and there is even gadget insurance for young children!