Good cover or covered off

You have your hot little hands on a shiny new phone. And MAN is it cool. You can’t wait to choose a funky new ringtone and download a few apps. Better take out the phone insurance, right? Well… not necessarily.

Mobile phone companies often encourage you to take out phone insurance when you buy your mobile phone. The promise of peace of mind may sound tempting. But before deciding whether or not to go ahead, there are a few things to consider:

• If you have household contents insurance, you may already be covered if something happens to your phone. Check your policy to see what it includes; many contents insurance allows for damage, loss or theft of your personal belongings.
• The Consumer Guarantees Act already provides protection for consumers when they buy goods from a supplier. This includes guarantees that goods will be of acceptable quality and be fit for particular purpose. So, if your phone doesn't comply with one of these (or the other CGA) guarantees, you're entitled to ask the supplier to put it right. If the supplier refuses to do so, fails to fix the fault or to fix it in a reasonable time, or if the fault is substantial, then you're entitled to ask for a replacement or a refund.
• Many mobile insurance policies contain a raft of exclusions. You may think you have peace of mind, but when it comes to making a claim, you may find you’re not covered. One consumer had his claim refused because he was using an overseas SIM card when something happened to his phone while abroad.
• Some mobile phone companies require you to opt in to insurance at the same time as buying your phone. Contracts are technical documents and can be difficult to interpret. Make sure you don’t feel pressured into signing up before having time to understand all of the terms and conditions. You’re well within your rights to get a second opinion, before signing on the dotted line.

If you’re having problems resolving a mobile insurance issue, you can take it to the Insurance and Savings Ombudsman or the Telecommunication Disputes Resolution