The ubiquity of the mobile phone in modern society is not news to anyone. And due to so many people owning handsets, we are inundated with offers from mobile phone insurance policy providers. The question is, though, does anyone need such a policy?
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
So, if you have little to no trouble with your handset, coverage is unlikely to be of much use. Not that potential risk is the only calculation a potential policyholder should weigh. They should also think about the sort of agreement they have with their service provider.
If you have a PAYG (Pay As You Go) handset, and it is lost or stolen, you have lost the handset and whatever credit it has on it. Annoying as that is, it isn't as costly as being tied to a contract phone, for which you would still be entitled to pay a monthly fee for the duration of your contract. And you would have to do this even if you had lost or broken your phone.
Such a customer would undoubtedly benefit from having coverage, as the cost of purchasing a new mobile is more prohibitive. A contracted customer who is more vigilant with their phone is less likely to benefit from such coverage, and a PAYG customer need not bother with such coverage at all. Having no contractual entanglements allows the PAYG customer to shop around for a less costly product.
If coverage is required, homeowners who have their homes insured can invoke an "all risks" choice on their policy that extends their contents cover to account for valuables that are used outside the insured premises. There is no guarantee, though, that such coverage will allow for a missing or impaired handset to be replaced.
So if you do need mobile phone insurance, you would be well advised to accept a policy which primarily covers handsets. If you don't need such cover, of course, then there is little need to spend cash on such cover. Each customer's circumstances dictate which decision is best for them.
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
So, if you have little to no trouble with your handset, coverage is unlikely to be of much use. Not that potential risk is the only calculation a potential policyholder should weigh. They should also think about the sort of agreement they have with their service provider.
If you have a PAYG (Pay As You Go) handset, and it is lost or stolen, you have lost the handset and whatever credit it has on it. Annoying as that is, it isn't as costly as being tied to a contract phone, for which you would still be entitled to pay a monthly fee for the duration of your contract. And you would have to do this even if you had lost or broken your phone.
Such a customer would undoubtedly benefit from having coverage, as the cost of purchasing a new mobile is more prohibitive. A contracted customer who is more vigilant with their phone is less likely to benefit from such coverage, and a PAYG customer need not bother with such coverage at all. Having no contractual entanglements allows the PAYG customer to shop around for a less costly product.
If coverage is required, homeowners who have their homes insured can invoke an "all risks" choice on their policy that extends their contents cover to account for valuables that are used outside the insured premises. There is no guarantee, though, that such coverage will allow for a missing or impaired handset to be replaced.
So if you do need mobile phone insurance, you would be well advised to accept a policy which primarily covers handsets. If you don't need such cover, of course, then there is little need to spend cash on such cover. Each customer's circumstances dictate which decision is best for them.
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