Is phone insurance worth it?
Phone insurance is worth it mainly if you’d genuinely struggle to replace your handset outright, or if you’re someone who’s cracked a screen more than once. For a lot of people, it quietly becomes a monthly cost that outlives its usefulness, especially once a phone is a couple of years old and worth a lot less than the premiums assume.
Insurers make their money because most people never claim. That’s not an accusation, it’s just how insurance of any kind works. The question worth asking isn’t “could something go wrong”, it’s “would I actually be stuck if it did, and is this policy the cheapest way to cover that”.
What does phone insurance actually cover?
Most policies cover accidental damage, like a cracked screen or water damage, plus theft and sometimes loss. Cover, excess amounts and claim limits vary a lot between insurers, manufacturers’ own plans and the add on option some networks sell alongside a contract.
Read the excess before you compare the monthly price. A cheap looking policy with a high excess per claim can end up costing more than a pricier one when you actually need to use it, particularly for a smaller repair like a cracked screen.
It’s worth separating phone insurance from your manufacturer’s warranty too. A warranty covers faults that are the manufacturer’s fault, a battery that fails on its own, a component that stops working with no damage involved. It won’t cover you dropping the phone in a puddle or a bag getting stolen. Insurance is the layer for accidents and theft, not manufacturing defects, and the two aren’t interchangeable.
Phone insurance: quick checks before you buy
- Check your bank account or home contents insurance. Some already include gadget cover.
- Compare the excess, not just the monthly premium.
- Check if screen only repairs are covered separately at a lower excess.
- Look at how much your specific phone is actually worth today, not new.
- Check the claim limit per year and whether it resets after a payout.
Do I already have phone insurance without realising?
Quite possibly. Some packaged bank accounts include gadget insurance as a perk, and some home contents policies extend to portable devices away from the house too. It’s worth a five minute check before you pay for a separate phone insurance policy that duplicates cover you’re already paying for through another account.
If you do have cover through a bank account, check the excess and claim limits against a dedicated phone insurer. Bundled cover is sometimes more limited, and it’s not always obvious until you actually try to make a claim.
Theft cover is worth a specific check too. Some policies only pay out if the phone was locked, or if you can show a crime reference number from the police. That’s a reasonable ask in principle, but it’s exactly the sort of detail that turns up at claim time rather than when you’re signing up, so it’s worth reading before you need it rather than after.
Is self insuring cheaper than phone insurance?
For an older or lower cost handset, often yes. If your phone is worth, say, a hundred pounds or so on the second hand market, a few years of premiums can add up to more than simply saving that amount yourself and covering a repair or replacement if you ever need one. For a new flagship phone, the maths tends to favour proper cover instead.
A rough rule of thumb: work out roughly what your phone would sell for today, then compare that to a year or two of the premium you’re being offered. If the premium adds up to a meaningful chunk of the phone’s current value, self insuring starts to look like the better bet.
If you’re due an upgrade anyway, our guide to refurbished phones is worth a read, since a cheaper handset changes this whole calculation in your favour. Our SIM only versus phone contracts guide covers the other side of the same decision.
None of this means insurance is a bad idea across the board. Families with a few phones on one account, or anyone who’s already had two cracked screens this year, often come out ahead with proper cover. The maths just isn’t the same for every phone or every person, which is exactly why it’s worth doing the sum for your own handset rather than taking whatever ad on gets offered at the till.
Frequently asked questions about phone insurance
- Is phone insurance worth it for an older phone?
- Often not. Once a phone’s resale value drops, the premiums can add up to more over time than simply covering a repair or replacement yourself.
- Does home contents insurance cover my phone?
- Sometimes, including away from home, but check the policy specifically. Not all contents policies extend to portable devices outside the property.
- What’s the difference between screen cover and full accidental damage cover?
- Screen only cover is usually cheaper and handles the most common type of claim, while full accidental damage cover extends to water damage and other faults at a higher premium.
- Do network provided insurance add ons offer good value?
- They vary. Compare the excess and claim limits against standalone insurers and any cover you might already have through a bank account, rather than assuming the network’s own add on is the cheapest option.
- Is it worth insuring a SIM only phone I already own outright?
- It depends on the phone’s value and how careful you are with it. The same self insuring maths applies whether or not the phone came with a contract.
- Does phone insurance cover a stolen handset?
- Usually, but check the specific conditions. Many policies require the phone to have been locked, and some ask for a crime reference number before they’ll pay out.
Phone insurance isn’t a scam and it isn’t essential either. It’s a genuine trade off between a small, certain monthly cost and a larger, unlikely one, and the right answer really does depend on the phone in your pocket right now.
