Mobile phone insurance is a waste of money and here is why

Mobile phone insurance is a waste of money and here is why

In 2011 I took out a 2 year contract with my mobile phone provider at the time. My contract was up for renewal, and I had decided that I would upgrade my HTC Hero, and buy, on contract the HTC Sensation XE. I had chosen this phone over the Samsung Galaxy S2 as i was won over by the Beats sound processing, the design of the phone and the fact that I quite liked the HTC Sense user interface, having owned HTC phones previously. I would later come to realise that the Samsung Galaxy S2 should have been my choice- Samsung, unlike HTC provide excellent after sales support for both hardware issues and software updates continue long after phones are released by Samsung, unlike with HTC.

The point is, at the time, when i took out the new contract for the HTC sensation XE I was offered mobile phone insurance by my provider, at £5.99 extra each month. There was no excess for me to make a claim. The one time I had to make a claim, when the HTC sensation XE refused to switch on due to water damage, I was sent a replacement phone by courier the same day the claim was made. £5.99 on top of a £30 per month contract was at the time a sizable amount of money to pay each month for an android phone. I thought i was getting a good deal at first. In truth I cancelled the mobile phone insurance 1 year into the two year contract because i realised that actually, mobile phone insurance is actually a big waste of money

In 2018, mobile phone insurance is nothing like it use to be. A quick comparison of mobile phone insurance policies online indicates that most policies for an iphone X start from at least £9.99 a month, and there is an excess which would apply for a claim to be accepted by the mobile phone company. Excesses typically vary from between £25 up to £100 per claim. Then there is a maximum number of claims you can make in any given year. Typically 2-3 claims permitted. When you add up all the sums, mobile phone insurance looks to be a major money drain. £120 on average each year in monthly costs, plus the excess of £50 means its serious money you are shelling out to safeguard yourself against theft or accidental damage to your smartphone. So, what is the smarter way to protect your phone and also have a contingency just in case your phone gets lost or stolen?

Save your money and take back control

No- literally- why not open a savings account, and put that £9.99 a month which would have gone towards mobile phone insurance, into a pot you can dip into in the event of theft or damage? Over the course of 2 years you may have saved over half of the cost of a typical flagship smartphone, and almost certainly you’ll have enough to pay for the repair of a broken LCD screen. With this approach, the money is completely within your control, and if you don't need to replace a damaged or stolen phone then you'll have some cash set aside to put towards your next smartphone or some other expense.

Invest in a case

Of course we would say this, but seriously. A well made smartphone case will provide your phone with protection whilst also adding some personality and style to your handset. Cases are inexpensive and provide protection from accidental damage. Investing in a nufftuff case means a one off payment which will ensure your smartphone is protected throughout its lifetime. Our design philosophy at nufftuff keeps these two factors as guiding principles for the cases we make. Our Lite, Impact and Duty ranges of cases each provide a rated level of protection, and each has their own unique design and look to allow you to choose the best case for you, and one which fits your smartphone but also your lifestyle. Our cases are competitively priced and we are the sole distributor of nufftuff cases and so you know when you buy from that you are genuine products.


So, sure- you have spent a small fortune on a new smartphone, or smartphone contract and mobile phone insurance seems like a sensible decision at first glance, but when you do the maths, the costs associated with it, just don't add up. You're better of saving your money in a savings account, buying a case, and taking good care of your phone.