Is Mobile Phone Insurance Worth It?

Every year, smartphones are becoming increasingly expensive. Considering that for many of us, our phones are the most valuable item we carry every day, it’s scary to think how easily they can be damaged, or worse, stolen. This is where mobile phone insurance comes in. 

In this blog, we’ll look at how phone insurance works, how much it costs, whether it’s included in your home insurance package, and how to tell if you actually need it.

What is Mobile Phone Insurance?

Just like any insurance policy, phone insurance is essentially insurance cover for your phone in case it’s damaged, lost, or stolen. So, for instance, if you were in an accident and your phone gets damaged, your phone insurance provider will cover the cost of the repair or provide you with a replacement phone.

You can get phone insurance from your network provider, your manufacturer, such as Apple or Samsung, phone retailers, the bank, as well as specialist insurers. Regardless of who you decide to buy the insurance from, you will need to pay a monthly premium, and you only need to pay the excess when you make a claim. The exact cover varies by provider, but typically, phone insurance protects you against theft, accidental damage, and other common mishaps.

How Much Is Phone Insurance?

Depending on who you go with, phone insurance can cost anywhere between £3-£6 to £20+ per month for phones with RRP of £300 to £800+. Typically, prices will depend on how expensive your phone is and the level of cover you go for. Factors like excess cost and claim limit will also affect your insurance cost. If you want features like worldwide coverage, the price will tend to be higher than a basic policy.

Here’s a breakdown of some of the most popular phone insurance options on the market right now:

Prices correct at the time of writing

What Does Mobile Phone Insurance Cover? 

While the exact contents of the cover depend on your insurance provider, most policies protect against common mishaps that could leave you without a smartphone.

• Accidental Damage 

If you accidentally drop your phone and have insurance for it, your provider will cover the cost of repairing any scratches or cracks to your screen as well as damage to internal components.

• Liquid Damage 

Most phones nowadays come with an IP68 rating, but if there is any damage to your phone after you’ve spilled a drink or accidentally dropped it in water, your provider will cover it.

Credits: Repair Express

• Theft 

If your phone gets stolen, you must report it immediately to the police and your insurance company as they will issue you a replacement phone in the meantime.

• Loss 

Depending on your insurer, you may be covered if you lose your phone. However, this will likely increase your monthly cost.

• Mechanical Breakdown

In addition to the manufacturer's warranty, some insurance policies also offer protection if your phone develops a fault. However, there are exceptions, such as everyday wear and tear, cosmetic damage that doesn’t affect functionality, and damage caused by unauthorised repairs. You will also be exempt from the cover if you’ve left your phone unattended in public spaces.

Does Home Insurance Cover Mobile Phones?

In most cases, your phone is already covered if you have a home insurance policy. But, it only applies to certain conditions, one of which is that your phone is only covered while it is inside your house. So, for example, if your phone was stolen during a break-in, you can make a claim. If you want your phone to be covered outside the house, you may need to add a personal possessions cover. You can include any valuable items in this, such as jewellery, laptops, accessories, etc.

Overall, home insurance seems like a better option due to its comprehensive coverage. However, you must consider a few things. You could be paying over a hundred pounds in excess if you make a claim, and this could increase your premiums in the future. If you have a very expensive phone, such as the latest Galaxy S26 Ultra, you may need to list it separately on the insurance.

The Galaxy S26 Ultra’s Screen Decides Who Gets to See It

Samsung’s Galaxy S26 Ultra has a Privacy Display built in- but how well does it do its job, and what’s the catch?

4 MIN READ

Pros and Cons of Phone Insurance

As with most things, there are certain advantages as well as downsides to having insurance for mobile phones. Before you take out a policy, you should be aware of these so you can weigh out your options.

Pros

• Financial protection

Smartphone repairs usually cost a lot, especially if you need a screen replacement. With insurance, you’ll often end up paying only your excess which in comparison is next to nothing. 

• Cover for theft or loss

 With phone insurance, you can have a dedicated policy that covers you in cases that might not be included in home insurance.

• Peace of mind

 Phone prices have skyrocketed recently, and you’ve probably paid a premium if you have the latest iPhone 17 or similar. With insurance, at least you don’t have to constantly worry about losing or damaging it. 

• Quick replacements

 One of the best things about phone insurance is you’ll usually get replacements in a few days, rather than have to spend anxious hours trying to locate part suppliers or finding a spare phone to use in the meantime.

Credits: Metro by T-Mobile

Cons

• Monthly costs add up

While phone insurance can seem cheap at outset, over time, it could easily exceed the actual cost of your phone. 

• Excess fees

As with all insurance policies, you will still need to pay an excess every time you make a claim. While this might not seem like a lot, if you’re a clumsy person a few claims per year will add up quickly.

• Policy restrictions

 Depending on who you go with, you might not be covered for certain types of damage or loss. So, in the end, you could end up paying a lot more as it would be an addition to your monthly costs. 

• Not always necessary

If you’re using a budget or mid-range phone, insurance isn’t necessary and you’d be better off saving the money. 

Should I Get Phone Insurance?

Whether you need phone insurance or not ultimately comes down to how you use your device, how much it’s worth, and how comfortable you are with potential repair or replacement costs.

If you have a very expensive phone and/or tend to lose or drop it frequently, we’d recommend getting it insured. Not only will it give you peace of mind, but it can also mitigate the cost of having to replace your phone outright. 

That said, insurance isn’t always the best option for everyone. If you have a budget phone or rarely lose/drop your phone, you’re better off keeping the money you might spend on insurance, especially since the monthly cost adds up over time.

In the end, if you do decide to take out a policy, make sure you read between the lines to see what’s actually covered. Even though on the surface, they might seem more or less the same, phone insurance isn’t a one-size-fits-all-option. You need to weigh up the cost versus the risks. We’ve covered all the information you need in this blog so you can make an informed decision.