Mobile Insurance: Is it worth it?

marathonic

What do you all think about the insurance option provided by the various networks when purchasing a high-end smartphone? Is it worth it?

Personally, I think:

• On a 12 month contract, it's probably worth declining the insurance. The insurance generally costs €9 per month and has an excess of €35. That's €108 per year - or €143 if you actually make a claim. By declining the insurance, you could either save €108 (if you don't lose the phone) or spend €143 on a replacement (if you do lose the phone). With a 12 month contract, you wouldn't have long before you can get another subsidised phone.
• On an 18 month contract, it'd be difficult. Especially if a smartphone is a must have. You could potentially lose it after a couple of months and would have to go 16+ months with whatever cheap phone you could afford from the PAYG selection
• On a 24 month contract, I couldn't do without the insurance. I wouldn't want to go without a smartphone for up to 2 years

I'm on the market for a smartphone - either the iPhone 4 or Samsung Galaxy S II. The following seem to be my options:

iPhone 4 or Samsung Galaxy S II on Three

18 Months

Cost of Phone after FatCheese.ie Rebate: €138.19
Contract per Month: €40
Insurance per Month: €9
Average cost per Year: €680

24 Months

Cost of Phone: Free
Contract per Month: €40
Insurance per Month: €9
Average cost per Year: €588


iPhone 4 on Meteor

Ignore as it’s €45 per month over 24 months

Samsung Galaxy S II on Meteor

12 Months

Cost of Phone after FatCheese.ie Rebate: €100
Contract per Month: €30
Insurance per Month: €0 (take the risk with a 12 month contract)
Average cost per Year: €460


So with the Three phones, you pay extra for the privilege of being able to update after 18 months but, even comparing with Three’s cheaper 24 month contract, I’d be paying €128 less for Meteor’s 12 month contract. I would be taking the risk with no insurance but would also be able to upgrade to a newer phone after 12 months.

cookie1977

I think mobile insurance is a rip off unless you're incredible clumsy with your device. Stick the amount you'd pay them into a bank account every month and if something does go wrong (which for most is highly unlikely) then use it. If not you can use the money towards your next upgrade.

AntiVirus

Why not just put the phone on your house insurance? It only costs an extra 5 euros for the whole year :-)

cookie1977

Many insurance companies will not insure mobile phones on house insurance and the excess could be prohibitive as well.

marathonic

cookie1977 wrote: »

Many insurance companies will not insure mobile phones on house insurance and the excess could be prohibitive as well.

Just had a look at my insurance company's online quote tool for a €150,000 house with 20% contents cover in Donegal.

It costs an extra €19.57 for me to put the phone on my policy - which has a €250 excess.

Then, if I add a claim for €350 (which I'd have if I claimed for one of these phones), it increases the premium by €124.07 the next year. They look for details of claims over the past 3 years so I'd assume that the premium would increase for years two and three as well.

I also get a €50 discount on my premium if I increase my excess to €500 - which I can do for house insurance but not for phone insurance.

So, as far as I can see, adding a phone to house insurance is very cheap but is only useful when the phone forms part of a larger claim.

AntiVirus

marathonic wrote: »

Just had a look at my insurance company's online quote tool for a €150,000 house with 20% contents cover in Donegal.

It costs an extra €19.57 for me to put the phone on my policy - which has a €250 excess.

Then, if I add a claim for €350 (which I'd have if I claimed for one of these phones), it increases the premium by €124.07 the next year. They look for details of claims over the past 3 years so I'd assume that the premium would increase for years two and three as well.

I also get a €50 discount on my premium if I increase my excess to €500 - which I can do for house insurance but not for phone insurance.

So, as far as I can see, adding a phone to house insurance is very cheap but is only useful when the phone forms part of a larger claim.

What online calculator are you using?

johnny_adidas

if you are an ulster bank customer with a ufirst account (€10 per month subscription), you can get phone insurance for free as one of the perks (ok its not free but when you add it to the 25% off tickets and better rates on loans, mortgages etc it makes sense)

marathonic

AntiVirus wrote: »

What online calculator are you using?

http://www.getcover.ie/

amdaley28

There are a few ways to look at this.
Are you the type of person who's likely to lose your phone ? Out on the town in clubs taxi's etc all the time. Do you have a habit of losing things ?
It might be worth the insurance if on a 12month contract because the cost of replacement would be high. Remember after 12 months your phone is only worth a fraction of the original price & if you continue the insurance you are insuring something which isn't worth the premium you are paying.
Also if say you claim a replacement phone after 12 months what will they give you.Probably the same phone which you had first day which by then will be old technology ?
I think insurance is only of use if you are the type of user whose lifestyle is likely to lead to a claim.Out in pubs.clubs on the town. You know what I mean.Young & free

Mimikyu

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