Mobile Phone Insurance – Why? - Part 1
Mobile Phone Insurance – Why?
It is important to ascertain why you want insurance. There are 2 principle reasons why you would want to insure your phone …
1. To cover the high cost of replacing your phone
2. To get your phone replaced quickly and easily
1. To cover the high cost of replacing your phone.
Your phone very likely cost far more than you paid for it. Both pay as you go phones and contract phones get heavily subsidised by the network to entice you to use their network and pay them for your calls. BUT when you come to replace your phone the networks will usually NOT discount the phone so you have to pay the full price – often hundreds of pounds.
To find the replacement cost of your phone, the best way to do this is to buy the replacement mobile phone as a pay as you go (which gets slightly discounted by the networks) rather than as a contract mobile phone. Simply search www.google.co.uk for “pay as you go MAKE MODEL” eg “pay as you go nokia n90”
Some insurance companies charge so much per month that it is just not economic sense to pay them, because it will cost you more per year to insure the phone than it costs to replace it. You need to run a simple equation, but this will be different if you are a contract customer rather than a pay as you go mobile phone customer, because contract customers can usually upgrade their phone to a new phone after the 12 month contract period - which means contract customers can get then get a heavily discounted replacement mobile phone.
If you are a contract mobile phone customer, first simply find the replacement mobile phone cost as described above. Take this number and divide by 12 months. If this figure is bigger than the monthly insurance premium then it is a pointer that the insurance is worth while.
For example currently the Nokia N90 on pay as you go is showing as costing £399. £399 divided by 12 months = £33.25 per month. This is a lot more than insurance per month is likely to cost, so the insurance may be a good option.
In this example, the insurer 2U Mobile Phone Insurance would protect this phone under their Executive Policy cover at £7.99
12 months at £7.99 = £95.88. This is considerably less than the £399 replacement cost so the insurance is a good option for this Nokia N90 mobile phone.
If you are already a pay as you go customer, you will not be getting any more discount from the network than the usual pay as you go price (contract customers get much more discount). So your replacement cost would only be as low as the pay as you go cost, no matter when you replace your mobile phone, or how long you wait ...
Continued in the next article ...
It is important to ascertain why you want insurance. There are 2 principle reasons why you would want to insure your phone …
1. To cover the high cost of replacing your phone
2. To get your phone replaced quickly and easily
1. To cover the high cost of replacing your phone.
Your phone very likely cost far more than you paid for it. Both pay as you go phones and contract phones get heavily subsidised by the network to entice you to use their network and pay them for your calls. BUT when you come to replace your phone the networks will usually NOT discount the phone so you have to pay the full price – often hundreds of pounds.
To find the replacement cost of your phone, the best way to do this is to buy the replacement mobile phone as a pay as you go (which gets slightly discounted by the networks) rather than as a contract mobile phone. Simply search www.google.co.uk for “pay as you go MAKE MODEL” eg “pay as you go nokia n90”
Some insurance companies charge so much per month that it is just not economic sense to pay them, because it will cost you more per year to insure the phone than it costs to replace it. You need to run a simple equation, but this will be different if you are a contract customer rather than a pay as you go mobile phone customer, because contract customers can usually upgrade their phone to a new phone after the 12 month contract period - which means contract customers can get then get a heavily discounted replacement mobile phone.
If you are a contract mobile phone customer, first simply find the replacement mobile phone cost as described above. Take this number and divide by 12 months. If this figure is bigger than the monthly insurance premium then it is a pointer that the insurance is worth while.
For example currently the Nokia N90 on pay as you go is showing as costing £399. £399 divided by 12 months = £33.25 per month. This is a lot more than insurance per month is likely to cost, so the insurance may be a good option.
In this example, the insurer 2U Mobile Phone Insurance would protect this phone under their Executive Policy cover at £7.99
12 months at £7.99 = £95.88. This is considerably less than the £399 replacement cost so the insurance is a good option for this Nokia N90 mobile phone.
If you are already a pay as you go customer, you will not be getting any more discount from the network than the usual pay as you go price (contract customers get much more discount). So your replacement cost would only be as low as the pay as you go cost, no matter when you replace your mobile phone, or how long you wait ...
Continued in the next article ...
posted by Duncan at
4:43 AM
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