Is mobile phone insurance worthwhile?

Ask the experts whether mobile phone insurance is worthwhile and opinion seems to be fairly divided. The closest to a consensus is that it all depends - on a number of factors, such as the following:

• Premiums - the cost of mobile phone insurance is typically less than ten pounds a month. If you are looking for simple theft or accidental damage cover, therefore, you should expect to pay around this figure;
• Phone - the replacement value of your phone will also determine whether insurance is worthwhile. If it is a cheap pay-as-you-go model, the cost of premiums costing around £100 a year may soon outweigh the cost of simply replacing a stolen or damaged handset. If you have a contract, it is also necessary to factor in the cost of continuing the time remaining on the contract and replacing a phone which might not have been free when signing up;
• Other cover - check whether any cover or sufficient cover is included in your home contents insurance or even whether it is included in the type of current account on which you are paying a fee for "extra" services;
• Small print - read any phone insurance policy carefully, since the detail in many will differ significantly with respect to loss (which is generally not covered) or theft (which usually is covered), accidental damage and "network abuse" (the unauthorised use of your phone).

Thus, there is no simple answer to the question of whether mobile phone insurance is worthwhile, but a consideration of the issues above should help you reach a decision based on your particular circumstances and mobile phone use.