How to Get the Best Deal on Your Gadget Insurance

Of course, it is obvious is not it, to get the best deal on any purchase you need to shop around first and compare prices and products before you buy. However, this first rule is often forgotten when it comes to insuring our mobile phone and other gadgets.

In the rush to walk out of the store with our new toy, it is all too easy to opt for the easy option of selecting the in house cover provided by the store/vendor. Whilst this is obviously the most straightforward method and usually comes with instant cover, you may not realise that the cover you have selected is either very limited compared to other products on the market and/or does not provide good value for money when compared with similar cover available.

As well as the mistake of automatically buying the in house cover when you purchase the item, the other common mistake is to assume your household content insurance will cover all your gadgets. Though this can be true for some, there are instances where your content insurance will not adequately cover the item. An example of this might be a sat nav, which, when taken out of the home is not covered by content insurance and in most cases will not be covered by car insurance either. Due to the nature of these gadgets, their portability increases the likelihood they might be damaged or lost whilst outside of the home, so make sure the protection you might think you have adequately covers the items both inside and outside of the home.

Another consideration is that with the multitude of gadgets most of us have these days, opting for singular item insurance is the most costly ways of securing your items. If you have several gadgets that you want to insure, consider bundling them under one broad gadget insurance policy. These products usually not only offer the best value in terms of cost of cover, but usually provide a more comprehensive level of cover. It is also much more straightforward to manage one umbrella policy than it is several insurance from £1.49 per month.

So what type of items should you consider and are they eligible under gadget insurance cover? Well, all these gadgets, smartphones, tablets, laptops, games consoles, eBook readers, digital cameras, sat navs and MP3’s can be covered by gadget insurance.

So having decided which of your precious gadgets you want to insure, the next stage is to shop around for the policy that suits your needs best at the most affordable price.

There are three key considerations to ensure the policy you are purchasing is sufficiently comprehensive:

Does the cover include ALL accidental damage? It is noticeable that some policies, particularly those sold in phone shops exclude some accidental damage, most importantly, water damage. Water damage is recognised as being one of the most common accidental damage claims and therefore, should probably be considered a key requirement of a good comprehensive insurance policy.

Does the cover include ALL incidents of theft or loss? Check the fine print and make sure that you are getting what you are paying for, so that you get the best insurance policy to cover your gadget. Some policies do not adequately cover your gadgets in the event they are stolen. Look for adequate cover in relation to theft or loss. As well as covering the gadget itself in the event of theft, does the policy also cover unauthorised use. Before you notice the theft and are able to contact cell phone providers to cancel your account/prevent usage, there are many examples of stolen phones being used to run up huge bills, sometimes running into hundreds of dollars. Before you purchase, check the policy includes cover for any unauthorised use on stolen items.

 

[Dhruv Bindhani]

This document provides crucial advice on how to secure the best and most comprehensive insurance for mobile phones and other gadgets, emphasizing the common pitfalls consumers face and offering strategies for making informed choices.

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Smart Strategies for Insuring Your Gadgets: Avoiding Common Pitfalls​

The article highlights that while "shopping around" is a universally accepted principle for getting the best deal, it's often overlooked when it comes to insuring valuable gadgets like mobile phones. This oversight can lead to inadequate coverage and poor value for money.

Common Mistakes to Avoid:​

1. Opting for In-House Cover: Many consumers, in their eagerness to use a new gadget, mistakenly choose the insurance offered directly by the store or vendor. While convenient, this "easy option" frequently provides limited coverage or is not cost-effective compared to other market offerings.
2. Assuming Household Contents Insurance Suffices: It's a common misconception that household contents insurance will automatically cover all gadgets. While it may offer some protection, it often falls short, especially for items taken outside the home (e.g., a sat nav, which is typically not covered by contents or even car insurance when outside the home). Given the portability of gadgets, they are highly susceptible to damage or loss outside the home, necessitating specific coverage for such scenarios.
3. Insuring Singular Items: With the increasing number of gadgets most people own, insuring each item individually is often the most expensive approach.

Recommendations for Smart Gadget Insurance:​

1. Bundle Policies for Multiple Gadgets: For those with several gadgets, opting for a single, broad "gadget insurance policy" is recommended. These bundled policies usually offer better value and more comprehensive coverage, besides being simpler to manage than multiple individual policies. The article even mentions the possibility of finding insurance from as low as "£1.49 per month" for bundled policies.
2. Identify Eligible Gadgets: The article lists a wide range of gadgets typically covered by such policies: smartphones, tablets, laptops, games consoles, eBook readers, digital cameras, sat navs, and MP3 players.
3. Shop Around and Compare Policies: Once the decision to insure has been made, the next crucial step is to compare different policies to find one that best suits individual needs at an affordable price.

Key Considerations for Comprehensive Coverage:​

When evaluating potential policies, the article advises focusing on three critical aspects:

1. Accidental Damage (Including Water Damage): It's vital to ensure the policy covers all accidental damage. A significant red flag is the exclusion of water damage, which is noted as one of the "most common accidental damage claims" and thus a "key requirement" for a good comprehensive policy.
2. Theft or Loss (Including Unauthorized Use): The fine print must be checked to confirm adequate coverage for all incidents of theft or loss. Beyond just replacing the stolen gadget, a comprehensive policy should also cover unauthorized use. This is crucial because stolen phones can incur "huge bills" (sometimes hundreds of dollars) before the theft is noticed and the service canceled. Protecting against such unauthorized usage is presented as a vital component of robust gadget insurance.

By following these recommendations, consumers can make an informed decision and secure comprehensive, cost-effective protection for their valuable electronic devices.