Gadget and mobile phone insurance is one of the most heavily marketed add-ons in personal finance, sold at the till, bundled into bank accounts, and pushed hard at the point you buy a new phone. Whether it's worth having depends heavily on what cover you already have without realising it.
What this cover typically includes
Standalone gadget insurance usually covers accidental damage, theft, and sometimes loss, for one or more devices — phones, tablets, laptops — for a monthly premium. Policies vary on whether they cover the device anywhere in the world or only in specific circumstances, whether there's an excess to pay per claim, and whether the payout is a repair, a replacement, or cash towards a new device.
Cover you might already have
- Home contents insurance — many policies include "personal possessions" or "away from home" cover that extends to gadgets carried outside the house, sometimes up to a set value per item.
- Packaged bank accounts — many fee-charging current accounts include mobile phone insurance as one of their perks, alongside things like travel insurance or breakdown cover.
- Manufacturer or retailer warranties — these typically cover faults, not accidental damage or theft, but are easily confused with insurance.
- Credit card purchase protection — some cards offer limited protection for items bought using the card.
It's common to end up paying for gadget insurance on top of cover you already have through one of the above, without ever making a claim on either.
When standalone cover is worth it
| Worth considering when | Probably not worth it when |
|---|---|
| You don't have contents insurance or a packaged bank account with phone cover | You already have overlapping cover you're not using |
| Your device is high-value and you're accident-prone or travel a lot | The device is older or lower in value than a year or two's worth of premiums |
| You want a low or no excess and fast replacement | The excess on the policy is close to the cost of a repair anyway |
What to check before buying
- The excess per claim, and how many claims you're allowed to make per year
- Whether accidental damage, theft and loss are all included, or sold as separate options
- Whether the payout is "like for like" replacement or a cheaper alternative model
- Any security requirements (such as needing a passcode enabled) that could invalidate a theft claim if not met
Common misconceptions
- That a manufacturer warranty is the same as insurance — a warranty covers manufacturing faults, not a cracked screen or a stolen phone.
- That gadget insurance is always cheaper than self-insuring — for lower-value or older devices, setting aside the equivalent monthly premium yourself can leave you better off over time.
- That claiming on home contents insurance for a phone is always the best route — a claim can affect your no-claims history and future contents premiums, which standalone gadget cover doesn't touch.
What to do next
Before paying for standalone cover, check your existing home contents policy documents and any packaged bank account terms for gadget cover you might already have. If there's a genuine gap, compare the excess, claim limits and replacement terms across a few providers rather than accepting the first add-on you're offered at checkout.