Why gadget insurance makes sense
With gadgets now becoming an integral part of our everyday lives, it’s no surprise that 35% of Brits already have a standalone gadget insurance policy to protect their portable tech.
But the flipside is that 65% of Brits don’t have dedicated gadget insurance.
When asked about why they didn’t have gadget insurance, many people believed their contents insurance, packaged bank account or travel cover was sufficient. But that may not be the case.
Accidental damage cover isn’t always included with these other policies, so it’s important to check the policy detail to see what protection you’ve got.
And we certainly need protection: just over a quarter of those surveyed (26%) said they’d suffered an incident or accident with their phone over the past year, with 16% saying they’d cracked their phone screen and 8% having damaged their handsets in water.
The number of people having phone accidents jumps to nearly half (46%) for those between 18 and 24, with nearly a third of those (28%) reporting a cracked screen.
Brits also tend to underestimate how much it costs to repair the latest smartphones, as those surveyed believed it would cost around £70 to repair a cracked screen, when in reality it costs more than £100.*
*MoneySuperMarket survey data. Correct as of July 2017
Do you need gadget insurance?
A good place to start is to work out the value of your gadgets and weigh up whether it’s worth taking out dedicated cover.
You might have limited cover through an existing policy, such as contents or travel insurance, but you’ll need to check whether it’s adequate. And don’t forget that you have to pay an excess on these policies if you make a claim - and the excess here can be much higher than on a gadget policy.
Indeed, the relatively high excess on a contents policy, say, might mean it’s not worth making a claim for a lower-cost gadget.
What can gadget insurance cover?
The great thing about gadget insurance is that it can cover almost all gadgets and handheld devices. Here is a list of all the gadgets you could cover today:
- Smartphones
- Laptop
- Digital camera
- Tablet
- Games console
- MP3/MP4 player
- e-reader
- SatNav
- Digital recorder
- Smart watch
Gadget insurance can protect you against theft, loss, accidental damage and, in some cases, mechanical breakdown.
With some policies, you can’t claim until a certain time period has elapsed after buying the cover (such as 14 days). Each policy is different, so check before you buy.
Some standalone gadget insurance policies will offer a like-for-like replacement in 24 hours so, if your business is dependent on your phone or gadget or you really can’t function without it, this might be something to look out for within your cover.
If you belong to a family of tech addicts you can take out a policy that covers all the household’s gadgets under one umbrella policy.
| Most insured | Device |
|---|---|
1 | iPhone XR 64GB |
2 | iPhone 8 64GB |
3 |
|
4 | Samsung S10 128GB |
5 | iPhone XS 64GB |
6 | iPhone XS Max 64GB |
7 | Samsung S10+ 128GB |
8 | Samsung S9 |
9 | iPhone 7 32GB |
10 | iPhone 8 Plus 64GB |
Phone insurance
Most people take their phone with them everywhere, so it’s no surprise that phones are the most commonly insured gadget.
When considering how gadget insurance can protect your phone, there are a number of limitations to consider. For instance, some insurers won’t insure a phone that’s over 6 months old, while others will happily insure phones that are 2 years old. To get mobile gadget insurance you need to have a proof of purchase, but even then, most insurers will not cover a phone bought outside the UK. It’s always important to check the policy documents to make sure you are adequately covered.
(Data provided by protectyourgadget.com correct as of October 2019)
What is gadget insurance?
Gadget insurance covers just about every gadget you can think of. And in a world where we are all pretty obsessed with our phones, tablets and laptops, taking out gadget insurance is definitely worth thinking about.
Policies cover smartphones, laptops, digital cameras, tablets, games consoles, MP3/MP4 players, e-readers, sat-navs, digital recorders, Air Pods, GoPros and smart watches.
How does gadget insurance work?
There are many types of policy to consider. You can protect one particular item like your iPhone or you can get more comprehensive household policies that cover a whole range of devices. There are also policies available that cover all the family’s gadgets in one umbrella policy.
What does gadget insurance cover?
Gadget insurance protects against loss, theft, accidental damage and, sometimes, mechanical breakdown.
There are policies available that will offer like-for-like replacements in 24 hours, which is particularly appealing if your business is dependent on the gadget and you are unable to work without it.
I can’t live without my phone so should I purchase gadget insurance?
Most people who own a phone literally take them everywhere. And if you really worry about losing or breaking your phone, it might be worth taking out gadget insurance.
There are a number of factors to consider when insuring your phone. Some policies won’t cover a phone that is more than six months old whereas others will. You will also need proof of purchase in order to get gadget insurance but you’re unlikely to get cover if it wasn’t bought within the UK.
I bought my gadget second hand. Can I still get cover?
No. Items must have been purchased as new from a manufacturer, network provider or other high street or online store. Refurbished gadgets or those bought from outlet or similar stores are not eligible for cover.
I have contents insurance so do I really need to gadget insurance too?
Read through your policy documents to check exactly what they insure under that particular cover. You might have limited cover so it’s a good idea to work out the value of your gadgets and then ask yourself if it is adequate. Also, they may not cover your phone or gadget away from home or for theft. Consider whether there is a high excess on a contents policy. If so, making a claim of a lower-cost gadget might not be worth it.
My gadget is still under warranty so is there any point getting gadget insurance too?
There could be. A warranty covers mechanical breakdowns but not accidental damage or theft. Most gadget insurance policies would cover these, but always remember to check the policy thoroughly.
I bought gadget insurance and now I need to make a claim. What do I need to do?
If it’s been stolen, you will need to notify the police and get a crime reference number as soon as possible. Then submit your claim at the earliest opportunity by contacting your insurer. Always keep receipts too as you will always need proof of purchase for any successful claim.
Do I need gadget insurance?
It depends on your circumstances: ask yourself if you could afford to replace the gadgets if they are damaged or lost, whether they are still under warranty, have you lost or damaged gadgets before, and are they covered already under another policy like home or contents insurance?
Gadget insurance will certainly give you peace of mind if you are accident-prone or use your gadgets on the move, especially if you can get a policy that costs only a few pounds a month.
How does our site work?
Moneysupermarket have teamed up with protectyourgadget.com who offer an external gadget insurance comparison service. ProtectYourGadget.com is a trading name of Comparison Creator Limited, a company registered in England and Wales (Registration Number 07336373). Comparison Creator Limited is an Appointed Representative of Moneyshake.com Limited which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 522581).