What is iPhone insurance?
iPhone insurance is mobile phone insurance designed specifically for iPhones and iPhone users. It offers the same kind of coverage as standard mobile phone insurance, but also includes additional cover related specifically to Apple products and services.
For those using Android rather than Apple, you can also get similar coverage designed especially for Android phones and devices.
Do you need iPhone insurance?
Smartphones in general can be expensive, yet at the same time fragile and easy to break – this is no different for iPhones. If you think you’re someone who’s likely to lose or damage their iPhone, then iPhone insurance might be a good idea.
However, you don’t want to over-insure yourself. Check whether you’re getting mobile phone insurance as part of your home contents insurance or as an additional feature of a bank account. If you’re still within your warranty period this may be enough to cover you for damage.
iPhone insurance vs AppleCare+
The warranty on an iPhone, whether purchased through Apple or another retailer, is known as AppleCare. It comes automatically with every iPhone, and covers you for any defects for a year as well as phone support for 90 days.
However, Apple also offer AppleCare+ and AppleCare+ with theft and loss for more comprehensive cover for your iPhone:
- AppleCare+ extends the warranty for a further year, and you’ll also get phone support for both years included. AppleCare+ also includes cover for two incidents of accidental damage, with a £25 excess fee for broken screens and £79 for any other kind of damage.
- AppleCare+ with theft and loss includes everything in AppleCare+ as well as cover for if your phone is lost or stolen.
AppleCare+ also offers 24/7 priority access to technical support, hardware cover for your handset, battery, and accessories including the earphones that came with the phone, and software troubleshooting.
However, AppleCare+ can be expensive, so it can depend on personal circumstance which would be better for you. But repairs to iPhones can be hugely expensive so you might feel safer with some form of iPhone insurance.
For example, a screen repair and replacement on an iPhone X costs an eye-watering £282.44. Even a battery replacement can burn a hole in your wallet. A battery for4 an iPhone XS cost £65.
What does iPhone insurance cover?
iPhone insurance can cover you against the same things as a standard mobile phone insurance policy, such as:
- Loss: if you lose your iPhone somewhere
- Theft: if your iPhone is stolen
- Accidental damage: if it’s damaged in an accident
- Malicious damage: if someone intentionally damages it
- Liquid damage: if you or someone else spills a liquid over it
- Screen cover: if the screen cracks
- Mechanical breakdown: if there’s a mechanical or electrical fault outside of the warranty period
- Accessories: if you have a hands a hands free kit or case that also get lost, damaged, or stolen
- Overseas: if you have to claim for something that happens overseas
- Family cover: if people in your family have iPhones you want covered
- E-Wallet: if someone who’s stolen your phone uses your E-Wallet feature, such as Apple Pay
- Unauthorised calls, messages, and downloads: if someone who’s stolen your phone makes calls, sends messages, or downloads anything
If your iPhone is broken beyond repair, then your insurer should send you a replacement – however it may be a refurbished model instead of brand new.
And what if you lost your iPhone? Or it was stolen? More than four out of five people who insure their iPhone take out cover for theft, while more than three in four people added cover for losing their iPhone.
Other Apple devices
An extra benefit of getting iPhone insurance is that it could also offer coverage for your other Apple devices, including iPads, iPods, Macs, and Apple Watches. This isn’t guaranteed, so you should always check your policy documents to be sure.
If you own more than one iPhone, or there is more than one in your household, you might want to check if your insurer offers multi-device policies.
This could help you save money on your insurance premiums, as often a multi-device deal is cheaper than taking out a single policy for each device – but not always. Read policy documents and compare your options before taking out a deal.
Common exclusions with iPhone insurance
Like any other kind of insurance, iPhone cover can come with some exclusions depending on the provider. Reasons your insurer may not pay out include:
- Your iPhone was purchased outside of the UK
- You bought the iPhone second-hand
- The iPhone is older than a certain number of months, anywhere from three months and upwards
- There isn’t an active SIM card in your iPhone
- The iPhone is used for work
- There has already been damage done to the iPhone
- The cost of your claim exceeds the level of cover you chose
- You are claiming immediately after taking out the policy
How much does iPhone insurance cost?
The price you’ll pay for iPhone insurance can depend on:
Your make and model
Newer phones are likely to be more expensive to insure, so if you’ve got an iPhone X or XS you may end up paying a little more for cover than someone with an iPhone 7 or 8.
The average price of insurance for an iPhone XS, according to MoneySuperMarket figures, was £107.27, but an iPhone 8 only averaged £93.48.
The level of cover you take out will generally also affect the price of your iPhone insurance policy, however not always. While theft and loss cover both lead to an increase in the premium price, by £6 and £7 respectively, accidental damage didn’t, according to MoneySuperMarket data collected in October 2018.
This may possibly be due to the fact that 97% of people who took out iPhone insurance added accidental damage as a policy, resulting in it not being a factor in the price anymore.
How often you pay
With some but not all insurers, paying monthly could end up costing more than one annual payment. But, strangely the reverse could be true for other providers – you should check beforehand to be sure you’re getting the better deal.
More than 75% of iPhone insurance buyers pay monthly, according to data collected by MoneySuperMarket.
As with most types of insurance, if you want to make a claim it’s likely you’ll have to make an excess payment before your insurer will cover the rest of the cost. Some insurers offer a compulsory excess fee and a voluntary excess fee. The more you opt to pay, the cheaper your premiums are likely to be.
It may also be worth considering whether your claim is worth the excess payment. In some cases you might be better off paying for the damage yourself and preserving your no claims bonus – which could lead to savings on premiums in the future.
How does the age of your handset affect the cost of iPhone insurance?
While you might think that the older your iPhone, the more it would cost to insure, the price increase may not be as much as you think.
According to MoneySuperMarket data collected in October 2018, the average cost of iPhone insurance for models aged 0-3 months was £101.40, while for phones aged 2-3 years it was £103.12.
It’s likely to depend on the insurer, but it might mean that iPhone insurance for older handsets and hand-me-downs can still be a realistic option.
Compare iPhone insurance
The best way to find a better deal on your phone insurance is to compare your options on a price-comparison website like MoneySuperMarket.
All you need to do is give a few details about your phone, such as the make, model, and age, then you’ll be able to browse through a list of quotes tailored to your needs.
You can compare them by price, coverage, and other factors such as excess fees, and once you’ve found the right quote just click through to the provider to finalise the deal.
You should remember that the cheapest policy isn’t always the best – you’d be better off going for a balance between the level of cover provided and the price you’ll pay.
This way you’ll be able to get the right policy for you, with good value for money without being over- or under-insured – then you can use your phone with peace of mind that you’ll be covered if something happens.