Mobile phone insurance

A practical guide to cover that fits everyday life

Mobile phone insurance is a simple idea: you pay a monthly or annual premium so your phone can be repaired or replaced if something goes wrong. For many people in the UK, that protection matters because phones are expensive to replace and central to work, study, travel, and family life. With more than 88 million active mobile subscriptions in the UK and smartphone ownership strong even among younger users, the risk of loss, damage, or theft affects most households.

Prices of smartphones and wearables continue to rise, which partly explains why UK gadget insurance policies reached record levels in 2024. At the same time, phone thefts in England and Wales rose sharply, increasing the financial risk of going without cover. Yet insurance is not always offered at the point of sale, especially for refurbished devices, and attachment rates have fallen. That means many buyers miss the chance to review protection when it would be most convenient.

This guide walks through what phone insurance usually covers, how claims work, and how to compare options confidently. We will also highlight when insurance may not be necessary and the checks to make before you buy. The aim is to help you avoid surprises, keep costs proportionate to the value of your device, and understand the small print that matters in real life.

Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are.

If you are weighing up cover for a new, nearly new, or refurbished handset, the information below will help you decide in clear, plain English.

What is covered - and how claims typically work

Most standalone mobile phone insurance policies focus on accidental damage, liquid damage, and theft. Some include loss as standard, others sell it as an optional add-on. A typical policy aims to repair first. If a repair is not economical, a replacement is provided, often a refurbished model of similar age and specification. That is normal and helps keep premiums stable.

Common inclusions include cracked screens, damage from drops or spills, and faults after the manufacturer warranty has expired if they are not due to wear and tear. Accessories like chargers or cases may be covered up to a small limit when damaged at the same time as the phone. Theft is usually covered if there are signs of forced entry or reasonable care was taken. Unauthorised calls or data use after theft may be covered up to a limit if you report the incident promptly to your network.

Equally important are the limits. Cosmetic scratches that do not affect function, neglect, or leaving a phone unattended in an insecure place may not be covered. Loss is often excluded unless you buy it specifically. Claims may be declined if the phone is rooted or jailbroken, bought outside the UK without valid proof of purchase, or previously recorded as lost or stolen. You will usually pay an excess on each successful claim, which can be higher for theft or high-end devices.

In practice, claims involve providing proof of purchase, your IMEI, evidence of the incident, and in theft cases a crime reference number. Insurers aim to resolve repairs quickly and will guide you to approved repairers. Transparent documentation and quick reporting make the process smoother.

Who is likely to benefit

This type of cover is helpful for people who would struggle to pay for an unexpected replacement or repair, particularly where devices are new or high value. It can also suit families with children who carry phones to school, students commuting with devices, and people who travel frequently or work on the move. With thefts rising and usage high across the UK, protection can reduce financial stress if the worst happens.

It may be less necessary if your handset is older, low value, or already covered by a packaged bank account, premium credit card, or a home insurance add-on with realistic limits and convenient excesses. If you can comfortably self-insure - setting aside money for repairs or replacement - you might not need a standalone policy. The key is to weigh likely risks against the true cost of cover over time.

Cover choices at a glance

1. Basic

   • Usually covers accidental damage and screen repairs only.
   • No theft or loss. Lower limits and higher excesses are common.
   • Best for older or mid-range phones where replacement costs are modest.

2. Standard

   • Accidental and liquid damage plus theft cover, subject to care requirements.
   • May include limited worldwide use and accessory cover.
   • Balanced option for most everyday users who want theft protection.

3. Premium

   • Adds loss cover, faster claims handling, and higher single-item limits.
   • Often includes worldwide cover and express repairs with approved partners.
   • Suits high-end devices or people who travel regularly.

4. Optional add-ons

   • Loss cover if not included, enhanced accessory limits, eSIM support, and unauthorised usage protection.
   • Multi-gadget or family bundles can lower average cost per device.
   • Digital security or cyber features may cover malware or online fraud related to the device.

Tip: Match the level of cover to the replacement cost of your phone and the way you use it. Paying for features you do not need can erode value.

Cost and what shapes your premium

Prices vary by insurer and device. With rising handset prices and falling claims frequency in the broader gadget segment, many providers price for sustainability rather than deep discounts. Avoid over-insuring older devices where the premium could approach the phone’s current value.

Can you apply - and what insurers check

Most policies are available to UK residents with phones bought new or refurbished from reputable sellers and accompanied by valid proof of purchase. Some insurers set age limits for devices, such as a maximum of 36 months old at the start date, and may require the phone to be in good working order with no existing damage.

You will often be asked to confirm the IMEI, enable device security features, and keep software up to date. In theft claims, a timely report to your network and the police is usually required. Applications can be declined if the device was previously reported lost or stolen, if there is evidence of misuse, or if you cannot provide documentation. Where loss cover is offered, stricter conditions around reasonable care may apply. Read these carefully so you know what is expected of you.

From quote to claim in a few steps

1. Get a quick quote using your phone’s make, model, and age.
2. Choose a cover level that matches device value and risk.
3. Review exclusions, excesses, and claim limits line by line.
4. Enter IMEI and proof of purchase, then start the policy.
5. Secure your phone with passcode or biometrics immediately.
6. If something happens, report to your network without delay.
7. Submit a claim with evidence and follow repair instructions.
8. Track your repair or replacement through the insurer’s portal.

The upsides and trade-offs

Coverage works best when it matches how you actually use your phone.

Key checks before pressing buy

Before you purchase, compare excesses against the likely repair cost, and make sure the single-claim and annual limits comfortably cover your device’s value. Confirm whether loss is included, how theft is defined, and whether unattended or in-vehicle theft is covered. Note any waiting period before you can claim, especially for loss or theft. Review worldwide cover terms, any cap on unauthorised use, and whether accessories or eSIM fees are included. Finally, check renewal pricing and how claims might affect next year’s premium so you are not surprised later. Keep your proof of purchase and IMEI accessible.

Alternatives and related options

1. Packaged bank account cover - may include multi-gadget protection, but check excesses and claim limits carefully.
2. Home contents insurance add-on - can be cost-effective, though excesses and claim handling time may be higher.
3. Manufacturer extended warranty - useful for mechanical faults, usually excludes theft and loss.
4. Self-insuring - set aside money monthly to cover future repairs or replacement if you prefer flexibility.

Frequently asked questions

Q: Is phone insurance worth it for refurbished devices? A: It can be, but compare premium to the current value. Many buyers of refurbished phones are not offered cover and may miss protection. Choose realistic limits and consider loss only if it suits your usage.

Q: Will I get a brand new replacement? A: Not always. Many policies provide a refurbished replacement of equivalent specification when repair is not economical. This helps keep prices stable. Check the policy wording to understand what is supplied.

Q: Do I need loss cover as well as theft? A: Only if it reflects your risk. Loss cover costs more and has stricter care requirements. If you rarely misplace items, theft-only cover could be sufficient. Read the definitions carefully before choosing.

Q: Are children’s phones covered? A: Many policies allow cover for family devices and younger users, sometimes through multi-gadget options. You will still need proof of purchase, and care requirements apply just as they do for adults.

Q: How quickly are claims settled? A: Timelines vary. Digital platforms have improved speed, and simple repairs can be turned around quickly through approved partners. Complex theft or loss claims may take longer due to verification checks.

Q: What if I already have cover through my bank? A: Check for duplicate cover. Compare excesses, claim limits, worldwide use, and claim handling speed. If the packaged account terms are suitable, a separate policy may not be necessary.

What you can do now

Take a moment to note your phone’s make, model, IMEI, and value. Compare basic, standard, and premium options side by side, focusing on excess, theft and loss definitions, and claim limits. When you are ready, choose the level that matches your actual risk and budget. You stay in control at every step.

Important information

This guide provides general information, not personal financial advice. Policy terms and prices vary by insurer. Always read the full policy wording, including exclusions and excesses, and keep copies of all documents for your records.