How does gadget insurance work?

• Loss
• Theft
• Accidental damage (including cracked screens and liquid damage)
• Mechanical failure/breakdown (if your device is out of warranty)
  
  

• Cosmetic damage
• Damage that’s already covered by the manufacturer’s warranty
• Loss or damage where you didn’t take proper care of your device
• The contents of your device (such as photos or software)
  
  

In some cases, your gadgets may already be covered by a separate insurance policy. Your home contents insurance may offer some form of protection, for example, though if you’ve got several high-value devices it may not be sufficient, and you may not be covered against accidental damage or damage that was caused outside the home. The excess can often be high, too, which may mean it isn’t worth claiming.

Alternatively, some current accounts come with a package of insurances, of which gadget or mobile phone insurance is often one. However, again you need to make sure that the level of cover is suitable and that the excess isn’t too high, and you’ll also want to check the claims rules – some will only allow you to make one claim in a single year, which if you’re accident prone, may not be sufficient. 

Yet it’s still worth checking to see if you’re covered elsewhere; just take a close look at the small print to ensure the cover will be sufficient, and if not, it may be worth looking for a separate policy.

This will depend on a number of different things, including the value of the gadget you’re looking to insure, the level of cover you want, the amount of excess you’ll pay in the event of a claim and the provider you’re considering. It will also vary depending on how many gadgets you’re looking to insure – while some consumers only want to insure a single device (typically a smartphone), others insure two or more devices, and there may be discounts available for those who insure several gadgets under a single policy.

As a ballpark figure, gadget insurance can cost anywhere from £1.50 per month to £15+, though this will of course depend on the device you’re insuring. See if your provider will offer a discount for paying in a lump sum rather than monthly – some will offer an annual discount – and always shop around to make sure you’re getting the best deal. 

• Level of cover. Some insurers will offer a basic level of cover and will charge for optional extras, whereas others will offer a more comprehensive package as standard, but usually at a higher price. Always look closely at the details of each policy to make sure it offers the ideal combination of a decent level of cover at a reasonable price.
• Excess. All policies will come with some form of excess, but make sure it isn’t too high. If it is, you could end up spending a lot anyway, which could make the policy far less suitable.
• Claims process. If you lose a gadget that you’ve come to rely on, you don’t want a long claims process – you want to get your hands on a new (or repaired) device as quickly as possible. That’s why you should always check what your potential insurer’s claims policy entails, e.g., does it offer a 24hr claims line, how long does the approval process take, how quickly will it send a new device, etc.