Don’t get ripped off on phone insurance

Brits are not getting a fair deal on their mobile phone insurance, states the British Insurance Brokers’ Association (BIBA).

With as many as 700,000 phones stolen every year cover of some sort is essential but specialist insurance may not be the best option.

BIBA warns that insurance policies sold by mobile phone providers can be more expensive than the costs of a replacement handset.

Policies range from £7.99 to £9.99 a month, which at between £95,88 and £119.88 a year is more than a standard replacement handset, which costs only £40.

BIBA spokesman Peter Staddon explained: "The main reason for insuring a mobile phone is to cover replacement costs if the phone is lost or stolen and the potential cost of calls on the phone when it is lost or stolen.

He also drew attention to the conditions in place which means that a policy can be easily invalidated. For example some policies stipulate the loss must be reported within 24 hours or the phone will not be replaced free-of charge.