In an age of gadgets, one of the most prominent accessories of our society is the mobile phone. And with it's ascendancy has risen the perceived necessity of mobile phone insurance. However, customers should exercise more consideration as to how necessary such coverage really is.
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
Such customers would therefore question the wisdom of taking out a policy in the first place. This is understandable, given that they rarely have any difficulties with their handsets anyway. There is also another element that people consider with respect to insurance, though: the type of plan you are on with your network.
A phone owner who is under contract does not have the same freedom of manoeuvre that a PAYG (Pay As You Go) customer has. The PAYG phone owner who loses their handset or has it pilfered from them has lost both their handset and the cash they had topped-up for calls. A contracted phone owner is in a worse predicament as they not only no longer have their handset, but also still have to continue paying the contract for their lost item.
If you are careful with maintaining your handset, or are a PAYG customer, taking out a policy is likely unnecessary. If, however, you are a contract customer, and do have a prior history of bad luck with lost, broken or stolen handsets, getting cover would probably be a smart move. An insurance policy will cost less in the long run than a series of new phones would. A PAYG customer can simply look for a cheaper deal and are under no commitments to any service provider, but a contracted customer doesn't have that luxury.
However, the sort of coverage you require may already be within your reach. If your have home insurance, you may be able to get coverage by exercising an "all risks" clause on your policy that will cover items of value that aren't always within the insured premises. You will have to check if such coverage would entitle you to a replacement handset, however.
So if you do need mobile phone insurance, you would be well advised to accept a policy which primarily covers handsets. If you don't need such cover, of course, then there is little need to spend cash on such cover. Each customer's circumstances dictate which decision is best for them.
After all, unlike other policies, coverage for handsets isn't demographically determined. All policyholders are judged on an even playing field. The consequence of this is that the insurers who suffer no losses on their own policies are paying the costs of the ones who do claim on losses or damages.
Such customers would therefore question the wisdom of taking out a policy in the first place. This is understandable, given that they rarely have any difficulties with their handsets anyway. There is also another element that people consider with respect to insurance, though: the type of plan you are on with your network.
A phone owner who is under contract does not have the same freedom of manoeuvre that a PAYG (Pay As You Go) customer has. The PAYG phone owner who loses their handset or has it pilfered from them has lost both their handset and the cash they had topped-up for calls. A contracted phone owner is in a worse predicament as they not only no longer have their handset, but also still have to continue paying the contract for their lost item.
If you are careful with maintaining your handset, or are a PAYG customer, taking out a policy is likely unnecessary. If, however, you are a contract customer, and do have a prior history of bad luck with lost, broken or stolen handsets, getting cover would probably be a smart move. An insurance policy will cost less in the long run than a series of new phones would. A PAYG customer can simply look for a cheaper deal and are under no commitments to any service provider, but a contracted customer doesn't have that luxury.
However, the sort of coverage you require may already be within your reach. If your have home insurance, you may be able to get coverage by exercising an "all risks" clause on your policy that will cover items of value that aren't always within the insured premises. You will have to check if such coverage would entitle you to a replacement handset, however.
So if you do need mobile phone insurance, you would be well advised to accept a policy which primarily covers handsets. If you don't need such cover, of course, then there is little need to spend cash on such cover. Each customer's circumstances dictate which decision is best for them.
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