Cellphone Insurance

Insurance providers are not privy to the fact that the world is kept on our phones. They recognise how important these portable devices are to us and with this in mind - insurance companies, banks, and cellphone outlets offer insurance policies that will pay out sum so that we can replace our cellphones if they are lost, damaged, or stolen.

If worse comes to worst, a cellphone insurer will either replace the phone in question, pay to have it fixed or they will pay out a cash amount that’s equivalent to the device’s replacement value. This way, you will never have to sit without the cellphone that you have come to depend upon for too long - the world can keep turning!

Many assume that their phones are automatically insured because they have a cellphone contract - but this is not always the case. Some may also think that because they have household insurance, their phones will also simply fall under this cover. Unless you have requested cover for a specified cellphone in your cell contract or your household insurance (or “contents” insurance), then the chances are that your mobile device isn’t completely insured as you would like to hope.

Like with most insurance policies, cellphone insurance requires that you pay a monthly premium to your insurance provider. This cover will guarantee that your cellphone is fixed or replaced in the event of:

• Theft
• A smash and grab
• Accidental loss
• Accidental damage
• Water damage

Most insurance plans will cover both damages to the hardware of the phone as well as damage to the operating system (software).

If you depend on your cellphone for everything you do and simply couldn’t function without it - then yes, you need cellphone insurance. These days, a reliable smartphone doesn’t come cheap. Unless you have access to a good amount of saved up cash, then insuring your phone is the easiest and most convenient solution towards ensuring that your device will be quickly replaced with the same make and model that you are accustomed to.

From giving you peace of mind to ensuring that you will never have to fork out the full retail cost for a replacement phone if the unexpected occurs, cellphone insurance is just another way to make life a little easier. Some policies will even cover your cellphone gadgets and accessories so that if anything gets damaged, lost or stolen along the way, then you can quickly sort your device out so that it functions as usual.

Cellphone insurance in South Africa can cost as little as R20 per month. The rate you will pay per month all depends on the retail value of your phone (or how much you would like to insure it for) as well as the level of cover i.e. what additional benefits are included in your plan?

If you only want accidental damage cover, for example, then you will pay considerably less than if you want cover for both damage and theft.

Some providers may also take your:

• Age (are you older and more responsible);
• Your address (do you live in a high crime rate area) and;
• Your claims history (how many times have you submitted a claim for the damage or loss of valuables) into account when calculating a fair premium in accordance with the level of cover you will need.

If you think about it, paying a small monthly fee over to your insurer is much easier on the pocket than having to pay a large and unforeseen lump sum just to replace your phone.

Back in the day, when cellphones weren’t such a huge commodity, a mobile device could only be insured if you had a household insurance policy with one of the bigger insurance companies. Today, anyone can request cover for a single device. You can now also apply for mobile insurance at a bank, a cellphone service provider, and even a chain store (over and above an established insurance company).

But no matter where you get your insurance from, the claims procedure generally remains the same. In the event of your phone being accidentally damaged, lost or stolen, you can:

• Contact your insurer to notify them and request claims forms
• Submit your claim forms together with any supporting documents*
• Depending on the type of damage or the reason for loss/theft, your provider will either arrange for your phone to be replaced or they will pay out a sum to cover the device's replacement value (as per your initial specifications)
• A claim is generally processed within 48 hours, if not sooner

Remember that when you make a claim, your insurer will ask for the receipt to verify the amount you paid for the phone and they will also require the serial number. This means that you should keep all of your documentation in a safe, nearby, and accessible location.

Applying for cellphone insurance is easy and with so many competing companies offering this service, sourcing a cheap quote that will fit your budget is possible. Because premiums are based on the value of your device, they can start from as little R20 per month for basic cover.

Before signing up for cellphone insurance, we urge you to shop around and compare the plans and rates offered by different providers. This way you can choose a plan that best suits your lifestyle and your budget.

Instead of emailing or phoning the numerous providers for quotes or paying a broker to do the “shopping” for you, we encourage you to use the Money Expert comparison tool to request quotes quickly and easily.