It has happened to us one time or the other: going through that creepy feeling when you realise your phone is missing. For some, a quick call from someone else’s phone is all it takes to make the phone appear. Thousands of others every year are not so lucky. Then again, they can still be lucky — if they have insurance.
Do You Need Insurance?
Losing a phone, whether it’s stolen or lost or damaged, can sometimes cost hundreds of dollars because mobile phones are subsidized on postpaid contracts. So do you need to take insurance? Most mobile phone insurance is not cheap. Moreover, the price of most phones declines rapidly over the months, so it’s cheaper to buy a new phone rather than go through insurance.
If you are prone to losing your phone or dropping it on the floor, you will benefit from insurance. On the other hand, if you have never lost your phone, it may be unnecessary. You could have reasonable protection with some simple precautions, such as using a security code.
Features and Levels of Cover
Now let’s say you still prefer a limited amount of protection in the event of theft or loss, however unlikely that may be. What features and levels of cover do you want from a handset insurance policy?
Replacement phone: Most insurance policies reserve the right to send you a second-hand phone as a replacement, as long as it is of equivalent specification. This can make the cost of cover cheaper. The more expensive policies usually provide you with a brand new phone.
Accidental damage or loss: Accidental damage includes damage by fire or liquid. It may even cover damage due to dropping. The warranties offered by handset manufacturers do not cover liquid or fire damage, so it is important to include this level of cover in your insurance policy. Most people assume that if they lose a phone, it won’t be replaced by their carrier. Carriers or insurance companies normally expect you to take a reasonable amount of care to prevent loss or damage. So if you lose your phone by keeping it unattended in a public place or in an unlocked vehicle, your claim may be denied. Most people therefore report that the phone is stolen— not lost. Notice that there is no cover if you lend or give your phone to a friend or relative. There is also no cover for damage by normal wear and tear.
Fraudulent cover or unauthorized phone calls: If your phone is lost or stolen, you should report it immediately to your carrier and suspend the SIM, even before going to the police. The reporting time is crucial because you are still liable for calls from the actual time of theft or loss up to the reporting time. Most people don’t make any international calls with their mobile phones. So it’s good practice to bar international calls when you sign up on a postpaid contract. This also helps reduce your bill for fraudulent calls should your phone be stolen, since international calls are expensive and offer little help in tracking crime.
Accessories: Almost all carriers do not provide insurance for accessories, such as batteries and earplugs.
For further help, you can call on O2 Contact Number and get in touch with its dedicated team.