Mobile Phone Insurance – Is it a good deal?

Mobile Phone Insurance – Is it a good deal?

When talking on the subject of insurance I will probably be the first to say the many forms of insurance are important for some people. Particularly insurance like health insurance, Income protection and Trauma Cover are some I make sure i’m covered with (even on a students budget). But im no Financial Planner so naturally you shouldn’t take out insurance just because I have some.

Shortly im going to be in the Market for a Mobile phone as my current phone (non-Iphone) has decided to stop working again temporarily. So im back to using my 3 year old Iphone that was previously completely submerged in water but somehow still works? Now thats a quality phone! Doubtlessly this faulty phone will mirraculously work again once I take it back to the shop to be repaired. But that is a different matter!

Anyway when I do happen to upgrade to the new Iphone one form of insurance that I will not be taking out is insurance for my mobile phone as I am not entirely convinced its value for money.

Poor value for my Mobile Phone Insurance

Now I have canceled the insurance on my phone plan and allow me to explain why. Eighteen months ago when I haphazardly submerged my old Iphone in a pool of water I naturally was going to claim on my insurance. After all I had been paying the $8 a month  under the impression it would provide me with a new phone. Unfortunately for me the excess on the insurance was along the line of $350. Ouch…$350!

Since I was out of contract for that phone I opted to just sign up to a new contract  rather than make a claim on the insurance at a cost greater than what I could buy a equivalent second hand phone for on Ebay. Naturally this time without the $8 a month insurance!

COST/BENEFIT of the Mobile Insurance I had

So lets just look at this from another perspective.

$8 a Month over 24 month contract = $192

Excess on Insurance = $350

Total = $542

Ok, just googled “buy Iphones” and saw that people are selling  new ones for around $600-700. So you tell me is this value for money? is not a credit provider and does not act as a intermediary between any credit providers. This website does not provide Financial Product Advice or deal in the sale of any financial product. If you require this service it is recommended to seek the help of a professional. You should consider your own specific circumstances before making any Financial decision.