Now that we’re living in a digital age, more and more people are relying on their mobile phones to get them through the day - from making travel arrangements and scheduling appointments, to taking photos and staying in touch with friends and family, phones are an increasingly important part of our day to day lives.
But with such a heavy reliance on our gadgets, it can make losing a phone (or having one stolen) far from ideal. Not only is having a mobile phone incredibly useful, having the power of Google at your fingertips 24/7, but not having the ability to message or call your loved ones can leave you feeling a little isolated.
So what can you do in these situations?
If you’re prone to losing or damaging your phone, then you might want to have a look into ‘New for Old’ cover on your mobile phone insurance.
Getting a replacement phone
New for Old cover is where, in the event of a claim, your insurance policy will pay out for a new mobile phone of equivalent value to your original phone. This is regardless of the age of the device, although most insurers will specify a maximum age that the phone can be at the time a claim is made, usually around three years old. But essentially, your insurer will pay out the equivalent value of your old phone if you were to buy it again brand new.
- You lose your iPhone that is two years old. Instead of receiving the amount it costs at depreciated value, you’ll receive the full original value of the phone.
New for Old is sometimes included as part of a mobile phone insurance policy, which brings us to the question that a lot of people ask themselves - is mobile phone insurance worth it?
Here are some of the key scenarios you should consider when deciding whether to take out mobile phone insurance.
I have lost my phone
As we’ve already discussed, losing a phone can cause huge disruptions to your day to day life, so you’re not going to want to wait too long for a replacement. For example, if you carry both a work and a personal phone, should one of them get lost you could be faced with the aggravation of combining both your work and personal life on the same device until you can get a replacement. Not only is this hassle from an organisational perspective, but you could be breaching company policy, or even the General Data Protection Regulation (GDPR) by doing so.
But even if you only have the one phone, you’ll still want to get a replacement as quickly as possible to avoid further disruption.
The idea of New for Old is to make technological mishaps easy to deal with, ultimately mitigating the stress of having to pay out lots of money towards a replacement phone – after all, our research shows that the average value of a student’s mobile phone is £397,* probably more than most people would want to pay out for a replacement.
My phone has been stolen
Having a phone stolen is another frustrating (and sometimes frightening) situation to be in. If your phone has been stolen, the first thing you should do is file a police report. You never know – similar thefts may have occurred in your area, so the police may already have information that could help retrieve your phone or catch the culprit quickly. Alternatively, your report could be the start of ongoing cases that could help other people too.
New for Old cover can also apply to stolen phones - so should the unfortunate happen you’ll still be able to get a replacement phone at the original purchase price.
Insure your phone and get New for Old
The question of whether to insure your phone depends entirely on your situation. Do you rely heavily on your phone day to day? Or, is it a case of rarely using your device at all?
Whatever your circumstances, insuring your mobile phone lowers the risk of being left in the lurch should something happen to your device. And by choosing a policy that provides New for Old cover, you can be certain that you’ll not be left out of pocket, and back online in no time.
*Endsleigh Student Lifestyle survey 2017-18