Up to 700,000 phones stolen a year but specialist insurance may not be necessary, says BIBA.

Just under 2,000 mobile phones are stolen in the UK every day making it important for customers to consider insurance. But the British Insurance Brokers’ Association warns that mobile phone insurance policies can prove expensive and may be difficult to claim on.

Specialist insurance policies sold by mobile phone firms can range from £7.99 to £9.99 a month adding up to between £95.88 and £119.88 a year. This can total more than the cost of replacing a phone, with standard replacement handsets costing £40.

Peter Staddon, Head of Technical Services at BIBA said: “The main reason for insuring a mobile phone is to cover replacement costs if the phone is lost or stolen and the potential cost of calls on the phone when it is lost or stolen.

“However many policies say that if the owner leaves their phone unattended in a public place and it is stolen or damaged then the provider can refuse replacement or payout. Also, some policies stipulate that ‘airtime abuse’ must be reported within 24 hours otherwise they can refuse to cover the costs.

“Most handsets are relatively cheap so insuring them for the wrong reason can be a waste of money. However, if you have a very expensive mobile phone it generally makes sense to buy insurance sold by the phone company but check the cost via your broker as well.”

BIBA advises consumers that it may be cheaper to add their phone to their home contents insurance. This can cost a few extra pounds but is likely to work out much cheaper than a specialist phone insurance policy. Some home insurance policies will not charge for covering for the phone at all. However, customers should be aware home insurance will usually not pay out for the cost of calls made on the stolen phone unless you ask for it.

BIBA offers the following advice to consumers:

• · Never leave your phone unattended in a public place or unlocked vehicle
• · Bar your phone as soon as you are aware it’s been lost or stolen
• · Read your mobile phone insurance policy carefully to see what it does and does not cover for
• · Check your household contents policy to see if it includes cover for mobile phones
• · Ask your home contents insurer what it would cost to extend your policy to cover a mobile phone

To ensure quality cover at competitive premiums, consumers should contact a broker. To find your nearest local BIBA broker visit the ‘find a broker’ section of the BIBA website, www.biba.org.uk or contact BIBA’s dedicated consumer helpline – 0870 950 1790

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British Insurance Brokers' Association
BIBA is the UK's leading broker and intermediary organisation, representing professional insurance brokers and intermediaries.

BIBA is committed to playing a central role in the industry, from providing business backing and training for British brokers through to media liaison and high-level industry representation. We also actively participate in helping the industry and its customers deal with some of the major insurance issues of the day.

BIBA members operate to a very high standard of customer service with the aim of ensuring peace of mind, security, financial protection and the professional advice required.

Authoritative, independent and impartial, BIBA a not for profit organisation, is uniquely relied upon by brokers and the consumer.

BIBA – Leading the way in UK Insurance - www.biba.org.uk

For Further Information please contact:

BIBA
Leighann Burtrand
020 7397 0223
burtrandl@biba.org.uk