As the value of the average mobile has increased, so has the popularity of mobile phone insurance. We no longer use mobile phones just to make calls, but use our smartphones for emails, social networking, games and maps. Mobile phone insurance prevents you from losing money in case you lose you smartphone.
How much does it cost to lose a smartphone? The customer’s iPhone was stolen while she was on public transit. It did not have phone insurance and the renter’s insurance also did not cover the smartphone and she was told that if she cancelled her smartphone contract, she would be liable for a hefty early termination fee. Losing a smartphone without being covered can be expensive! Statistics say some 60 million smartphones are lost, stolen or damaged each year in US. Smartphone insurance is a complicated game between deductible amount, refurbished phone, annual premium and monthly fee. Hence one must scan the market before buying the best policy.
What does mobile phone insurance not cover? Here are some of the exclusions that can appear in your policy. Carelessness – In case of carelessness your phone will not be covered. The company will not pay the claim on the basis that you did not take reasonable care of the device. Theft without force – If you phone is stolen from your pocket in a busy pub or pickpocketed, then you are not covered either. Some insurance companies only cover if the theft is accompanied by force. Theft while unattended – If you leave you phone in the car or on a table in a café and misplace it, you probably will not be covered. Accidently leaving your phone behind – In case you leave your phone in a taxi, you insurance company will would classify this as ‘accidently’ leaving the phone behind and decline the claim. Delays in your phone stolen or lost – make sure you report you phone missing as soon as possible, may be within 24 hours from being lost or stolen. Water damage – One must check if your insurance covers you for water damages. Your claim might be declined because you have not taken ‘reasonable care’ of the device.
If you put your phone on the ‘lost and stolen’ list then the carrier will not activate the phone and will suspend the services. Once suspended your wireless service cannot be used to make or receive calls, forward calls, retrieve voice mails or access data services. Suspended wireless service means your phone number is still active and you will be charged the monthly recurring fee while the service is in a voluntary suspended status.
One needs to closely check the policy wording or ask the insurance company for clarification. While taking mobile phone insurance one must read the policy booklet carefully to ensure that there are no hidden surprises. Many policies contain vague wordings, which meant the customer often thought they were covered when they were not. One needs to check the policy wording like ‘loss’ and what it means about ‘forgetting’ your phone.
Phone insurances are not cheap and can add to hundreds of dollars a year to your annual phone cost but they provide the much required peace of mind. The insurance provider should try to bridge the gap between what the customer thinks they are getting and what they are really getting. It is important that insurance policies provide the level of protection that they promise and claim processes are fair. But are mobile phone insurance providers offering their customers a fair deal, yes eGranary is!