Phone insurance pays to repair or replace a handset that is stolen, lost or damaged. Whether it is worth having depends on what the phone costs, how you use it, and what cover you already hold without knowing. This guide covers where cover comes from, why claims get declined, and what to do if your phone is taken.
Where cover comes from
| Source | What it usually covers | What to watch |
|---|---|---|
| Network | Damage, loss and theft, billed with your plan | Can end if you leave the network. Some stop when the plan ends. |
| Manufacturer, such as AppleCare One | Repairs for accidental damage, and theft and loss on some plans | AppleCare One is £16.99 a month for three devices, with extra devices at £4.99 each. Limits apply to theft and loss claims each year. |
| Samsung Care+ | Accidental damage and theft on most plans | Cover for loss is not offered on its plans, and you must sign up within six months of purchase |
| Specialist or retailer policy | Damage, loss and theft | Excess, claim limits and the care conditions vary a lot |
| Home contents | Theft at home, and damage if you add accidental damage cover | Away from home cover is often an extra. Limits per item vary, often between £1,500 and £2,000 before the phone must be named. |
| Packaged bank account | Often includes phone cover | Many people pay for cover twice without realising |
Insurance is regulated by the Financial Conduct Authority. If a claim is refused, you can complain to the Financial Ombudsman Service, which is free.
Check what you already have
Before you buy, look at your bank account, your home insurance and any manufacturer plan. Phone cover on a bank account is easy to forget. A contents policy usually covers a phone stolen at home, but outside the house you normally need the away from home option. Check the excess too. If the excess on your home policy is higher than the value of the phone, a claim will not pay out.
What insurance does not cover
- Wear and tear and software faults. A phone that slows down, or a battery that fades, is not damage.
- A faulty phone. Under the Consumer Rights Act, the seller must deal with a phone that was faulty when sold. Our guide to buying a used phone with its own warranty covers how warranties differ from insurance.
- Cosmetic marks, in many policies.
- Claims beyond the policy limit, which is often two or three lost or stolen phones in 12 months.
Why claims are declined
Most phone policies include a “take care” condition. An insurer can refuse a claim if it decides you did not take reasonable care of the phone. Examples include leaving it on display in a car, leaving it on a table when you step away, or leaving it with someone you do not know well. In recent cases the Financial Ombudsman has backed insurers where a phone was left unattended in a car overnight or in an unlocked bag on a plane, and has backed customers in other cases, so the circumstances matter.
Before you sign, read the “what you are not covered for” section and look for this wording. Treat it as part of the price.
Is it worth it?
- Work out the total premium over the time you will keep the phone, then add the likely excess.
- Compare that with what a repair or replacement would cost.
- Ask whether you could pay for a replacement without trouble. If you could, self insuring may cost less.
- Check whether you already have cover.
For an expensive phone that you carry everywhere, cover makes sense. See our guide to expensive handsets worth protecting for the ones that cost most to replace. On a cheap phone, cover can cost a large share of the price, so read cheaper phones where cover may not pay off. For a child’s phone, think about cover for a child’s phone, since lost and cracked phones are common.
If cover is offered when you take a handset, see what a phone contract already includes, and compare monthly costs before adding cover on the monthly plan prices. Insurance should be your choice, so check your basket and bill for an add-on you did not pick.
If your phone is stolen
- Use Find My on an iPhone, or Remote Lock on Android, to lock the phone and track it.
- Tell your network straight away so it can block the phone’s IMEI. It will give you the number to pass to the police.
- Report the theft to the police and keep the crime reference.
- Tell your bank, since banking apps and one time codes are tied to your phone.
- Tell your insurer promptly and give them the crime reference.
Phone theft remains a problem. The Metropolitan Police recorded 117,211 stolen phones in London in 2024, and says theft is now at a four year low. The Met is also pressing phone makers to make stolen handsets unusable by default. Features such as Google’s Theft Detection Lock are already built into some Android phones. Write down your IMEI before anything happens.
Switching, upgrading and cancelling
You can cancel phone insurance within 14 days of buying it and get most of your money back, less any days of cover. Some providers give you longer. After that, the terms are less generous, with a pro rata refund and sometimes a fee.
Network cover can end when your plan does, so read what happens to cover when you leave a network before you go. When you upgrade, check cover when you swap to a new handset, since some policies do not carry over.
FAQs
Does it cover a phone that stops working?
Only if physical damage or an insured event caused it. Wear and tear and software faults are normally excluded.
How many claims can I make?
Policies set limits. AppleCare+ allows up to two theft or loss claims a year, and AppleCare One allows up to three. Other insurers have their own caps.
Will my insurance end if I leave my network?
It can. Some network policies cancel when the plan ends, so ask before you switch.