Phones, laptops and other gadgets are expensive and easily lost, damaged or stolen, which is why gadget insurance is widely sold. But it is not always the best way to protect them. This guide explains gadget and mobile phone insurance: what it covers, whether it is worth it, and the alternatives to consider.
What gadget insurance is
Gadget and mobile phone insurance covers portable devices, such as phones, tablets, laptops, smartwatches and cameras, against risks like accidental damage, theft, loss and breakdown beyond the warranty. It usually covers the device wherever you take it, which is the point, since gadgets are most at risk out and about. Cover can be for a single device, often a phone, or for several gadgets together under one policy.
What it typically covers
A typical gadget policy covers accidental damage, such as a cracked screen or liquid damage, theft, and sometimes loss, plus breakdown after the manufacturer's warranty ends. Many policies also cover unauthorised calls if a phone is stolen, and accessories. Importantly, cover for loss, as opposed to theft, is not always included, so if you are prone to misplacing things, check that loss is covered, as it is a common and useful feature.
Is it worth it?
Whether gadget insurance is worth it depends on the device's value, how likely you are to damage or lose it, and the cost of the cover against the cost of replacing the gadget. For an expensive phone you could not easily afford to replace, cover can make sense. For a cheaper device, or if you could comfortably absorb the cost, it may not. As with any insurance, weigh the premium against the risk you are covering.
Check what you already have
Before buying standalone gadget insurance, check whether your gadgets are already covered elsewhere. Your home contents insurance may cover them at home, and personal possessions cover can extend that protection to when you take them out of the house, as our guides to contents insurance and personal possessions cover explain. You may also have gadget cover through a packaged bank account, so you could already be paying for protection you do not realise.
Packaged bank accounts and existing cover
Many packaged bank accounts, the kind with a monthly fee, include mobile phone or gadget insurance as a perk. If you have one, your phone may already be covered, making separate gadget insurance unnecessary. It is worth checking the terms, including the limits and excess, but if you are paying for an account that includes cover, using it avoids paying twice. Always check existing cover before buying a new policy.
Watch the excess and conditions
Gadget policies often carry an excess, the amount you pay towards a claim, which can be significant relative to the cost of a repair like a screen replacement. They also have conditions: you may need to report theft or loss promptly and to the police or network, and cover for loss left unattended may be excluded. Reading these conditions matters, as they determine whether a claim will actually be paid.
The alternative: self-insuring
For some people, the best approach is to look after their devices carefully, use a good case and screen protector, and set aside the money they would have spent on premiums to cover repairs or replacement themselves. Over time, this can work out cheaper than insurance, especially for those who rarely damage or lose their gadgets. It puts you in control, though it leaves you exposed to an early, expensive loss.
Single device or several
You can usually insure a single gadget, most often a phone, or several devices together under a multi-gadget policy. If you own a phone, tablet, laptop and smartwatch, a multi-gadget policy can be more convenient and sometimes cheaper than insuring each separately. Work out which devices you actually want covered and their total value, then compare single and multi-gadget options to see which gives the cover you need at the better price.
Repairs, refurbished and replacement
Check how a policy settles claims. Some repair the device, some replace it, and replacements may be with a refurbished rather than a brand-new model. For a newer or higher-value gadget this matters, so look at whether you would get a like-for-like replacement and how quickly. Knowing how claims are handled, and any wait for a replacement device you rely on daily, helps you judge whether the cover suits you.
Reporting requirements
Gadget policies usually require you to report theft or loss promptly, often within a set time, to the police and, for a phone, to your network so the device can be blocked. Missing these steps or deadlines can lead to a refused claim. Knowing the reporting requirements in advance means that if the worst happens, you can act quickly and correctly, keeping your claim valid rather than losing it on a technicality.
Students and families
Students taking expensive devices away to study, and families with several gadgets among them, are common situations where cover is considered. Some home insurance can extend to a student's belongings away at university, and family multi-gadget policies can cover everyone's devices together. Before buying separate cover for each person or device, check whether a family policy or existing home insurance already provides protection, to avoid paying more than once.
Reading the small print
Gadget insurance is an area where the small print really matters, because exclusions and conditions are common: unattended loss, certain types of damage, or devices used for business may be excluded or limited. The headline of full cover can hide important restrictions. Taking a few minutes to read what is and is not covered, and the conditions for claiming, ensures the policy would actually pay out in the situations you are most concerned about.
The bottom line on gadgets
Gadget insurance can make sense for an expensive device you could not easily replace, but it is an area where it pays to check what you already have and read the conditions closely. Look first at your home contents and personal possessions cover and any packaged bank account, weigh the excess and exclusions, and for cheaper devices consider whether careful handling and a saved repair fund would serve you better than a monthly premium.
In short, check first, read the conditions, and only pay for cover that genuinely beats relying on what you already hold.
In short
Gadget and mobile phone insurance covers portable devices against accidental damage, theft, often loss, and breakdown, wherever you take them. Whether it is worth it depends on the device's value and your risk. Before buying, check whether your home contents or personal possessions cover, or a packaged bank account, already protects your gadgets. Watch the excess and conditions, and for cheaper devices, self-insuring by saving for repairs can be a sensible alternative.
Where to get help and next steps
Read our guides to contents insurance, personal possessions cover, and bicycle and e-bike insurance for another portable-item cover. This is general information, not financial advice.