You should do what you feel comfortable with but always read the terms and conditions. Phone insurance is relatively expensive. Weigh the premium you have to pay each month against the risk of your phone being damaged or stolen. On the other hand, a new phone is quite pricey, and insurance can be smart for the first year. Think carefully when taking out telephone insurance. We will give you some tips.
- Check which covers your home contents or travel insurance already provides
- Check the conditions
- Theft and loss are different things
- Deductible in case of theft
- Deductible repair costs
- How big is your deductible, and what will you get paid if your device cannot be repaired (current value or similar device)
- How long will you be reimbursed for the replacement value? (often max. One year)
- Choose insurance that can be canceled monthly
- Make sure that you transfer or terminate the insurance when you buy a new smartphone
Insure new phone
If you have a phone that is less than two years old, insurance is worth it—Check in advance which insurance policies you already have to avoid double insurance. Then choose insurance that can be canceled monthly and take a good look at the conditions that are part of the telephone insurance policy. In the event of theft, you often have to block your SIM card with the provider as soon as possible and report it to the police. The amount of compensation depends on the age of the smartphone; because these products become outdated quickly, a depreciation will often be applied after one year so that the entire purchase price is not reimbursed. That is why we also recommend that you reconsider after one year and cancel your insurance if necessary. Then you had benefited from it during the period when your smartphone was the most expensive.
Manufacturer’s warranties
With a new phone, there is a warranty scheme for your mobile phone, the factory warranty. This means that you are entitled to a replacement or repair if, through no fault of your own, your device breaks down within two years of purchase, and the damage relates to the factory settings.
But not everything is covered by the manufacturer‘s warranty. User damage, such as damage from drops, bumps, or moisture, is not covered under your smartphone’s general manufacturer’s warranty. Your telephone insurance is there to cover these damages.
Telephone and home insurance
Your smartphone can also be insured under your home contents AT&T insurance if you have extensive coverage. Home contents insurance reimburses damage to your phone due to fire, theft, burglary, and robbery, among other things. The condition is that the damage occurred in the insured home. Insurers have become much stricter in recent years with the reimbursement conditions for falls and impact damage to smartphones. All insurers apply a deductible, which can go up to 175 euros (reference date March 2020), and you will often only be reimbursed for the current value of your device. Do you want to ensure your telephone through your all-risk household insurance? Also, check whether you need the extension “mobile electronics” Because this is no longer included as standard with most insurers.
Duty of care among insurers remains difficult.
Duty of care insurance adviser | what does all this apply to?
Insurance advisors have a duty of care to pay periodic attention to the insurance policies he has in their portfolio. This task is comprehensive. The basic principle is that an intermediary must provide the care that may be expected from a reasonably competent and reasonably acting intermediary. This means that the work does not stop after taking out an insurance policy. During the term of the insurance, the adviser is expected to interact actively and continuously. It is important here that the adviser always checks whether the insurance products are appropriate. This is possible in the field of premium, coverage, changes in policy schedules, etc. We (Vastelastenbond) believe that an insurance adviser is obliged to inform the paying customer of this. How an advisor should act depends on the specific circumstances of the case. But doing nothing is out of the question.
What do you actually expect from your insurance adviser?
We believe that an advisor should be alert and also be prepared to contribute. We don’t see that often in practice. And this is where it gets difficult. This is due to the commission system in the insurance industry. The more expensive your insurance, the higher the commission for your intermediary. That’s weird, of course, because it removes the incentive to notify you of a premium drop.
As far as we are concerned, there is one rule that may make the life of the consultant easier. As many advisers often say, giving (insurance) advice is a human profession. Precisely humans help in fulfilling the duty of care. Do you agree? Please contact us for a no-obligation consultation.
