Best Insurance for Gadgets

What is gadget insurance?

Gadget insurance is a type of policy that’s specifically designed to protect your electronic devices and provide financial support for repair or replacement should they be lost, stolen or damaged.

It operates in much the same way as any other insurance policy – you pay a monthly or annual premium and, if your device suffered an insurable event, you’d make a claim that would hopefully reimburse you for any loss. Given how expensive a lot of gadgets can be, it could be worthwhile to consider this kind of cover.

Gadgets that can be insured

Most personal electronic devices can be insured by gadget cover, including:

• Smartphones
• Laptops and tablets
• Digital cameras
• Smartwatches and fitness trackers
• Wireless earbuds
• Games consoles
• Satnavs

Note that this isn’t an exhaustive list, and all insurers will be different in terms of the gadgets they will and won’t cover. It’s important to compare policies thoroughly so you can be sure your particular device will be financially protected.

What does gadget insurance cover?

Every policy is different, but typically speaking, the best gadget insurance will cover the cost of repair, replacement or reimbursement of your device against the following:

• Loss or theft
• Accidental damage, including cracked screens and liquid damage
• Mechanical failure or breakdown (if your device is out of warranty)

You’ll want to make sure that your policy includes cover when outside the home, and the very best gadget insurance policies will include worldwide cover as well, which can be ideal if you travel a lot. If you’re specifically looking for mobile phone cover, check that the policy includes cover for unauthorised phone calls as well.

However, note that some insurers will charge extra for certain types of cover – some basic policies won’t cover loss as standard, for example – while others will let you create a package that’s tailored to your needs. This is why performing a thorough gadget insurance comparison is essential before you make your decision, ensuring you’ve got the level of cover that’s right for you.

What isn’t covered?

As with all kinds of insurance, there will be certain things that are excluded from your policy. The specifics will depend on the insurer, though some common exclusions are:

• Cosmetic damage
• Damage that’s already covered by the manufacturer’s warranty
• Loss or damage where you didn’t take proper care of your device
• The contents of your device (such as photos or software)

Bear in mind that some providers won’t insure a phone that’s over six months old, and others won’t insure models with a screen that’s over a certain size. Nearly all will require proof of purchase for any device you’re looking to insure as well, so make sure to have it to hand.

Are my gadgets already covered?

You may already have a certain amount of protection through other financial products, such as your home insurance or even your current account. Some packaged current accounts include gadget or mobile phone insurance as an additional perk, though make sure to check the level of cover, excess and claims rules (some will only allow you to make one claim in a year, for example).

Pay particular attention to the terms and conditions of any other insurance policy as well. For example, if your gadget is covered under your home insurance, make sure to check that this includes when it’s taken outside the home. Check the excess too, as a standard home insurance excess may already be higher than the cost of a new device, which would mean you’re not sufficiently covered.

Do I need gadget insurance if my device is still under warranty?

Most electronic devices will come with some form of warranty as well, though this will usually only be for a short space of time, and will typically only cover mechanical breakdown. Things like accidental damage and loss/theft won’t normally be covered, so it may be worth investing in a basic gadget insurance policy if your device would cost a lot to repair or replace.

How much is gadget insurance?

The cost of gadget insurance in the UK will depend on a number of factors, including:

• The value of the gadget you’re looking to insure.
• The number of gadgets you want covered. You may only want to insure one device, or you could have two or more devices that you’d like to include. While this will increase the cost overall, there may be discounts available for those who insure several gadgets under a single multi gadget insurance policy.
• The level of cover. Some insurers will offer a basic level of cover and will charge for optional extras, whereas others will offer a more comprehensive package as standard, but usually at a higher price.
• The excess. Typically speaking, the higher the excess, the cheaper the policy, but make sure it isn’t too high. If it is, you could end up spending a lot in the event of a claim anyway, which could make the policy far less beneficial. Find out more by reading our guide to insurance excess.

As a ballpark figure, electronic device insurance can cost anywhere from £1.50 per month to £15+, though this will vary depending on the provider. You may want to see if you can get a discount for paying annually rather than monthly, and always shop around to make sure you’re getting the best deal. You can use our chart to start your gadget insurance comparison and see the kind of prices on offer.

Is gadget insurance worth it?

This entirely depends on your priorities, your habits and how much your devices actually cost. If your smartphone is an older model and you’ve never lost or damaged one of your gadgets before, it may not seem that worth it. But, if you’ve lost a few phones over the years or have been known to crack a few screens, opting for a specialist gadget insurance policy could be beneficial, particularly if you have the latest models.

You simply need to consider if you could afford to replace the gadget yourself, and how likely you are to actually need to. Make sure that you’re not covered elsewhere too, as there’d be no point in paying for cover you’ve already got. Double-check the terms and conditions of any other policy though, particularly the excess and rules around insuring devices outside the home, to make sure you’ve got the coverage you need.

Should I get gadget insurance or save?

Rather than paying for an insurance policy you may never need to use, you may have considered setting up a kind of insurance savings account instead. This could allow you to put money you’d otherwise use to pay for premiums into an account that could be used to repair or replace any gadgets, and if you never needed to replace anything, you’d still have the money (plus you’d have a little extra thanks to savings interest). However, the risk here is that it could take a while to build up a big enough savings pot to replace a high-value gadget.

Let’s say you put aside £10 a month into a savings account instead of paying the same amount on an insurance premium. After 11 months you’d have accrued £110 (plus a small amount of interest), but if you then lost your phone that was worth £1,000, you wouldn’t have enough in your savings account to cover it. In contrast, an insurance policy could have paid out regardless of the length of time you’d been paying your premiums.

Again, it all comes down to your priorities, not to mention your budget. Use our chart above to see the kind of quotes available for gadget insurance, and see if it’ll be worth it for you and your needs.