A video is circulating on social networks where a man drops a smartphone from ten floors. Surprise: Apart from some damage to the screen, the mobile continues to work and can even transmit the video of its fall of about thirty meters. The story does not say whether its owner was insured. And if he was, what would have changed?
Mobile phone insurance is a so-called affinity insurance, in other words linked to a product or service distributed by a non-insurance company and which is not the main reason for purchase. This type of insurance is thus available, for example, for warranty extensions or even travel cancellations. It is absolutely not mandatory.
When it comes to mobile phones, most policies cover breakage, oxidation, pickpocketing or burglary. Depending on the contracts and the companies that issue them (specialist insurance companies), the rates vary between 3 euros and 30 euros per month.
Limits and exclusions
However, mobile insurance suffers from several shortcomings. The first relates to exclusions of warranties. The simple loss of the device or its breakage by a third party is often excluded from the contracts. These also include warranty limitations such as the number of damages per year or the geographical limit (coverage limited to France). Most of them also do not provide a deductible or a very low one. Finally, they may impose a waiting period, for example a month, during which you cannot use the insurance.
The hunt for duplicates
It is also possible that the insurance offered specifically for your mobile will give you a guarantee that you are already benefiting elsewhere. Thus, your multi-risk home policy will likely cover certain damages to your various electronic devices or even when they are used outside the home through an extended warranty.
Similarly, your car insurance’s “all-risk” policy can cover you against theft from your car. It is therefore important to read these various contracts carefully to eliminate duplicates.
Evaluate the offers
Before taking out insurance, you must check your needs carefully, for example if you use your mobile phone for professional use, which exposes it to certain risks, or if your phone has cost you a lot of money. The National Consumer Institute strongly advises not to buy insurance, but to evaluate the offers and compare them. Also, never buy insurance in the store or online if you are not presented with the contract that you must read.
How to cancel your insurance
When you take out your mobile insurance, you have 14 days to change your mind. In addition, you are employed for one year.
After this, thanks to the Hamon Act from 2015, you can cancel your insurance at any time without reason and without charge.
However, during your first subscription year there are a few reasons for termination, such as loss, theft or destruction of the phone, prolonged illness, excessive indebtedness and more generally cases of force majeure.