Cellphone Insurance: Smart Cover or Waste of Time?

You’ve just splurged on that brand new phone you’ve been eyeing for a while. Now you can finally tuck your old phone away in a drawer and forget you ever had to contend with its cracked screen, short battery life and ancient camera. There’s just one thing, though — a voice in the back of your head keeps reminding you that you shouldn’t be using your phone as you haven't taken out Phone Insurance yet. As excited as you are, this is one voice you shouldn’t ignore. Here’s why getting Cellphone Insurance as part of your Portable Possessions policy from First for Women should be at the top of your to-do list. 

The case against Cellphone Insurance

Let’s face it — there are certain things we love spending cash on and others we do so out of obligation. Often, how we feel about a purchase is linked to the gratification we receive from it. It’s easy to see the value in paying off a car or home, as these are tangible assets you use every day. Phone Insurance doesn’t fall into this category. We can spend years paying towards it with nothing to show for it, and this can make us feel like we’re better off spending that money on a monthly pedicure or coffee date with a friend.

Then there’s your perceived risk, and whether or not you feel you truly need Portable Possessions Insurance. Perhaps you work from home and rarely venture out to high-risk venues such as crowded events or outdoor areas. Knowing your phone is within arm’s reach throughout most of your day can make Cellphone Insurance seem downright silly.

Finally, not all of us have had pleasant experiences with insurance. Perhaps you've had a claim rejected in the past that left you out of pocket, and this has made you feel that you’re better off putting money away in a savings account to replace your phone if it gets damaged or stolen. The amount of paperwork and administration you think that making a claim involves can be similarly, and understandably, off-putting.

The rising value of smartphones

The first thing you need to realise when understanding the value of Cellphone Insurance in South Africa is the true value of your phone.

Twenty years ago, the average phone could make and receive phone calls and messages. It had a rudimentary camera and at most the ability to download a few simple ringtones. It was a communication device — pure and simple.

These days, phones are capable of doing all but walking on water. You can film Hollywood-worthy content and share it with millions with little to no effort. You can communicate with clients across the world at the touch of a button. You can have your favourite food delivered to your doorstep, book a taxi and manage your banking, health and fitness from the comfort of your bed. You can even connect your phone to your television, car and smartwatch when needed.

These benefits are available on most smartphones, and the more upmarket your device is, the more you can expect to pay. Brands like Samsung and Apple dominate the South African market, with both tech giants offering models that retail in excess of R20 000.

The case for Cellphone Insurance

While the most obvious perk of Phone Insurance is being able to replace or repair your phone, its benefits are much more extensive. Here are a few of them.

●  Safety: Knowing you can get another phone can reaffirm your decision to give it up and not confront attackers if you’re hijacked or mugged. No device is worth your life.

●  Convenience: With phones being such an integral part of our lives, even a few days without one can be a major inconvenience. It means an inability to contact loved ones while out and about, and an ability to shop, bank or do other essential activities unless in person or at a desktop computer. It’s likely to disrupt your schedule and create quite a headache.

●  Accidents happen: Your phone drops and cracks, kids spill something on it, or it ends up in the toilet after slipping out of your back pocket. These accidents are a pain, and even more so when you cannot afford to replace a broken device.

Who Really Needs Cellphone Insurance?

By now, you’ll be familiar with the necessity of having insurance. Cellphone Insurance is worth signing up for if you tick one of these boxes:

• You own a high-value phone (R10k+)

• Your smartphone is used for work or safety

• You’re often out with your phone on public transport, in the city, or on-the-go

• Replacing it would leave you out of pocket

However, it’s worth mentioning that insurance won’t prevent you from the inconvenience of having a phone lost, damaged or stolen — nor will it make the administration involved more pleasant. Its benefit is primarily in preserving your finances and getting your phone replaced with a similar make and model. Also keep in mind that while older phones may have lower market value, they can still be insured. First for Women indemnifies you based on the current market value, not the original purchase price.

Get a Cellphone Insurance quote online

You now know that you need to insure your phone. First for Women offers Cellphone Insurance as part of our Portable Possessions policies. Get a free Cellphone Insurance quote online with First for Women. 

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Sources:

 mybroadband.co.za: South Africa’s top smartphone brands

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice. First for Women is a licensed non-life insurer and FSP, Ts & Cs online.