Gadget insurance, and insurance in general, is one of those annoying but sometimes necessary adult life things we have to do. Some people decide that insurance is just not worth the monthly layout, while others have so many gadgets that paying out a few pounds a month is worth it.
One thing is for sure, there are so many insurance companies out there vying for your attention, that it can be really difficult to decide which one is for you. We decided to put together five top tips to help you along the way.
- Check the Guarantee or Warranty Period
If your gadget turns out to be faulty after its purchase, you are entitled to a redress from the store you purchased it from. Ensure you know where you stand should such an event occur. If it is still within the warranty or guarantee period, it is the manufacturer’s duty to resolve this issue. A warranty or guarantee will normally not protect you if you lose or drop your device even if it is still within the specified period. Gadget insurance will normally cover faults occurring outside the manufacturer’s guarantee period, so ensure it is worthwhile paying for it.
Maybe consider how often you have managed to damage your smartphone in the past. Are you forgetful? Dropped it down the toilet multiple times? You should probably consider insurance. For those more gadget-friendly among us, insurance might be an unnecessary layout. If you’ve never lost your phone, and only damaged it a couple of times, the money you’ve spent to fix it probably worked out less than having insurance for a year would.
- Check the Cost of Replacement
Before you purchase a gadget insurance policy, look at its cost compared to how much it would cost to replace the gadget. If it doesn’t make sense, there is no need for this policy. Upon the expiry of your guarantee or warranty period and you do not have insurance, you will need to pay for your gadget’s replacement or repair if it is due to wear and tear, misuse, or accidental damage. If you purchase a gadget insurance policy that covers situations such as theft, loss, or accidental damage, the insurance company should pay for a replacement or repair.
- Check what is covered and what is not
Most insurance companies protect gadgets against accidental damage, unauthorized calls after you lose your phone, theft, and liquid damage. They include a period of this cover when you travel abroad. It’s important that you read the small print to know what you are not covered for and any applicable exclusions.
- Check Your Provider’s Excess Fee
If you have to make an insurance claim, there are high chances that you will be required to pay an excess fee. This fee will usually increase with every claim. Most policies will also include the number of claims you can make a year.
- Ensure you get Value for Your Money
Choosing whatever insurance is being offered by sales staff when you buy your gadget without much though may be convenient. However, this might not necessarily be the best deal out there. Do not feel pressured to make any decision there and then. Do a little research beforehand and find what meets your needs.
Various insurance companies offer policies tailored to meeting your specific needs and circumstances. An example could be family gadget insurance policies which allow you to cover up to ten gadgets, or special student insurance packages which offer discounts. You can find lots of codes on the NUS website.