How Does Phone Insurance Work?

It doesn’t take much to lose or damage your phone. Drops, spills, pickpockets or even loss can leave you without any way to contact friends and family and could result in a costly repair or replacement. 

That’s where phone insurance comes in covering policyholders if they break or lose their devices, spreading the cost should the unexpected happen. 

But how exactly does phone insurance work? And how do you know what’s included in your policy and what isn’t covered? 

Mobile phone insurance works like a traditional insurance policy, with the policyholder paying regular premiums (typically monthly) to the insurer, which then protects them against the cost of repairing or replacing their handset should the worst happen. 

Also, like other traditional insurance policies, you may be required to pay an excess in the event of a claim. Excess amounts will vary depending on the insurance provider, the type of claim and the device you are claiming for. Take a look at our Gadget Excesses table to see the amounts for Protect Your Bubbles cover. 

Most standard phone insurance policies protect against accidental or liquid damage, as well as optional add-ons such as loss and theft cover, repairing or replacing devices if exposed to these perils. 

This allows policyholders to tailor their cover to their needs and protect against one, or multiple risks facing them and their devices. As with all insurance policies, you should read the full terms and conditions to make sure the cover is right for you.  

Protect Your Bubble Mobile Phone Insurance covers against accidental damage including smashed screens and liquid damage plus mechanical breakdown, with optional theft cover and loss cover from just £1.50 per item*. 

If you are interested in Protect Your Bubble mobile phone insurance, please read the full terms and conditions and the Insurance Product Information Document (IPID) before purchasing, to make sure it suits your needs and wants. 

Phone insurance coverage varies by provider, policy and optional add-ons, and it’s important to understand the exact terms of your policy before insuring your valuable devices. 

However, there are some common phone insurance coverage options that most policies include as standard or as add-ons. These include: 

Accidental damage 

Liquid damage 

Smashed Screens (that impact device functionality) 

Mechanical breakdown (once the manufacturer’s warranty has run out) 

Theft 

Loss (typically an optional add-on) 

Unauthorised network charges (typically limited by time and value) 

Most phone insurance policies include certain coverage as standard, with further optional coverage available at an additional monthly cost allowing policyholders to customise their policy to their exact needs and risks.  

For most phone users, insurance could prove valuable especially with new devices becoming more expensive as manufacturers continue to innovate handsets with new features and technologies. 

If you bought a brand-new smartphone without insurance and cracked the screen, or worse, could you afford to foot the bill all in one go for repairs or even a replacement device? 

Phone insurance protects policyholders against these costly accidents, allowing them to send or take their handset for repair or possibly receive a replacement if their phone is unrepairable. 

This is why many people find the monthly premiums associated with phone insurance to be affordable compared with the potential cost of replacing a device outright if the worst should happen to their phone. 

For example: 

A brand-new iPhone 16 handset starts from £799 * to purchase outright if you damage your device beyond repair and need to buy a replacement. 

Protect Your Bubble iPhone 16 insurance for an iPhone 16 256GB is £7.99* per month, including cover for Accidental Damage and Mechanical Breakdown and Theft. With unlimited repairs and 2 replacements per year, per item** – as well as a 20% discount for new phones (purchased in the last 30 days) when insuring 2 items or less. 

*Price correct at time of publication and subject to change 

** Underwriter Assurant General Insurance Limited. Gadget age restrictions, T&Cs and excesses apply. Customer UK 18+. 

It’s encouraged to report a damaged, broken, lost or stolen phone to your insurance provider as soon as possible after discovery. 

This means the claim can be processed as quickly as possible and any repairs or replacements can be verified, authorised and approved, so you’re not without your device any longer than necessary. 

Reporting early also means you’re able to provide the most accurate account of events to your insurer, to help the claims process go as smoothly as possible. And some insurance providers may even have requirements around reporting that may impact your policy if not met. 

As well as claiming on your phone insurance, it’s also helpful to notify your network provider and the police (if you suspect the device has been stolen) as soon as possible.  

Your network provider will be able to block your device and SIM card to help prevent unauthorised charges, while the police will provide you with a reference number that your insurer may ask for when making a claim. 

Some phone insurance providers may not allow claims in the first few weeks of the policy and some become active immediately after payment (unless otherwise stated or if a future activation date is selected), it’s important to note existing or previous damage, loss or theft cannot be claimed on a policy bought after the incident. This will be clearly outlined in your policy terms and conditions. 

With Protect Your Bubble you have instant cover**, any incident occurring before the policy was purchased is not covered by our insurance. If claiming early on your policy, you may be subject to more stringent checks. These checks are in place to protect all our customers against the consequences of fraud. 

** Underwriter Assurant General Insurance Limited. Gadget age restrictions, T&Cs and excesses apply. Customer UK 18+. 

To cancel your phone insurance, contact your provider directly, typically by phone or email, or check the terms of your policy for alternative cancellation requirements.  

It’s important to have all your personal and policy information on hand when doing so, as your insurer will likely request them to confirm cancellation. 

Do not attempt to cancel your direct debit without alerting your provider, as this will not end your policy and you may still be required to pay your premiums until you’ve confirmed the end of your policy with your provider. 

With a Protect Your Bubble policy you can cancel at any time, the quickest and best way is by calling us: 0330 333 4792 (Monday to Friday, 8 am to 6 pm) 

If you cancel within the first 14 days after you receive your insurance documents, you'll receive a full refund. After the first 14 days, we will cancel the policy at the end of the current month. For example, if you have paid your latest monthly premium on the 1st of January and contact us to cancel on the 15th of January, we will set the policy to cancel on the 31st of January and collect no further premiums. No refunds will be paid at cancellation. See our Terms and Conditions for full details 

Whether or not your home insurance covers your mobile phone depends on your provider and the exact terms and conditions of your policy. 

Some home insurance policies include accidental damage cover that may extend to your mobile phone but is often limited to specific incidents and types of damage. 

Similarly, home insurance policies with additional personal possessions cover may provide protection for your phone, such as loss, theft or accidental damage but, again, it could be limited in coverage and may not be protected outside of the home. 

You may also want to consider the possible premium increase on your home insurance should you have to make a claim for your mobile phone. 

So, if you’re looking for cover for your mobile phones, against the likely risks facing your device in particular including accidental or liquid damage, loss, theft and mechanical breakdown, then stand-alone phone insurance could be a good option. Remember all insurance policies are not equal and it's best to read the full terms and conditions to find which best suits your needs. 

Stand-alone mobile insurance policies typically come with optional add-ons, so you can tailor them to your exact needs.