A video is circulating on social networks in which a man drops a smartphone from ten floors. Surprise: apart from some damage to the screen, the mobile continues to operate and can even transmit the video of its fall of about thirty meters. The story does not say if its owner was insured. And if he was, what would it have changed?
Mobile phone insurance is so-called affinity insurance, in other words linked to a product or service distributed by a non-insurer and which is not the main reason for purchase. This type of insurance is thus found for warranty extensions or even trip cancellations, for example. It is absolutely not compulsory.
As far as mobile phones are concerned, most insurance covers breakage, oxidation, pickpocketing or break-in. Depending on the contracts and the companies that issue them (specialist insurer operators), the rates vary between 3 euros to 30 euros per month.
Limits and Exclusions
However, mobile insurance suffers from several shortcomings. The first concerns the exclusions of guarantees. The simple loss of the device or its breakage by a third party are often excluded from contracts. These also include warranty limitations such as the number of claims per year or the geographical limit (coverage limited to France). Most of them also do not provide for a deductible or very low. Finally, they can impose a waiting period, for example one month, below which you cannot use the insurance.
The hunt for duplicates
It is also possible that the insurance offered specifically for your mobile offers you guarantees that you already benefit from elsewhere. Thus, your multi-risk home contract is likely to cover certain damage 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 may cover you against theft from your car. It is therefore essential to read these different contracts carefully to eliminate duplicates.
Evaluate the offers
Before taking out insurance, check your needs carefully, for example if you use your mobile for professional use which exposes it to certain risks or if your telephone has cost you a lot of money. The National Consumer Institute strongly suggests not to purchase insurance, but to evaluate the offers and compare them. Also, never buy insurance in-store or online if you are not presented with the contract to read.
How to cancel your insurance
When you take out your mobile insurance contract, you have 14 days to withdraw. Beyond that, you are hired for one year.
Thereafter, thanks to the Hamon law of 2015, you can terminate your insurance at any time without reason and without charge.
However, during your first year of subscription, there are a few reasons for termination such as loss, theft or destruction of the telephone, long-term illness, over-indebtedness and, more generally, a case of force majeure.