Only pay for insurance when insurance is needed

Sounds easy.... When is insurance an unnecessary expense?

At the end of your contract period, most networks will offer you a free upgrade if you have spent enough with them every month. In 2003, T-mobile offered free upgrades for average monthly spends of £30. Other networks have other limits – phone your network to find their phone upgrade requirements.

If you are due a free (or very cheap) upgrade, why carry on insuring your current mobile?

Steps to saving money

  1. Avoid tying yourself to a 12 month insurance contract. While some insurance companies tie you to 12 month contracts, most won't.
  2. Insure your phone when it is new: 3 months free policy or new policy - check the terms for the policy you need. With 12 or 18 months before you get a free upgrade, this is when insurance pays for itself
  3. Towards the end of your contract (especially after 12 months) check that you qualify for a free upgrade. IF you do, cancel your insurance. Why? - because, if you lose or damage your mobile phone, you simply replace it with the free upgrade from the network.

Remember to insure your new upgrade phone as you are now 12 or more months away from your next free upgrade.

A Word of Warning

When you cancel your insurance you also lose the cover for fraudulent calls.