Is mobile insurance worth it?

Do you know if your iPhone is insured? Indeed, do you face the insurance question somewhat bewildered? Chances are you either hedge your bets and take out mobile insurance without checking what cover you already have, or you bury your head in the sand thinking ‘I won’t need that’. 

Let’s be honest: neither of these is the best approach.

Indeed, as Brits we’re frankly a bit confused about this whole insurance malarkey. On one hand we’re clearly attached to our phones and according to recent research from Dixons Carphone  69% of people say they want insurance, but on the other hand, few of us have it.  

On the flip side it’s easy to become cynical, with so many horror stories of phone insurance not paying out. If it doesn’t, surely it’s not worth the investment?

All Raylo phones come with built-in insurance against loss, theft and accidental/ liquid damage – meaning you’re always reassured that your phone is safe. We take this approach in response to the bigger picture of owning phones, plus to support our subscription model. 

Read on to understand why.

Smash and grab – the reality of phone threats

Smashed iPhone

Staggeringly, in the last two years alone nearly one quarter of us have experienced a smashed screen. For digital natives it’s even worse – 48% of 16-24 year olds have a smashing habit. And we all know how painfully expensive it can be to replace a smart screen. In fact, getting your iPhone 11 Pro Max screen repaired without insurance costs a whopping £326.44 with Apple.

As your phone increasingly becomes integrated with every facet of your life, the expense and hassle of breakage shouldn’t be underestimated. 

The same is true of theft. Around 400,000 mobile phones are stolen in the UK each year. Overall, it’s mostly iPhones that are nicked – sadly, thieves also know they’re among the best devices out there.

Breakages and thefts are a major problem. But is insurance the answer?

Check yourself out

The good news is, your phone could already be covered by two things: your home contents insurance and your bank account package.

Your mobile phone may be insured, to some degree, by your home contents insurance. 

However, it’s important to note that most standard policies usually only cover mobile phones against theft from your home only, or in the case of a house fire. Given your biggest concern is likely that ‘oops, smashed my screen’ moment or a moped theft, this isn’t ideal.

Even if a smashed screen is covered, you may also face a reasonably hefty excess to claim, or any claim might annoyingly put up your premium for next year.

Next, consider your bank account. If you pay for a packaged account with built-in benefits, mobile phone insurance could well be one of them. It’s commonly included alongside things like travel insurance but don’t be surprised if the claims experience doesn’t quite live up to the £15 p/m price tag!

However, even if your device is covered by either or both of these, you could still be paying more than standalone mobile phone insurance – and for less cover. And for those using a corporate device, you should check the T&Cs in detail because some policies exclude phones that you don’t own.

The benefits of mobile phone insurance

Insurance Cover

Standalone mobile phone insurance typically addresses the problems we’ve been exploring.

Firstly, it should include accidental damage cover. So when you drop your pride and joy and watch in horror as the screen smashes, don’t stop breathing: you should be covered. Water damage is also likely to be included; it’s worryingly common how many people get butter fingers near toilets and washing up bowls. With proper phone insurance, you won’t need that bag of rice any more.

Secondly, standalone insurance should have a lower excess, so that claiming is less prohibitive. Usually you’ll find it comes in at around £100.

There are often other benefits to dedicated phone insurance, too. Many policies will include practical cover for things like accessories and accidents whilst travelling abroad – plus a speedy replacement service. 

In all instances, check the policy before you buy.

How we do insurance differently

Think differently.

We’d argue, given the above points, that insurance dedicated to your mobile phone  is the smart choice

But here’s the thing: you don’t need to pay extra for standalone phone insurance. With Raylo, you get full insurance included as standard with your phone subscription – at a fraction of the cost you usually pay overall. 

Insurance can be a labyrinth to navigate, as we’ve seen. In fact, it’s one of several reasons why we think it’s time to shake up the telecoms industry and do mobile phone ownership and insurance differently. 

When you subscribe to Raylo, you get the latest SIM-free iPhone 11 Pro or Pro Max, fully insured against loss, theft and accidental/ liquid damage. At the end of your subscription, you simply return the old phone once you’ve transferred your data to your new phone. That means you get the latest and greatest phone available, with dedicated mobile phone insurance as part and parcel – all at a saving of up to £855 vs the big mobile networks.

How do we do this? Well, it all goes back to our unique subscription model. Because your iPhone 11 Pro technically belongs to us… and we’re committed to our recycling and reuse programme at the end of your 24 months, we want to keep it in good condition too. That means we’ve spent time and effort to get an outstanding insurance policy and speedy, no-nonsense claims process which is good for you, good for us and good for the next user in the cycle. 

In fact, we’ve cut the number of questions you need to answer to make a claim in half, streamlining the whole process so it’s less painful. 

Your world-class iPhone 11 Pro deserves world-class cover you can rely on, after all. With Raylo, your device is fully insured anywhere in the world, and you can make 2 claims in a rolling 12-month period – most policies only allow 1 claim a year, including Apple Care+.

Finally, you also get any repairs to accidental damage carried out by Apple and their authorised suppliers – so you know they’re legit. Once your claim has been fully accepted, just book your slot online and off you go. 

At its heart, this is all about bringing you peace of mind and simplicity. We’ve done the research and brought all you need together, so you simply never have to think about phone insurance again. 

At Raylo, mobile phone insurance is just one more example of how we do things differently, for the better.

Check out our Insurance Policy Summary here.


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