How does smartphone insurance work?

Surely if you have bought the latest in smartphones, those of 1 000 euros, they have offered to finance the mobile and also take out insurance. If you do not want to give a “shout” before theft or the fall of your new mobile, an interesting option may be mobile insurance. In this post, we explain how smartphone insurance works. We will use as an example the insurance for free mobiles of maxmovil.com, offered by the insurer i-Surance.

But first of all, answer these questions that we ask you.

Is your mobile free or operator?

The first thing to keep in mind is that if your mobile is free, ensuring it is an option that you can hire at any insurer such as the one offered on its Maxmovil website. However, if it is a mobile operator (Movistar, Orange, Vodafone, etc.), they may force you to contract it with their insurer and/or offer their insurance with the sale, in comfortable installments, incorporated into your monthly bill. 

Do you know what the legal warranty of your mobile covers?

During its validity, the law protects the consumer against the malfunction that your mobile may suffer. But only when the origin of this malfunction is due to a manufacturing defect. Only in that case, if the mobile is new, the seller will be liable for defects or lack of conformity that the phone presents up to two years after the delivery date.

However, some users think that if the phone is hit by a fall, if the screen breaks or if it falls into the water and stops working, they will be covered by the legal guarantee. Nothing is more uncertain. In these cases in which the malfunction of the mobile, even within the first two years, is attributable to a fall or moisture that has reached the internal mechanism of the phone, the legal guarantee does not apply. And this is where insurance for your smartphone will make all its sense.

And what is not covered by this legal guarantee

Therefore, it must be clear to you that the legal guarantee does not cover malfunction of the thing covered by manipulation, falls, accidents, etc. And falls to the ground or immersion in the water of a mobile phone cannot be attributed to the manufacturer or the seller but to the user.

Is your mobile new or second hand?

Another thing you have to know is that if they sell you a second-hand mobile phone in a store (typical “reset” phone after being returned by a previous buyer within their right of withdrawal ), the seller (legal entity) and the consumer buyer they can agree on a shorter warranty period. This period by law may never be less than one year from the date of delivery of the reconditioned phone.

If it is a new mobile, until when can you contract?

Be careful, if your mobile is new, whether it is operator or free, each insurer sets a maximum term after the purchase to be able to insure it without the need for an expert to see it (it would not make much sense to be sending experts to see the status of mobile and would not be profitable either). Telephone operators such as Movistar allow you to contract new mobile insurance for up to 15 days from purchase, while Orange and Vodafone are more flexible, and go up to 30 calendar days.

For its part, Maxmóvil allows you to extend the term up to 90 days after purchase (new mobiles, including those not purchased in its online store).

Which is better, the monthly insurance payment or a one-time payment?

When it comes to paying for insurance, the best doesn’t have to be the most comfortable. In other words, the operators use the fact that you are their customer and they have you “hooked” on the monthly bill to offer you very low monthly premiums that “don’t hurt.” However, what you have to calculate is how much you will pay after a year and compare it with other single payment insurance, at the beginning of the coverage period.

This is the case of Maxmóvil insurance, which nevertheless gives you an extra month of premium by paying your insurance once.

What coverage to hire, yes or yes?

If you decide on insurance for your mobile, keep these three coverages in mind, as they are the basis for being well protected during the term of the insurance:

  • Accidental damage : screen breakage. Water damage.
    • These are unforeseen situations such as falls and their consequences. The most common accidental damage to a mobile is breaking the screen. But be careful, because insurers usually put franchises for this type of claim. And the second most common accidental damage is liquid damage. So ask if these two eventualities are covered and if from the first euro or from a franchise.
    • Another coverage related to the above is the possibility of having a replacement phone while yours returns to its being. Ask the insurer about the time limits for this coverage.
  • The theft of the mobile : this “damage” that means that the mobile phone is taken from you can be with force or intimidation (it is considered theft), but be careful, because if it is “carelessly”, we are talking about a theft, and insurance companies usually cover the robbery with a police report, but not theft. Nor will they cover the simple loss or misplacement of the mobile (I don’t know where I put it and I can’t find it).
  • Fraudulent use of the mobile by unauthorized person : this coverage may be more of an “operator” than an insurance company. It is about being covered for misuse of your telephone rate after the theft or disappearance of your mobile.

What other things should I keep in mind?

Other things you have to take into account if you are going to hire:

  • The duration of mobile insurance is usually one year (but some insurers offer you to also insure the second year of life of the mobile).
  • Be careful with the automatic renewal or not of the insurance once the first year is over. And with temporary notice in case of not wanting to renew a second year.
  • If there is a limited maximum number of claims during the term of the insurance. For example, in the case of Maxmóvil, in damage claims, the limit is two parts and the maximum number of claims for theft is one.
  • What happens to your paid-up premium if you change your mobile phone before the end of the insurance term.
  • Remember that normally the policyholder must be the owner of the mobile.