Insurance

Gadget Insurance Guide UK — Is It Worth Insuring Your Devices?

Should you get gadget insurance? What it covers, costs, alternatives, and whether it is better value than extended warranties or self-insuring your electronics.

· 3 min read

With smartphones costing up to £1,500 and laptops even more, the question of whether to insure your gadgets is a genuine financial decision. Here is what gadget insurance offers, what it costs, and whether it is worth the money.

What Gadget Insurance Covers

Cover Detail
Accidental damage Drops, cracked screens, water damage
Theft Stolen devices
Loss Lost devices (not all policies)
Mechanical breakdown After manufacturer’s warranty expires
Liquid damage Spills, submersion
Accessories Chargers, cases (often limited)
Worldwide cover Usually included

Types of Gadget Insurance

Type Best For Typical Cost
Single device Insuring one expensive item (phone, laptop) £5–£15/month
Multi-gadget Insuring multiple devices £10–£30/month
Family All devices in the household £15–£40/month
Bank account add-on Part of a packaged bank account £10–£20/month (overall account fee)
Mobile network add-on Added to phone contract £5–£15/month

Cost vs Value Analysis

Smartphone (£1,000)

Option Annual Cost Cover Level Break-Even
Gadget insurance (£10/month) £120 Full (minus excess) Need ~1 claim every 8 years
Contents insurance add-on £30–£50/year Away from home + at home Better value if only one device
Self-insure (save £10/month) £0 (save £120/year) Build your own fund Works until you need a big claim
No insurance £0 No cover Risky for expensive devices

Laptop (£1,500)

Option Annual Cost Cover Level
Gadget insurance (£12/month) £144 Full (minus excess)
Contents insurance add-on £30–£60/year Away from home + at home
Extended warranty £50–£100/year Breakdown only (no accidental damage)

The Excess Problem

Most gadget insurance policies have an excess of £50–£150 per claim:

Device Repair Repair Cost Insurance Payout (£75 excess) Worth Claiming?
Screen replacement (phone) £150 £75 Marginal
Screen replacement (phone, premium) £350 £275 Yes
Full phone replacement £800 £725 Yes
Laptop screen repair £200 £125 Marginal
Full laptop replacement £1,200 £1,125 Yes

For repairs below £150–£200, the excess means insurance barely pays out.

Alternatives to Gadget Insurance

Alternative Cost Pros Cons
Contents insurance (personal possessions) £30–£60/year add-on Covers all devices, lower premium May have single item limit
Manufacturer’s AppleCare/Samsung Care £100–£200 (2 years) Direct manufacturer support Limited to that brand’s devices
Credit card purchase protection Free (some cards) Covers damage/theft for 90 days Very short window
Self-insure Save the premium No restrictions, no excess No protection until fund builds
Phone case + screen protector £20–£50 Prevents most damage Doesn’t cover theft or loss

When Gadget Insurance Makes Sense

Situation Recommendation
Expensive new phone (£800+) and prone to damage Consider it
Multiple devices with high total value Multi-gadget policy
Children with devices Accidental damage risk is high
Frequent traveller Higher theft/loss risk
Already have good contents insurance Check if personal possessions add-on is enough
Cheap/mid-range phone (under £300) Self-insure — premium costs more than the risk

Tips for Buying

  1. Check your contents insurance first — you may already be covered
  2. Check your bank account — packaged accounts often include gadget cover
  3. Read the excess carefully — high excess makes insurance less valuable
  4. Check the claims process — how quickly is a replacement provided?
  5. Consider the claim limit — is it enough to replace your device at current prices?
  6. Check loss cover — not all policies cover lost devices
  7. Annual vs monthly — annual payment is usually cheaper

Making a Claim

Step Action
1 Report theft to police within 24 hours (get crime reference)
2 Contact insurer within 48 hours (or as required by policy)
3 Provide proof of ownership (receipt, bank statement)
4 Pay excess
5 Receive replacement or repair

For managing the overall cost of technology and household spending, see our household bills guide and money saving tips.