Do I need Gadget Cover?

Gillian Cooper
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If you’ve ever purchased a new gadget, chances are you’ve been caught off-guard as the salesperson suddenly asks if you’d like to pay more in order to protect the product you’ve just spent your hard-earned cash on.
Your first instinct may be to politely refuse, backing slowly out of the shop with your prize in hand – and honestly, you wouldn’t be entirely wrong.

Immediately accepting the first offer may leave you at risk of paying high premiums. As with so many other purchases, it’s important to shop around to make sure you find a deal best suited to you. So, walk out of that shop with your head held high and your brand new gadget, then go ask yourself the following questions:

If you answered ‘yes’ to any of the above, you might want to consider finding a gadget insurance policy to avoid losing money in the long run.

Naturally, you may be resting assured that your new device is covered by your home insurance. While this might be the case, it’s still worth checking your cover to confirm it sufficiently meets your needs.
For example, your gadget may only be covered if stolen from your home in the event of a burglary. Your policy may offer the option to cover yourself for accidental damage within your home, or even to insure items (including your phone) are protected outside of the house. However, it’s worth considering the impact that any potential claim may have on the premiums you currently pay for home insurance. Any claims for your gadgets could increase your premiums when it comes time to renew your policy. You may also want to consider the excess you have to pay when claiming – this may come at a higher cost than with a separate insurance policy. Another factor is the speed with which you need your gadget replaced. A claim on your home insurance policy could take much longer so if a speedy replacement is required, checking the small print on your policy could save you added stress!

Another misconception that could have you in a pickle when it comes to replacing your phone is assuming you are automatically covered through your bank account. Again, while many banks offer packaged bank accounts; including Nationwide, Halifax and the Co-Op.

If you intend to insure your device through your bank account, it’s crucial that you find out whether this even applies to your account. With packaged bank accounts, a monthly fee is often applied, and while it can be a relatively cheap way to insure your device, the level of cover is usually very basic.
As with insuring through your contents or home insurance the same issues apply, and the same question should be asked - is this the right cover for me?

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