Myths Debunked: Purchasing insurance for refurbished devices

Protect Your Gadget, the independent gadget insurance comparison site, is warning those looking to insure a refurbished smartphone this festive season isn’t as simple as insuring a new handset.

Planning on putting a second-hand mobile phone under the tree for your teen this year? Gadget insurance comparison site gives tips on following simple steps to get it properly insured

As the introduction of new smartphones also increases the cost with every new addition, it’s no surprise that the refurbished mobile phone market is booming. In fact, one in ten mobile phones now sold are second hand or refurbished and during quarter three of 2017 the top three selling phones globally were those manufactured in 2016.*

Understandably, many parents won’t want to shell out £700 for their child’s mobile phone and so are looking to the second-hand marketplace for their Christmas purchase.

Refurbished phones still aren’t cheap, which is why many people are choosing to insure their second-hand handsets. But insuring a refurbished phone is different to insuring a brand-new smartphone.  

Eleana Martyn, of gadget insurance comparison site, Protect Your Gadget, has some handy tips for parents or grandparents who are looking to insure a nearly-new mobile phone this Christmas:

  • Make sure you buy through an approved source

Most insurance providers will only cover phones if they have been bought through the network provider or manufacturer. This is because buying a smartphone through a non-authorised reseller is considered riskier in terms of the condition of the phone. So unless you are planning to buy directly from either of these sources, you will struggle to find insurance cover at all.

  • Check your gadget insurance policy for family cover

Some insurers offer to cover all gadgets owned by your immediate family which means you can put all your gadgets under one insurer, but some policies may require all gadgets to only be used by over 18s, so again, it’s important to check the policy wording before buying for a younger family member.

  • Timing is everything

Insurers don’t like smartphones which were bought more than a year ago. These timings vary between insurance providers so it’s important that you check the limitations of your policy to ensure that you have the right cover in place. Some may ask for a proof of purchase at the point of sale or when you make a claim, so be sure to ask for a receipt from the network provider or manufacturer.

  • Don’t rely on your home or travel insurance

“I’m covered with home contents insurance”, you cry. But beware, these policies will not provide the same level of cover as a standalone gadget insurance policy. For example, some home insurance policies don’t offer accidental cover, and most won’t include cover away from home.

Likewise, with travel insurance, some may not cover any electronic devices at all or only offer up to a certain amount to cover them, for example, one policy provided £500 cover for all devices. It’s also very unlikely a second hand device would be covered, especially without a proof of purchase.

Eleana continued: “When it comes to buying insurance for a refurbished phone it’s really important to research the market thoroughly and use websites such as ours at ProtectYourGadget.com to compare policies to make sure the handset you have bought is covered.

“Most adults have dropped their mobile at some point – I know I have – and when it comes to buying one for your child or grandchild, it is probably even more important to get adequate coverage. Policies which cover for accident, loss and theft, are available for around £7.50 a month.**”

Gadget insurance is designed to protect against loss or damage to your digital devices. From e-Readers to tablets, sat navs to smart watches, you can find a cost-effective policy which suits your needs through Protect Your Gadget.