Gadget insurance covers your devices against accidental damage, theft, and breakdown. But is it worth the monthly cost?
What Gadget Insurance Covers
| Cover Type | Standard | Premium |
|---|---|---|
| Accidental damage | Yes | Yes |
| Theft | Yes | Yes |
| Loss | Usually | Yes |
| Breakdown after warranty | No | Yes |
| Liquid damage | Sometimes | Usually |
| Screen repair | Sometimes | Yes |
| Worldwide cover | Sometimes | Usually |
Typical Costs
| Device Value | Monthly Premium | Excess |
|---|---|---|
| £500 (mid-range phone) | £5-£8 | £50-£100 |
| £1,000 (flagship phone) | £10-£15 | £75-£150 |
| £1,500 (MacBook) | £8-£15 | £75-£150 |
| £2,000+ (MacBook Pro) | £12-£20 | £100-£200 |
Cost Over 2 Years
| Scenario | Cost |
|---|---|
| Phone insurance (£10/month for 2 years) | £240 |
| Excess on one claim | £100 |
| Total paid | £340 |
| Phone replacement cost | £500-£1,000 |
If you claim once in 2 years, you pay £340 and get a £500-£1,000 device. That saves £160-£660.
If you don’t claim, you’ve lost £240.
Bank Account Insurance
Many bank accounts include gadget insurance:
| Bank | Account | Cost | Cover |
|---|---|---|---|
| Nationwide | FlexPlus | £13/month | Phone + travel + car breakdown |
| Barclays | Travel Pack | £12/month | Gadgets + travel |
| Lloyds | Club Lloyds | Included | Insurance perks |
| NatWest | Reward Black | Included | With qualifying accounts |
A packaged bank account may be cheaper than standalone gadget insurance, especially if you’d use the other benefits.
Home Contents Extension
Check your home insurance first. Many policies cover gadgets away from home up to £1,000-£2,000.
| Cover | Typical Limit |
|---|---|
| Contents away from home | £1,000-£2,000 |
| Single article limit | £1,000-£1,500 |
| Excess | £50-£100 |
Self-Insurance Strategy
Instead of paying £10-£15/month:
| Month | Save £15 |
|---|---|
| 1 | £15 |
| 6 | £90 |
| 12 | £180 |
| 24 | £360 |
After 24 months, you’ve saved enough to replace most phones. If you don’t break it, you keep the money.
Which Approach Is Best?
| Strategy | Best For |
|---|---|
| Standalone gadget insurance | Expensive devices you can’t afford to replace |
| Packaged bank account | If you’d use travel and breakdown cover too |
| Home contents extension | Low-to-mid-value gadgets |
| Self-insure | Disciplined savers, cheaper devices |
What to Check Before Buying
| Question | Why |
|---|---|
| What’s the excess? | £100+ excess makes small claims pointless |
| Is loss covered? | Theft and damage policies are cheaper but don’t cover losing it |
| Is there a screen repair option? | Cheaper than full replacement |
| Worldwide cover? | Important for travellers |
| Are accessories covered? | Chargers, cases, headphones |
When insurance makes sense
Standalone gadget insurance is rarely the obvious winner, but there are situations where it genuinely pays. If you carry an expensive flagship phone that you cannot afford to replace out of pocket, a policy with a reasonable excess and genuine theft and loss cover gives peace of mind that no amount of careful handling can replace. The same applies to travel: a phone lost or stolen abroad is disruptive and stressful, and worldwide cover that responds quickly can be worth the premium even if you rarely claim.
The key is to match the policy to how you actually use your devices. A weekly commuter who uses a case and a screen protector at home is a much lower risk than a tradesperson who works in wet, dusty environments and carries an unprotected phone. Insurers price on averages, but your personal risk profile may be better or worse than the typical customer — so the decision should reflect your own habits, not a generic rule.
How to decide
Start by checking what cover you already have. Your home contents policy may cover gadgets away from home for £1,000-£2,000, and your bank account may bundle gadget cover with travel and breakdown benefits you would otherwise buy separately. Only if neither of those fits should you price standalone gadget insurance, and even then compare the excess against the device value. Finally, consider the self-insurance route: setting aside the equivalent premium each month builds a replacement fund, and if nothing breaks, the money stays yours.
Bottom Line
Gadget insurance is a personal decision. For a £1,000 phone, it costs about £240 over 2 years plus £100 excess. One claim saves you money. Zero claims means you wasted £240. If you’re careful with devices, self-insure. If you’re accident-prone or have expensive gear, insurance offers peace of mind.