With everything exposed to vulnerability, one looks to protect it the best way one can. It takes the form of insurance covers like- home insurance, car insurance, travel insurance, property insurance, etc. This is because insurance helps cover costs and save one’s potential money.

However, according to recent stats by Deloitte, “around one-third of people avoid insurance covers anymore in the UK.” The reason is the alarming interest rates, competitive economy with inflation, and unclaimed insurance coverage. Out of which, around a third quarter of individuals did not make mobile and gadget claims in 10 years.

The shocking statistics get one wondering, “Is gadget insurance helpful?”

The blog explains the gadget insurance and what all it covers. Additionally, it also lists the reasons to get one and things to check while doing so. Let’s begin!

What does gadget insurance imply?

It works just as it sounds. It covers electronic devices like smartphones, laptops, tablets, smartwatches, cameras, ovens, music systems, game consoles, fitness trackers, etc. Unlike other insurance covers like car insurance, gadget insurance is not a legal requirement. It does not restrict you from using it even if you do not have one. Precisely, it covers theft, gadget loss, accidental gadget damage and mechanical failure after the warranty period ends.

Should you get gadget insurance coverage?

You may want a gadget insurance coverage if:

• You own expensive gadgets
• You have multiple gadgets
• You use your gadgets while moving. For example- tablet.
• You have lost your gadgets to robbery earlier

If you can connect with these instances, having gadget insurance may help you.

6 Things to Consider while taking a Gadget insurance

If losing a gadget concerns you, the right insurance cover may help.  However, while taking one, you must consider some parameters. It will help you pick the right one that meets your requirements. 

For example, while taking one check for the “48-hour guarantee replacement” policy feature. It reassures you of getting the new gadget after the timeline. Similarly, there are other things to check.  Read ahead to book the best gadget insurance cover:

1)     Protection against Fraudulent use

Some gadget insurance covers fraudulent usage of stolen gadgets. It is crucial to prevent your financial loss. Thus, make sure that the insurance cover company provides this protection in the insurance.

It safeguards your finances even if you do not have the device. It is important because the thief may get access to the sensitive financial credentials, making your account vulnerable to theft.

In case your financial details get compromised, freeze your accounts quickly. It protects the deceiver from emptying the account. Next, report the respective agency of the theft and request an investigation.

Meanwhile, you may not use your account for the time being. Not using your account for a long time may temporarily impact your credit score.

Most individuals panic in case of emergency cash needs. Do not worry. You may get short-term consolidation loans for a bad credit score. Identify debts with the highest interest rates and consolidate them on the account. It will help you free up some cash and use it for your needs. Moreover, this move also helps reduce overall interest rates on debts. Affordable debts streamline finances.

2)     Check gadgets coverage in home insurance

Some home insurance covers guards everything that a property houses. It includes furniture, antiques, paintings, Television, beds, gadgets, etc. You do not want to spend money if your home policy covers gadgets, too.

However, check whether it covers gadgets indoors only. It is because chances are that the policy may not cover a gadget loss outside the house. If it does not cover gadgets outside the home, gadget insurance may help.

3)     Check whether travel insurance protects gadgets

It is important if you travel often with multiple gadgets. Check whether your travel insurance covers gadgets as a part of the policy. Also, check whether it hosts a limit to the number of gadgets it covers. Some situations require taking smartphones along.

For example – children on a school trip. Does your travel insurance cover insurers the gadget loss or damage in this case? It is important to analyse numerous scenarios and the validity of your travel insurance in each case. It will help you choose the right insurance cover.

4)     Charges on a claim

Most insurance providers charge a fee for one to claim insurance. You must read through the fine print to know the costs per claim. You may spot different fee structures like- £100, £150, and £200, depending on the severity.

Apart from this, most insurance providers may charge a late fee or penalty for a delayed claim. For example, if you do not claim the gadget loss or damage within 30 days, the company charge a penalty. The penalty may be £40-£50 on the claim. Penalties may impact other lifestyle aspects. Thus, check the penalty and costs. Compare these costs with other providers and choose the best.

5)     Extended warranty

Some gadget insurance companies provide extended warranty facilities to individuals. It grants the flexibility to claim the insurance even after you miss the deadline. It protects you from additional penalties or fees. Some companies in the early stage or as an offer may provide this. Thus, you may benefit from this feature.

6)     Identify whether it covers accessories

Gadgets include subordinate accessories like headphones, chargers, power banks, covers, data cables, laptop bags, etc. It will help you avoid saving for such things and regulate your finances towards important life aspects like- debt settlement and car purchase.

However, if you intend to buy new accessories or if the charger does not function efficiently, have sufficient savings. If short of some cash but need a charger urgently, buy it in instalments. Facilities like instalment loans help you buy anything and pay in equal monthly instalments. It is the best way to split the costs and get the accessory instantly.

Bottom line

With rising thefts, improving the security of your gadgets is important. Moreover, gadgets like laptops and smartphones hold sensitive information and passwords that you must not compromise. The insurance cover protects this and helps you ensure financial well-being. Additionally, identify the benefits the cover provides and whether these benefits align with your needs. If yes, it is the right gadget insurance cover for you.