Gadget insurance is a way to prevent yourself from paying the entire cost of repair out of your pocket in case of any damage. You may think of buying coverage for your gadget, but there are a lot of things to consider.

Gadgets that people insure to lower the repair and replacement cost are:

• Mobile phone
• Kindle
• MP3 player
• Laptop
• Game console
• Tablet or iPad
• Camera
• Smartwatch

Before you decide to insure your gadget, you need to ask yourself the following questions:

• Can you afford to replace the gadgets if they are damaged, lost or stolen?
• Are your gadgets still under warranty?
• Do you more often lose or damage gadgets?
• Are your gadgets covered elsewhere?

When do you need to insure your gadget?

You might want to insure your gadget in the following circumstances:

• Your gadgets are expensive to replace.
• You own several gadgets.
• You use your gadgets during commute
• You have already lost or damaged your gadget many times before.

What does gadget insurance cover?

The policy may vary by insurer, but a typical insurance policy covers the following:

Theft	Expensive gadgets are more likely to be stolen. Expensive mobile phones can be picked up when you are commuting on a crowded bus or train.
Loss	Insurance will protect you from the misplacement of your gadget.
Accidental damage	Accidental damages are inevitable. You can drop your mobile phone. The screen can be cracked or the battery can be damaged. Your insurance will cover these damages.
Mechanical failure	When your gadget conks out after the end of a warranty period, your insurance will cover you.
Liquid damage	Your gadget can be out of order as a result of liquid spills.

There are things not covered by your insurance policy provider, such as:

• Any damage or losses that happened before buying insurance
• Gadgets not listed in your policy
• Damage is under warranty
• Loss or damage because of your carelessness
• The money above the bare minimum your policy covers
• Too old gadgets
• Cosmetic damage, such as snatches or dents
• Internal parts and contents of your gadgets include software, photos, downloads and the like.

How much does the insurance cost you?

The monthly cost of your gadget insurance depends on multiple factors, such as:

• The model
• The level of cover
• Additional features

The average cost of gadget insurance ranges between £1.5 and £15. You might get a discount on your cover if you insure two or more gadgets at a time.

How should you choose the best gadget insurance?

You should consider the following three factors to make the right decision:

• Cover options

Ask yourself what you need to protect your gadget against. Comparison shopping will help you choose an insurance provider based on the coverage they offer and rates. Your insurance coverage will cost you more if it includes everything—theft, damage, loss, and so on.

Your insurance provider will already inform you how much expense your policy can cover in case of theft or damage. You will have to pay any amount above that out of pocket.

• Variable cost

The cost of your insurance will vary depending on factors like:

• how many gadgets do you insure?
• what level of cover do you select
• and the excess that you have to pay

You should try to choose an affordable policy that covers everything you want.

• Maximum cover

The maximum cover is the sum your insurance company can pay you for the repair and refurbishment costs of your damaged gadget. Look for an option that covers the maximum amount because it will prevent you from paying a lot of money out of your pocket. However, if you still need some money, short term loans with no-credit-check can be fruitful.

Check the small print

Read carefully the fine print before you sign the policy. There have been a number of complaints that the expected payout was denied on the grounds that the policy does not cover them. Do not be under the impression that you will be covered for everything. No insurer is bound to reveal everything to you before. All terms and conditions are revealed in the agreement. You should look out for things such as:

• What accidents and kinds of damage are covered?
• Are refurbished items covered?
• How soon you have to report to the police or your insurance provider in case of theft
• Turnaround times for repairs
• Any particular rule about the use of your device
• Ways to claim or any condition you need to meet before claiming

Do you actually need to buy a gadget insurance policy?

You might be already covered. Check if you get some sort of protection from:

• Home insurance

Home insurance often covers your belongings against incidents such as thefts, fire, flood etc. You cannot buy a gadget insurance policy for a gadget if it is already covered under your home insurance.

• Credit card

Credit card companies provide some sort of protection if you have bought a gadget using your credit card. You can receive information about it by checking your policy. Read the small print carefully.

• Warranty

Most gadgets come with at least one year of warranty. It protects you against mechanical damage rather than accidental or theft.

But gadget insurance can protect you against theft and loss. You can buy the insurance at the time of the purchase of a gadget, but prices are likely to be overhyped. Spend some time researching to get more affordable deals.

You should try to be able to bear the full cost of replacement, as your insurance will not cover the entire cost of repair or replacement.

Check if your budget has room to cover the repair and replacement costs. To make room for more cash:

• You can cut back on your expenses.
• Settle your high-interest debt payments.

Consider debt consolidation loans for bad credit in the UK with no guarantor to settle high-interest debts faster. It will help you clear all your current debts in one go. This is how you can save money on interest payments. After the settlement of your debt, you can stow away that money. You will easily be able to bear the replacement or repair cost.

How to claim the gadget insurance

• In the event of theft

Report the theft to the police to receive a crime reference number. Your insurer will not proceed with any formalities without it. You will not be able to make a claim if you are not sure about the time or place where you lost it.

• In the event of a broken gadget

Contact your insurer before a repair agent. You will be asked to fill out the form to provide all details. While receiving a claim, you ought to provide the receipt of the purchase of your gadget.

Is it worth buying gadget insurance?

You will have to consider a number of factors. Insurance is worthwhile only for valuable gadgets. However, you would not need it if it is already covered or protected by your home insurance and credit card.