Survey by MVNO reveals consumers are not taking up insurance for their handsets, with the majority claiming it’s too expensive
Virgin Media has found that almost three quarters (72 per cent) of British consumers don’t have mobile phone insurance.
This is despite 70 per cent admitting to breaking or losing up to seven handsets in the last decade, according to a survey of 1,000 people by the MVNO.
Nearly two thirds of those questioned wouldn’t consider taking insurance from their network providers, with 60 per cent citing expense as the main reason.
Despite the high number of people losing their phones, 79 per cent said insurance was unnecessary. They were also concerned that certain types of damage may not be covered by their policies, with almost half (47 per cent) of broken phones attributed to water damage, which policies may exclude.
A quarter of those surveyed paid up to £120 a year for insurance without knowing if the handset would be replaced if lost or stolen, with 23 per cent of those with cover claiming they had previously been forced to pay for a replacement handset by their providers.
Virgin found that reasons given for the loss of a handset included the accidental shredding of one by a lawnmower, as well as having a BlackBerry chewed by a race horse.
Virgin Media director of mobile Jamie Heywood (pictured) said: “With smartphones being core to our daily lives and many of the latest devices costing up to £500, it’s shocking to learn that so many consumers aren’t protecting their investments.
“Clearly there’s an opportunity for the mobile industry to transform consumer perception about the importance and value of mobile insurance; it’s time to shake up the market.”