Be sure about your mobile insurance

Odds on that you have at some point lost a mobile phone. And with our handsets playing an ever greater role in our lives, many of us opt to take out insurance. In 2006 just 3 percent of mobile users insured their handsets, but now that figure has risen to almost a third.

But it's an expensive and not particularly straightforward business and here's why. A smartphone like the iPhone 4 with 16 GB costs £15 a month to insure. If you lose it, there's a flat fee of £75 to replace it. Lose it again, and the fee rises to £100. You could be paying at least half the cost of a new handset in just one year. This kind of insurance is also chock-filled with exceptions. For instance, you may not be covered for calls made while the device is lost or stolen.

Many are in the position of their phone being covered by their home insurance. But the cost of making a claim often costs more than a replacement handset, as the insurer will then hike your premiums.

Currently the best deal is to take out a stand-alone policy. You can tailor-make your policy, and the premiums are cheaper too. Protect Your Bubble has annual cover for an iPhone 4 32GB costing just £5.99 a month.

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