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Is it Worth Insuring Your Gadgets?

Is it worth insuring your gadgets? This is a question that many people ask themselves when they purchase a new phone, laptop, or other electronic device. With the rising costs of these devices, increasingly users consider taking out insurance as a way to protect your investment. But is it really worth it?

In short, the answer depends on several factors, including the cost of the device, the scope of the policy, the likelihood of it being lost, stolen, or damaged, and the cost of the insurance itself.


Cost of the Device

First, let’s consider the cost of the device. If you have invested a significant amount of money in your gadget, it makes sense to protect that investment. For example, if you have purchased a high-end smartphone for £1,000, you will want to ensure that it is covered in case of loss, theft, or damage.

However, if you have purchased a less expensive device, such as an entry level phone for under £100, the cost of insurance may not be worth it. In this case, it may make more sense to simply save the money you would have spent on insurance and use it to purchase a new device if needed.


Assessing the Policy and Cost

Consider the cost of the insurance itself and the level of cover it provides. Some insurance policies may be more expensive than the cost of the device itself, making it not worth it. However, there are also insurance policies available that are reasonably priced and provide good coverage – but it’s a broad market and not all policies offer the same level of cover.

For example, what happens if you make multiple claims?  Does the policy have any limits?  We all have at least one friend who cracks their screen in the first week, and then seems to repeat the experience every few weeks!  For them, a ‘one claim only’ policy would not be appropriate, whereas Dynamo’s Gadget Insurance offers unlimited repairs and replacements, which means that you’ll never go without your gadget.


Assessing the Risk

Of course, before you decide to take out a policy, you’ll want to consider the likelihood of your gadget being lost, stolen, or damaged.

However, even the most careful person has had their phone slip out of their pocket, their child pick up their laptop or a wagging dog tail knock their tablet on to the floor at least once – and some of them were not fortunate enough to not incur damage.

Furthermore, if you frequently use your device in high-risk situations (e.g., in crowded public places, on public transport or during outdoor activities), insurance is probably a good idea.


Which policy to choose

There are a wide range of options to choose from when it comes to insuring your gadgets.  Sometimes banks will offer it on premium accounts, sometimes you can pay a little extra on your home insurance to extend the cover and sometimes you’ll even find it free when purchasing your device, as well as there being a wide range of specialist insurance providers in the sector.

However, this is one sector where the level of cover can vary widely and you will need to look carefully at what level you get for your premium – with a simple screen replacement costing over £100 on some phones, and the value of phones rising year on year, you definitely don’t want to be under-insured.


In conclusion, whether or not it is worth insuring your gadgets depends on several factors, including the cost of the device, the likelihood of it being lost, stolen, or damaged, and the cost of the insurance itself. By considering these factors, you can make an informed decision about whether or not to insure your gadget – but for most users of expensive technology, it’s definitely worth considering – and when considering, don’t just compare quotes because not all policies are equal and finding the right level of cover for you is essential.