Mobile Phone Insurance – Why You Must Have It in 2025?

Everything you do daily is somehow dependent on your phone, from accessing work emails to making payments, or from clicking photos and storing these memories to ordering food and groceries. Everything comes to a standstill if your mobile phone breaks, has liquid damage, or gets stolen. It is like an extension of life, and having insurance for it becomes essential. Let’s understand why having mobile phone insurance in 2025 is the need of the hour.

What is Mobile Phone Insurance? Do You Need It?

It is easy to understand that mobile insurance refers to insuring your mobile device, where you protect it against damage or loss. Imagine awaiting the launch of the latest model, buying it, and then having your expensive phone fall flat on a concrete surface. Now you have a cracked screen, and replacing it is a costly affair. You don’t want to replace it with cheaper ones, and the original screen replacement can be expensive, especially when you've already spent on buying it.

As we all know, this is a festive season, and mega sales are coming online where the mobile phone sales in India shoot up to record-breaking numbers. While this demand is great for both brands and consumers, it brings along certain risks that often get overlooked.

Unauthorized delivery, product mishandling, or receiving a damaged device are real concerns during such high-volume sales events. This is exactly where mobile phone insurance becomes significant. It acts as a financial safety net for customers, ensuring that even if a device is stolen, damaged in transit, or suffers accidental harm soon after purchase, the consumer is protected from bearing the entire loss.

So, if the question is, do you need smartphone insurance, certainly yes! Because you don’t want to bear losses over mobile theft, water damage, or any other accidental damage. Whether for a new or an old phone, buying device protection is smarter than bearing the phone repair costs yourself.

What Mobile Insurance Covers?

Do remember that in most cases, wear and tear due to regular use or lack of maintenance is not covered under a mobile insurance policy. However, you must check the terms and conditions of your mobile phone insurance policy to know what’s covered and what the exclusions are. Your smartphone insurance policy can cover these -

Phone Theft

If your mobile gets stolen or you lose it somewhere, your insurance can cover it. You can claim your mobile phone theft insurance by reporting the incident to your insurer and having the IMEI number of your phone. Some insurers may demand an FIR copy for a stolen mobile phone.

Screen Repair

Please note that in most cases, wear and tear due to regular use or lack of maintenance is not covered under a mobile insurance policy. However, you must check the terms and conditions of your mobile phone insurance policy to know what’s covered and what the exclusions are.

Physical Damage

In addition to screen breakage, your phone can also suffer from other physical damage, such as a broken camera or a dysfunctional SIM tray. Your insurance can cover your phone against physical damage and save you from monetary losses.

Water Damage

You should check with your insurer regarding water or liquid damage, as some basic mobile insurance plans may not cover it. Comprehensive mobile phone insurance plans typically cover damage from water spills, rain, and accidental immersion. However, confirm if there’s any clause that excludes coverage for damages resulting from negligence, such as using the phone during heavy rainfall.

Mechanical Malfunctioning

If your phone starts behaving abruptly, such as displaying a black screen, malfunctioning apps or buttons, charging issues, or sound problems, you can have it fixed and claim insurance for it. Most standard phone insurance plans cover the mechanical issues that occur automatically or due to an accident. However, they may not cover damages due to negligence.

Additionally, you can consider add-ons or plans with higher premiums that offer extra coverage. Some insurance companies offer plans that cover mobile accessories or unauthorized usage protection. Similarly, some plans cover multiple devices or provide loss protection across borders, which is best suited for international travelers.

What Mobile Insurance Does Not Cover - The Exclusions

Insurers have certain exclusions, covering damage under specific conditions that they will not cover. They are -

Any intentional damage or deliberate harm you cause to your phone will be your responsibility. Your insurers, if not convinced of the cause of damage as accidental, may not cover it.

Just like the ‘intention to harm the mobile’, your ‘negligence’ will also not be borne by the insurer. It is up to you to take care of your mobile and keep it maintained.

It is necessary to report the incident of mobile phone theft, water damage, or any physical damage to your insurer immediately. If you delay in reporting and make the claim later, they may deny your claim.

As discussed above, mobile liquid damage coverage has certain limitations, so check the inclusions and exclusions of mobile water damage in your insurance policy.

If you are buying insurance for an old phone, clearly declare any pre-existing conditions, such as a non-functional front camera or malfunctioning side buttons. Otherwise, your insurers may reject your false claims.

How to Buy the Best Mobile Insurance in 2025?

Now, when you depend on your smartphone for everything you do, you cannot ignore the importance of having insurance for it. And why not go for the best one that provides you with optimum coverage? Here are a few key points to consider when purchasing mobile phone insurance in 2025.
Review the policies offered by different insurers and compare their plans. See what mobile damages they include under their insurance policy and what they don’t cover.

Check the premium you will pay and see if it's an affordable phone insurance plan per your budget. Compare the prices of various insurers and assess their coverage against each other. Pick the best mobile phone insurance that provides maximum coverage at a lower cost.
Check for any deductibles, which means this is the amount you will bear if there is any damage, not your insurer. Deductibles mean a lower premium.

Why Buying Mobile Insurance is a Must in 2025?

When your smartphone is like a mini-computer, an entertainment box, and your safe locker for photos, documents, banking, investments, and more, insurance is non-negotiable. Smartphones are getting expensive, and their repairs are even more so. Moreover, in times of cybersecurity threats, some insurers provide coverage against hacking and data breaches, which offers you peace of mind.
So, investing in mobile insurance is not just needful, but rather wise. Make an informed decision for your smartphone and purchase the best mobile phone insurance in 2025.

FAQs