ProtectYourBubble.com have been advertising practically non-stop for some time now, and other companies offer similar deals. The premise is simple enough: your gadgets are insured against theft, damage, and/or other issues such as mechanical failure. The question remains, however, whether or not that is a viable financial decision.
So let’s look at the numbers; say you have an iPhone 4. Over the year you’re looking at paying about seventy pounds, depending on your provider. For an extra £12 or so, you can add protection in case of loss so your iPhone is protected against that as well as damage and theft. Sounds reasonable, doesn’t it? Certainly when you weigh it up against the cost of replacing your iPhone, which could run into the hundreds.
For a Kindle, with added loss, you’re paying under forty quid for the year. Again, replacing the Kindle will make for a much more expensive proposition. However, Kindle insurance costs £25 for a WiFi model and £30 for a 3G model. If you purchase this from Amazon, your manufacturer’s warranty is extended to three years (from one) and you gain accidental damage cover for those three years, too. This comes out much cheaper in those terms, although obviously theft and loss are not covered. If you get the specialised insurance from Amazon, there is little point in paying £35 per year in case of loss, too. After all, for those three years you’ll be paying more than the price of a new Kindle.
If you have some doubts as to whether or not you should have gadget insurance, consider very carefully whether you are likely to lose or damage your gadgets. Someone who works in an environment where theft is rife, or who is exceedingly clumsy, may well benefit from gadget insurance. That said, plenty of people will be able to cope with the expense of replacing the odd gadget as it will be very rare for them to lose or break one. Count the cost of the insurance versus the potential cost of replacement, and weigh up how important it will be for you to replace the item promptly. A gadget you can’t work or live without will necessitate replacement, whereas a more frivolous item can be left until you save up the pennies required.