New smartphone? This insurance makes sense for you.

The short answer is: It depends. On what? That’s what we’ll reveal in the following. After all, it doesn’t always make sense to get cellphone insurance – but with the right solution, it can even be less expensive than you think.

A new cellphone can easily cost CHF 1,000 or more. Thanks to Netflix, Spotify and Co., a smartphone is no longer just a telephone, but also a TV, music library and computer in one. Yet the more often you carry your cellphone around, the greater the probability that it will be dropped and damaged.

There are various options for insuring your smartphone. 

Option 1: Insuring the phone directly with the retailer
This seems like the simplest option. When you purchase the phone, you buy cellphone insurance at the same time from the same provider. Quick, straightforward, but unfortunately not that cheap. The premiums are relatively high, often in double figures each month. And on top of that there’s usually a deductible in case of a claim.
Conclusion: It’s worth reading the small print and doing your sums.

Option 2: Insure the cellphone through your contents insurance

• Step 1: Against theft
  Your cellphone is insured against theft from your home via your contents insurance, as is the case for all the other items in your home. Select the additional module for “simple theft outside of the home” to ensure your cellphone is also insured against pickpockets when you’re out and about. At Zurich, the deductible of CHF 200 is eliminated after three claim-free years. But note: This means your cellphone is not insured against damage from being dropped or similar mishaps. 
  Conclusion: Practical solution for theft, comprehensive protection but only with the relevant additional module.
• Step 2: Against breakage
  What exactly is cover for accidental damage to electrical equipment? Consider the fact that your device cannot only be stolen, but might also be dropped or fall in your cup of coffee. The additional module for “accidental damage to electrical equipment” on top of your contents insurance will cover these kinds of damages, regardless of whether they were caused by you or somebody else. It’s practical: All electronic devices in your home are insured, including tablets, televisions and laptops – all thanks to integration in the existing contents insurance for a moderate surcharge.
  Conclusion: Low-cost option with comprehensive cover.

In order to calculate the cost of insuring a cellphone, we are using the example of fictional couple Noah and Alina.

• They live in a 4.5-room apartment in the city of Zurich.
• Their household contents are insured for an estimated sum of CHF 105,000.

The annual premium for Zurich contents insurance in this case is currently CHF 354.80 per year, including “simple theft outside”. If the couple wishes to insure their cellphones by means of the additional module for “accidental damage to electrical equipment”, they will pay only CHF 65 more each year. That amounts to CHF 5.45 each month. Not a bad deal, right? In case of damage, each device is covered up to an insured sum of CHF 2,000. The deductible in each case amounts to CHF 200. 

• Cellphone insurance via the retailer is not worth it. Instead, it’s better to integrate the additional module for “accidental damage to electrical equipment” into your contents insurance.
• It makes sense to hold as many insurance policies as possible with the same provider. As an existing customer, you benefit from combination discounts and avoid duplicate coverage.
• With the additional modules for “accidental damage to electrical equipment” and “simple theft outside”, your cellphone is insured against theft, damage and destruction. And all for a low additional premium with comprehensive cover.