Mobile phone insurance claims increase by 8% since July

Mobile phone insurance claims increase by 8% since July
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New research from YouGov Reports show that 18% of mobile phone insurance holders have attempted to claim on their insurance, up from 10% in July 2012.

The increase in claims coincides with the average value of a handset increasing by more than 20%, with the average value of a device last summer (£139.32) increasing to £167.58 this spring. This corresponds to more insurance claims being made against smartphones. When YouGov last studied the topic in July 2012, 79% of claimants owned smartphones, a figure that rose to 87% in March 2013. At the same time the number of claims on feature phones (13% to 9%) and basic mobile (7% to 4%) fell.

The YouGov research suggests the more affluent a consumer is, the more likely they are to both own insurance and to claim on it, probably because they are the most likely to own the most expensive devices. Almost half (49%) of mobile insurance owners in the AB socio-economic group have made a claim compared to 29% of C1s and 22% of C2DEs.  

The report finds that claimants are most likely to be young with the majority (52%) aged between 25 and 44. By comparison, there is greater resistance among older people to make a claim, with 53% of insurance holders who have not claimed aged over 45 and over.

James McCoy, YouGov Reports Research Director, says: “Because they are central to the lives of so many, smartphones represent a major emotional and financial investment. This makes insurance claims more likely should anything go awry. As smartphones make up more of the mobile market in the UK the number of claims will rise further still, giving insurers more work to do and potentially presenting consumers with higher premiums.”

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