Did you buy a new cell phone and decide to insure it? Here are some crucial tips to know when getting ATT insurance for your cell phone.
The importance of proof of ownership
When insuring a mobile or another device (computer, tablet), proof of ownership is vital as it helps insurers identify fraudulent claims. In the insurance world, “proof of ownership” is any kind of document that provides information about an item that has been damaged or lost and now needs to be replaced. If you’re buying a gift for someone and the device is in their name, the person you gave it to won’t be able to make a claim because they don’t have proof of ownership. What you need to do is transfer ownership once the gift is given, so the person using the device will have no problem making a claim. If you are buying something for yourself, it is vital to have proof of ownership, as it shows your insurance company that the device is yours. Without proof, you cannot make a claim. Proof of ownership can be a receipt, confirmation of your contract from your network provider, or a gift receipt.
Why does the age of my device matter?
Be aware of the age of the device when you buy cell phone insurance; some insurance providers do not offer insurance for devices that are more than a year old; others do; just check the details.
Am I covered for the actual value of my device and multiple claims?
Some cell phone insurance providers only cover you for a certain number of claims or a certain total value in any policy year.
So, let’s see an example. You insured your cell phone, which you bought for $30,000, with a provider that only offers claims up to a limit of $25,000 in any year of insurance. If you file a claim for a lost or stolen device, you can only claim up to $25,000, and you will also have to pay the excess of your claim.
In another example, let’s say you still have your phone, and you make a loss claim followed by an accidental damage claim. Are you looking to make a third claim? You may not be able to claim because you have reached your claim limits.
First, false insurance claims are illegal. They can impact your life and career, making it almost impossible to buy insurance in the future, and can lead to a criminal record. When someone commits insurance fraud, everyone suffers. Committing fraud harms everyone: yourself, your family, and your friends. Insurers have to spend more time-fighting fraud, premiums go up, and everyone loses.
The types of mobile device insurance fraud are:
Claim for a device already lost, stolen, or damaged
Claim a device that doesn’t exist
Claim for a loss that has not occurred
If you are found guilty of insurance fraud, the punishment can be as severe as a prison sentence; it really isn’t worth the risk.
What does cell phone insurance cover?
There is a choice of cell phone insurance coverage, depending on your needs. The coverages take care of your cell phone abroad in case of breakdown, loss, theft, fraudulent use, and accidental damage (yes, that includes broken screens and dropping your mobile device/device down the toilet).
Accidental damage: Cracks in the screen, dents in the corners, etc.
Accessory Cover: It’s not just your device that’s covered
Liquid damage: Includes toilet drops, coffee spills, and puddles as well
Loss or Theft: In case you accidentally lose your cell phone or it is stolen.