🛡️ Insurance

Gadget Insurance: Do You Actually Need It?

Gadget insurance is worth every penny for some phones and a slow waste of money for others. Here is an honest look at when it makes sense and when it does not.

22 July 2026 · GadgetRank Editorial

Gadget insurance is one of those add-ons that's easy to sign up for at the checkout and never think about again — sometimes worth every penny, sometimes a slow drain on money you'd have been better off keeping. Whether it's genuinely worth it comes down to your specific device, what you're already covered for, and how you'd actually feel about replacing your phone tomorrow if it landed screen-first on a pavement. Here's an honest look at both sides.

Cracked phone screen

The honest answer: it depends on three things

There's no universal yes or no. Whether gadget insurance is worth it for you hinges on three questions: how much your device is worth, what cover you already have, and how comfortably you could absorb the cost of a repair or replacement out of your own pocket. Work through those and the decision usually makes itself.

When gadget insurance genuinely makes sense

Insurance earns its place in a few clear situations:

When you probably don't need it

Just as often, gadget insurance is poor value:

Check what you're already covered for

Before paying for a standalone policy, look at your home contents insurance. Many policies cover your phone — but often only while it's inside your home, and frequently not for accidental damage or loss when you're out and about unless you've added "personal possessions" or "away from home" cover. Two things to check: the single-item limit (an expensive phone may exceed it) and whether accidental damage is included at all. Bear in mind too that claiming on home contents for a cracked screen can push up your premium at renewal, and may carry a higher excess than a dedicated gadget policy would. The goal is simply to avoid paying twice for cover you might already partly have.

Warranty and insurance are not the same thing

A common and costly misunderstanding: people assume the manufacturer warranty that came with their phone means they don't need insurance. It doesn't. A warranty covers faults and manufacturing defects — a battery that fails prematurely, a component that stops working through no fault of your own. It specifically excludes accidental damage: drop your phone and crack the screen, and the warranty won't help you. If you bought refurbished, the cover works differently again — our guide to what "refurbished" actually means and the one on your return rights under UK law explain what a seller warranty does and doesn't include. Insurance and warranty cover different risks — having one doesn't remove the case for the other.

The excess: the number people forget to check

Every gadget policy carries an excess — the amount you pay towards each claim. It's the single most overlooked figure when comparing insurance, and it changes the maths completely. A low monthly premium paired with a high excess can mean that, for a minor repair, you'd pay almost as much out of pocket as if you'd had no insurance at all. When you get a quote, always check the excess alongside the monthly price, and picture a realistic claim — a cracked screen, say — to see what you'd genuinely pay from start to finish.

How GadgetRank fits in

We've added gadget insurance as a comparison category, and we want to be straight about where it currently stands: right now we partner with a single provider, Bimpy — this isn't yet a multi-provider comparison the way our recycling and SIM pages are. We plan to add more insurers over time so you can compare properly across the market; until then, treat our insurance page as one honestly-disclosed option rather than a whole-of-market view.

For context, Bimpy has been insuring phones and tablets since 2011. Its Essential Cover starts from around £4 a month and includes theft, accidental damage, liquid damage, unauthorised use up to £1,000, and worldwide use for up to 90 days a year; Full Cover adds protection against loss on top. Cover starts instantly, extends to immediate family members while they're using the device, and applies to both new and refurbished phones up to 36 months old — so a refurbished phone bought through GadgetRank is generally eligible. As with any policy, check the excess and read exactly what's covered before deciding it's right for you.

Working out if it's worth it for you

Put a rough number on it. Estimate the annual premium plus the excess you'd pay on a realistic claim, then weigh that against your device's current replacement cost and how likely you honestly are to claim. Not sure what your phone is worth today? Our guide to how much your iPhone is worth helps you put a figure on it. If you decide the cover isn't worth it and you'd rather put the money towards an upgrade instead, you can compare refurbished iPhones or sell your current phone to fund the change. Insurance is worth it when it protects against a loss you genuinely couldn't absorb — and not much use when it quietly costs you more than the risk it's covering.

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