Mobile Phone Consumers at risk after the BIBA fails to tell the whole truth

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 17, 2005 -- It is amazing how some organizations will go to press and at the same time give inacurate advice to the consumer, and in the same instant frighten them. The BIBA (British Insurance Brokers Association) have made statements which have been broadcast and widely publicised in the papers and internet with regard to mobile phone insurance both in September and October this year and that the insinuation that specialist mobile phone insurance companies like www.insure-my-mobile.com and others, provide insurance cover which is more expensive than the mobile itself is far from the truth.

The BIBA by publicising their views without making public the full facts is putting consumers at risk. We have witnessed full cover insurance drop by 90% after the broadcast, and publication in major newspapers both on the street and internet. The BIBA have failed to at least obtain the full facts or talk to those companies which sell Mobile phone insurance for their views. The BIBA facts were not fully correct, and should not have made a generalised statement encompassing all companies, as all mobile phone companies are not the same, also by the BIBA�s wording, they have frightened consumers away from insurance all together � not a good move for the consumer.

There are some insurance companies we would agree which have poor policy's which can cost more than the phone, but they should have taken into account and at least mentioned those companies who do give full cover at good cost. This confusing statement does nothing to help the consumer. People we have spoken to are not bothering to cover their mobiles now and thus risk the serious consequences.

The question was asked of some of these consumers �Are you at least going to cover your mobile on household insurance if you have been put off by the BIBA�s press releases� The answer we received time and again was an astounding NO. Consumers stated reasons which ranged from having to pay a higher excess on their house insurance than mobile policy�s, also that many house insurance companies, would not cover the phone when the mobile was away from the home. We have a clearer picture to give the consumer here if nothing else to ensure that the consumer still can if they wish feel safe in protecting their mobiles, rather than risk the chance of expensive costs by not bothering.

The report from the British Insurance Brokers' Association (BIBA) is clearly wrong and when you do the math�s, this research was completely misfounded

One of the key criticisms that the report leveled at Mobile Phone Insurance companies was that many do not cover loss. That is one of our main selling points! Why a policy�s such as ours was not included we do not know, especially given that we are so widely publicised on the web. Maybe a researcher didn't do their homework or indeed they want to promote their own brokers, however the consumer should not be frightened off insurance but have all the facts so that they may judge for themselves...

The principle problem with phones and insurance is that most people are not aware of the replacement cost - ie the value - of their phone. Because many people are given the phone free, or at a highly discounted rate, they do not realise how much they actually cost without the contract.

For example, the highly popular Samsung D500 is about �200. The now even more popular Sony Ericsson W800i is about �400 to buy.

Sensibly, if you have a cheap phone (eg only worth �100) and an expensive insurance premium (ie �8 to �10 per month), then obviously, this is not good value. A year's premium would cost you �120 ie more than the value of the phone.

However, if you get an effective policy, such as the www.insure-my-mobile.com cover, it represents good value for money. Take for example, the Samsung D500. It is worth about �200. It goes on the Standard policy at �5.88, covering them for the full insure-my-mobile cover (loss, theft, water damage etc). A year�s cover is then �70 or 19p a day. That means that the customer would have to keep their phone and keep insuring it for 3 YEARS before it become uneconomical to insure! How many people have their phones for 3 years? Not that many in today�s market! Most upgrade to the latest phone each year or at least once every 2 years.

This means that the customer is cost effectively protecting themselves.

Another major flaw with this report is that it suggested that a customer might be better suited to add their phone to their home insurance. There are 3 main reasons why that would be singularly unwise;

1. Usually home insurance policies have a FAR higher excess than any mobile insurance policy, often �100 - �150 plus for the first claim.

2. If you make a (albeit relatively small) claim for your mobile on your house insurance, what is going to happen to your house insurance premium? It will go through the roof next year. Now who might benefit from your house insurance going up next year? Or could it be the Insurance Broker members �

3. How long would you comfortably be without your phone? You might expect it to be a long while for your house insurance to process a claim. From personal experience, the last time a family member of mine had to claim, it took WEEKS. Most customers cannot accept to wait weeks for their phone to be replaced. www.Insure-my-mobile.com value Insurance processes claims within 48 hours. Are household insurers i.e. BIBA Brokers experts at replacing phones? Would you go to get your car fixed at your bus station? Probably not.

Customers should always make their own informed decision. If you have a cheap, old phone, it would not be worth insuring (we would not insure any phone older than 6 months). However, if you have a phone that is less than 6 months old, and worth over �100 (as most are to replace) then a high quality, low-cost policy such as the www.Insure-my-mobile.com Insurance, is a cost effective method to get your phone protected

The consumers unfortunately are now at risk and a proper balanced report is needed urgently to be published, not for the benefit of insurance companies like us, but for the sake of the consumer, who have been misguided by an organization that should know better, with little thought for the reaction of the consumers to its flawed report.

We hope that at least that this article will go some way to redress the balance, giving the consumer the full facts, and the choice of how they insure their mobile phone�however our advice to consumers is which ever way you choose to do it, make sure that you ARE insured, look at the policy�s first before you buy and get the most cover possible.


Chris Caudle MD
Insure-my-Mobile.com

More information can be found online at http://www.insure-my-mobile.com

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