Smartphone users without insurance out of pocket
There's little doubt that as a nation, we are truly addicted to our smartphones. Leading mobile reseller SmartFoneStore.com has announced the results of a new survey revealing why we are increasingly opting out of mobile insurance and how that is often leaving consumers out of pocket if their phone is lost or damaged.
Lack of insurance really costsInterestingly, of those consumers that have insured their mobiles, only a quarter are covered for accidental damage or loss – two of the most common grievances for smartphone owners.
Unreasonable costs (40 percent) and doubt over ambiguous policy wording (20 percent) were the primary reasons for consumers opting out of smartphone insurance. However, when a replacement is needed, 82 percent of respondents feel that current offline prices – often in excess of £500 – are simply too high, and have to settle for a basic handset instead.
"They may feel that, given the relatively large investment of a two year contract, insurance costs would stretch budgets beyond their allowance. But when something goes wrong, the cost of replacement can quickly dwarf the original price of the insurance, which is why many people have to make do with inferior handset while still forking out for the expensive smartphone tariff."
Style over substanceThe survey also found that when buying a new phone, almost 60 percent of consumers prioritise handset model over price plan, mobile operator and contract length.
The respondents also highlighted the discrepancies between advertised costs and actual monthly bills, for instance the average monthly cost as advertised by operators was approximately £25, whereas the average monthly bill was closer to £40 once additional calls, data and SMS were taken into account, with almost a fifth of respondents reporting monthly bills in excess of £60.
24 months 'too long'Over 80 percent of survey respondents said they thought that 24 month contracts were too long, but didn't feel there was much of an alternative. 37 percent admitted fears over whether a used smartphone (like those sold by SmartFoneStore.com) would work properly.
"The survey proves that price plan and operator come second to handset model for consumers. With that in mind, a top-end handset at a fraction of the 'as new' price, along with a cheaper SIM-only contract seems like the perfect marriage."