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How is Covid-19 affecting smart phone insurance?

Lucie Spraggs's picture

 

The outbreak of the coronavirus in China had a huge impact on the way we live our lives, we’re no longer able to go out. So, what does that mean for what we’re buying and how we’re spending our money. March is normally a big month for the phone industry, with the major annual Mobile World Congress showcase, where many new phones are unveiled for the first time. However, the event was one of the first to be cancelled due to coronavirus.

Sales of new phones have suffered the biggest fall since the invention of the smartphone. Research-firm Strategy Analytics said shipments in March fell by 38% year-on-year.

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How you're paying?  

Of the policies sold in March only 12% were annual policies, with 25% more people choosing to pay in manageable montlhy installments.     

 

     

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Phones are safe! 

Compared to Mar 2019, we've also seen a 57% drop in claims. We're still getting the 'dropped it down the toilet' claims, but theft and loss are down.         


What phones are being insured?

Another trend we have spotted since the outbreak of the corona virus, is a change in the value of devices that are being insured. The biggest change is the drop is in the sale of policies for devices in the middle price bracket (£400 to £1,000). Last year 83% of our policy covered phones or gadget valued in this middle bracket, this year however it has dropped to 70%. There had been an 8% increase in the sale of policies for the most expensive devices (those valued over £1,000) and a 4% increase in the sale of policies covering the more budget devices (valued less than £400).



Our data suggests that we're either opting for the slightly more affordable option of phone (Samsung Galaxy S8), or the top of the line options (like the iPhone 11 Pro Max).


One explanation for the increase in the sale of high value devices, is that people are more and more likely to consider refurbished devices. According to research from CCS Insight, 60 per cent of UK consumers would consider a pre-owned phone or gadget purchase.


Check out our guide to buying refurbished

 
 


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