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Did you consider buying iPhone insurance from the high street store when you bought your iPhone, but decided it was very expensive? Well you are not alone. In the UK, only around 50% of new iPhone contract agreements are sold complete with an iPhone insurance policy, which would insure the most part of the replacement cost of an iPhone in the event of theft or accidental damage.
There are probably a couple of reasons why the uptake on protection policies are quite low for the iPhone, one of which is the monthly expense of the insurance product alone, secondly, the consumer is not really aware of the real value of the iPhone or its replacement value.
If we take a closer look at the monthly price of iPhone insurance cover, it is clear to determine that the price will vary significantly between stores. There are several reasons why there is such a large fluctuation in price of insurance plan. Firstly, the consumer is a captive ordinance for the sales agent in a mobile phone shop. The sales staff will not have to work too hard to sell you the iPhone, as you have decided you want one prior to walking into the mobile shop. So, just when they have finished signing you up for your new agreement, they try and talk you into purchasing iPhone insurance too, but by this time the customer may have just decided into shelling out a little more than they had intended.
Another reason for a low take up on the iPhone insurance product could simply be that the customer is not really aware of just how much it would cost to replace an iPhone if it happened to be stolen or suffer accidental damage. The thing is, when the iPhone dealer gives the customer a free handset, it is subsidised by the network provider, such as Vodafone, as they have been guaranteed at least 12 months of your business. One thing is certain though, they will not provide you with a second free mobile phone until the end of your contract, and the replacement will be down to you.
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