Is Phone Insurance Worth It? When Yes, When No (2026)

Phone insurance is worth having for devices costing around €500 to €800 or more, for heavy everyday use, and when contents insurance doesn't cover theft. For cheaper smartphones or careful users, it's often unnecessary. What matters is the scope of cover, the deductible, how market value is calculated, and whether theft is even covered at all.

When is phone insurance actually worth it?

The cost-benefit math for an €800 device

Whether phone insurance is worth it depends directly on the device's value. Phone insurance costs between 10 and 30 percent of the sale price per year [1]. For an €800 Android phone, that means €80 to €240 in annual premiums. The rule of thumb: the annual premium should be no more than 10% of the purchase price — so for €800, no more than €80 a year. Anyone paying more is permanently overpaying for the insurance. Tariffs from €2.45 a month are available on the market [1], but theft cover and worldwide protection cost extra.

From what phone price does cover pay off?

For smartphones costing €500 or more, insurance is generally advisable. A screen repair for a current iPhone 17 Pro costs Apple customers over €400, and for the Galaxy S26 Ultra over €350 [1]. For cheaper devices under €300, the risk is usually manageable to bear yourself. Anyone with a mid-range phone worth €400 to €600 should weigh the premium specifically against the most likely repair costs — not against the worst case. Cheap devices are rarely worth insuring [2].

Usage behavior as a second deciding factor

Anyone who's out and about daily, travels a lot, or uses their smartphone for work carries a statistically higher risk of damage. Heavy users get more value out of a policy than careful occasional users. Anyone who mainly uses the device at home can rely on contents insurance — with important limitations, covered in section 4. In short: usage intensity and device value together decide. Either one alone isn't enough.

What phone insurance actually covers

Standard cover: drops, screens, water, electronics

Covered damage includes, in almost all tariffs, drop, breakage, liquid and weather damage, to the extent that normal use of the device is impaired [2]. On top of that come damage from fire, explosion, power surge, short circuit and induction, as well as operating errors. A cracked screen from a drop is the most common claim. It's standard cover everywhere. Vandalism and sabotage by third parties are also typically included.

Theft cover: optional and tied to strict conditions

Theft isn't automatically included in most tariffs, but can be added for an extra fee [2]. And even then, restrictions apply: simple pickpocketing is often not reimbursed. Typically covered are burglary theft, robbery and looting — that is, cases involving force or theft from locked premises. Hepster's phone insurance with theft cover covers theft, burglary theft, robbery and looting; the theft must be reported to the police within 24 hours. Anyone wanting to insure a smartphone against water damage and theft should check exactly which types of theft the chosen tariff includes.

Battery wear and other special benefits

Battery wear is a special benefit that not all tariffs include. Under Hepster's phone insurance, cover for battery wear applies at the earliest after 12 months, and up to a maximum device age of 5 years — and only if the battery still delivers a maximum of 20% of the manufacturer's rated capacity. Unlawfully incurred call charges after an insured theft are covered up to €100. Not covered are cosmetic blemishes, scratches, separately purchased accessories and software.

Source: Hepster product information sheet (andsafe AG). Deductible €35–150 depending on the tariff.

What phone insurance doesn't cover — the most important exclusions

Losing, forgetting, leaving it behind: no cover

Exclusions are the most common reason claims are refused. Damage from leaving the device behind, forgetting it, or losing it is generally not covered. Leaving the phone on a café table and it's gone — not a case for the insurance. Grossly negligent conduct is also excluded. Anyone who leaves their device unattended even briefly risks not getting compensation [5].

Pre-existing damage, the mandatory screen check, and accessories

Damage that already existed before the contract was concluded is generally excluded. Under Hepster's phone insurance, a screen check must be carried out within 14 days of the contract being concluded — without it, there's no cover. If the screen check isn't passed, screen damage isn't covered. Accessories, software and consumables purchased separately or afterward are also not covered.

Nighttime clauses and hidden conditions

Some tariffs on the market include so-called nighttime clauses: only thefts between 6 a.m. and 10 p.m. are reimbursed [5]. Anyone robbed at night gets nothing. Many policyholders receive no compensation despite having a policy [4]. Before signing up, it's worth reading the fine print carefully — especially clauses on duty of supervision, reporting deadlines, and burden of proof.

Contents insurance as an alternative — know the coverage gaps

What contents insurance covers for a phone

Contents insurance protects the smartphone against fire, water from pipes, burglary theft in the home, and vandalism [1]. Within your own four walls, the device is thus often already covered — at no extra cost. A clear advantage for users who mainly use the device at home. Anyone who additionally wants to insure digital risks privately will find a sensible complement in supplementary cyber policies.

The central coverage gap: on the go and while traveling

Simple theft on the go — for example pickpocketing — is usually not covered by contents insurance [1]. A phone in a jacket pocket that gets stolen while traveling: not a contents insurance case. Anyone who's frequently out and about or travels a lot has a real gap here. A separate smartphone insurance policy for theft abroad closes exactly this gap. Private liability insurance also doesn't pay out for self-inflicted damage to your own phone [2].

When contents insurance is enough

Anyone with a device under €400, who mainly uses it at home and already has good contents insurance with an away-from-home cover add-on, doesn't need separate phone insurance. The away-from-home add-on covers damage outside the home in some tariffs too — but often only to a limited extent and with sub-limits. Double cover costs unnecessary money. Before taking out phone insurance, it's always worth checking your existing contents policy first.

Market value, replacement value and deductible — the cost math in detail

Market-value reimbursement: what's left after a year

Market-value reimbursement is the standard case. Many insurers use market-value tables: still 80% after six months, only 60% of the purchase price after a year [3]. Android devices lose over 30% of their value on average after a year, Apple devices around 14% [3]. Under Hepster's phone insurance, in the event of total loss the market value is reimbursed, up to the agreed sum insured at most. Anyone wanting replacement-value reimbursement has to specifically look for it — and pay more.

Deductible: fixed amount or percentage

Deductibles vary considerably. Depending on the tariff and provider, €35 to €150 applies per claim. For theft, percentages of the purchase price are common — 10 to 20% is widespread in the market. Tariffs with no deductible are more expensive but cover the full damage. Anyone with two claims a year — the maximum at Hepster — paying €100 deductible each time loses an extra €200 on top of the premium. The math has to work out.

Watch minimum terms and notice periods

Most tariffs have a minimum contract term of 12 or even 24 months [3]. Hepster's phone insurance offers monthly and annual subscriptions: the monthly subscription has a minimum term of 12 months with a notice period of 3 business days before the end of the insurance period. The annual subscription renews automatically from year to year with the same notice period. Anyone checking whether insurance is worthwhile for cheaper devices too should also factor the term commitment into the calculation.

Hepster phone insurance at a glance — two tariff levels

Tariff level 1: cover without theft

Hepster phone insurance without theft cover protects against the financial consequences of the phone's destruction and damage. Covered are new, refurbished and used phones, including original accessories included in the box. Requirement: a screen check must be carried out within 14 days of the contract being concluded, and an original receipt from an authorized dealer must be available. Cover applies worldwide. Services are delivered within Germany.

Tariff level 2: cover with theft, robbery and looting

The extended tariff level additionally covers damage from theft, burglary theft, robbery and looting. In addition, unlawfully incurred call charges after an insured theft are covered up to €100. Hepster activates cover directly after device registration — no waiting. For both tariff levels: a maximum of 2 claims per year, compensation for partial loss up to the market value, and for total loss up to the agreed sum insured. The sum insured can never be higher than the original purchase price.

Signing up, reporting claims and managing the contract

Signing up, reporting claims and managing the contract all happen digitally. Claims are reported via the web portal or by email to MOIN Servicegesellschaft mbH. In the case of a repair, a cost estimate from an authorized electronics shop must be obtained and approved in advance. Criminal offenses connected with a claim must be reported to the police within 24 hours. A standard requirement — and crucial to not losing your claim.

Phone insurance comparison 2026 — what to look for when signing up

The five most important comparison criteria

When comparing phone insurance, five criteria matter: first, the scope of cover (which damage is actually insured?); second, the type of reimbursement (market value or replacement value?); third, the deductible (fixed amount or percentage?); fourth, theft cover (included or extra, and which types of theft?); and fifth, the term and flexibility. Stiftung Warentest compared 19 phone insurance policies [2] — the differences in theft conditions and deductibles are considerable.

Insuring refurbished and used devices

Not all providers insure used or refurbished smartphones. Hepster insures new, refurbished and used phones — with no age limit, provided the device is fully functional and passes the screen check. That's a clear advantage over providers that only accept new devices. Anyone who owns a refurbished iPhone or Android device will find here one of the few providers with genuine cover.

nextsure as an independent point of contact for insurance comparison

nextsure operates as an independent insurance broker (§ 34d(1) GewO, registration number D-4ZF9-E88H6-53) and curates tariffs for insurance for electronic devices and specialty products. Comparison, advice and taking out cover online are free for end customers. Compensation comes exclusively from commissions paid by insurers. Anyone wanting to insure an €800 Android phone gets curated tariffs from nextsure instead of confusing tariff lists.