Don’t waste money doubling up on insurance cover

Everyone wants cheaper insurance, but many of us end up wasting money  with double cover that will never pay out if a claim is made.

Insurance is profitable for many companies who earn commission for signing up customers for providers.

In many cases, slick sales people pile on insurances with ‘linked selling’ in the same way as the server at McDonald’s asks if you want fries with your burger.

Saying yes or no to fries is easy – but figuring out whether you have cover for your mobile phone takes a little more thought.

Your home contents insurance may already cover loss or damage to your phone – but this might not include restoring any expensive lost downloads likes books, games or music.

If the phone is damaged or stolen while in your car, then most car insurance policies cover replacing personal possessions.

So when you decide to fork out another £5 or £10 a month to insure a mobile phone, the best option is to take details of the cover and check your other policies to make sure you don’t pay twice for the same cover.

How much money is at stake, and a warning of what a waste signing up can be, is revealed with the current payment protection insurance scandal perpetrated by the banks who siphoned of around £10 billion of insurance premiums from customers who could never expect to receive a claim pay out.

Other common gadget insurances that might never pay a penny include cover for games consoles, personal music players and portable computing equipment.

If you need this type of cover, check out the terms and quotes from two or three providers before signing up – and remember buying in a shop or from an online retailer alongside your gadget purchase is probably limiting your options to a single provider who might not be the best or cheapest.

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