Are you prepared for when disaster strikes?

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Until now, my answer to this question has been an embarrassing “No”. 

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In my brief 25 years of life, I’ve fallen victim to three separate incidents of phone theft, with the latest being so bad it required police intervention.

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Unfortunately, my story is not unique.

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And unlike the movies, the bad guys almost always get away with it. After each time, I and many others must pick up the pieces and move on.

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But that can be easier said than done.

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A 2019 report by Old Mutual Savings & Investment Monitor found that as many as 60% of South Africans have no emergency savings, and only 38% could cope with an emergency expense of R5 000.

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Devices are growing more expensive yearly, making repairing or replacing them costly.

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And to make matters worse, criminals are also aware of the high price your phone might fetch.

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Phone snatching is not a new crime; however, the illicit market for stolen goods has been booming recently.

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Losing your phone is more than just a material loss. 

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Criminals don't just focus on the device itself; they’re equally interested in the valuable personal data stored on the cell phone.

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From viewing where you live, phishing, SIM swaps, tricking others into thinking they’re interacting with you, and compromising your passwords and pins.

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The danger has never been more imminent, and the stakes have never been higher.

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My last encounter introduced a way for me and others to protect themselves against such crime – cell phone insurance.

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Phone insurance plays a crucial role when it comes to stolen phones. 

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Having insurance can potentially save you a significant amount of money and hassle. Depending on your policy, insurance can even help you get a replacement phone of the same or similar model.

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Read on to find out more about the vital role of phone insurance.

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The Unpredictability of Life.  

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With how the world works, theft is unfortunately not the only thing threatening you or your phone.

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Accidents, by their very nature, are unpredictable and can happen in a split second.

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Take dropping your phone, for example. You’d think it’d take falling from a great distance for your device to suffer a severe crack, but alas, even a drop at chair height can cause disastrous effects. 

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There’s also the ever-present risk of water damage.

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Open toilet bowls, overflowing basins, flooded sinks, and even a refreshing afternoon beverage can quickly become your worst nightmare.

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The point is, regardless of how protective the phone’s case is or how cautious you are, there's always a chance of damage due to factors outside your control.

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The same can be said about losing your phone due to theft.

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Cell phones are a common target for thieves who almost always strike swiftly and unexpectedly.

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And theft can still happen despite your best attempt to stay vigilant or use security features like biometric locks or device tracking.

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And if all of that wasn’t enough, your phone could disintegrate without any outside assistance. 

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Mechanical failure means the phone is working well one moment and may be completely unresponsive the next.

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An annual report by the South African Banking Risk Information Centre (SABRIC) released the following alarming findings:

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“During 2020, a significant increase in Bank App fraud as a result of cellphone snatching was recorded,” and “ there have been no reports where the banking app software was compromised to commit the fraud.”

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SABRIC also noted an increase in SIM swops in 2020 with 26.11% (2,684) compared to the previous year at 8% (855), while digital fraud increased to around 33%.

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And according to Statistics South Africa (Stats SA)’s 2018/19 crime report, nearly 70% of personal property theft involved mobile phones.

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Common Unforeseen Smartphone Incidents.

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Despite constant innovation and robust designs, phones are susceptible to unexpected damage.

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Simply put, the world is a danger to your device.

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Alex Fourie, the founder of repair specialist weFix, said two of the leading causes of broken cell phones in South Africa are dropping them in the toilet and sitting on them.

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And just when you think you’re safe, you might want to guess again.

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You might be surprised to learn that most phone damage happens in the comfort of one’s home. 

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Other common incidents that can cause damage or loss are drops, water damage, theft, software and hardware failure, extreme temperatures or simply a literal loss.

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Dropping your phone results in cracked screens, damaged casings, or other internal hardware issues. And misfortune can strike at any moment – during a walk, while exercising or when the phone slips from your grip.

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Exposure to water and other liquids can also cause disastrous effects.

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Anything from dropping your phone in a puddle, getting caught in a rainstorm, or spilling a drink can cause irrevocable damage to your cell phone.

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And over time, a smartphone's physical components and software can fail.

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Software failure includes operating systems crashing, apps not working correctly, or issues with updates, and physical failure consists of the battery (such as unexpected shutdowns or failing to hold a charge) or the touchscreen becoming unresponsive.

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Here’s an example of a few common phone damage incidents:

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• Around 45% of cell phone owners will accidentally damage their phones, with damage mostly happening at home. 

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• Over 38% of consumers will drop their phones out of their hands and onto a hard surface.

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• 28% of people are likely to drop their phones into liquid, with 57% of men responsible for dropping their phones down a toilet. 

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• Another 8% are likely to spill a drink onto their device.

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• 16% of phone damage usually stems from a cracked screen or liquid damage.

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The Financial Implications.

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The financial setback of repairing a damaged phone is often unpredictable, as it largely depends on the severity of the damage and the type of phone. 

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Replacing a smartphone, particularly a high-end model or the latest release from brands like Apple or Samsung, can easily range from a few thousand rands to over R20 000.

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The phone might not be repairable in severe cases, necessitating a replacement. 

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However, repair costs could still be significantly high if the device is repairable due to the need to replace several internal components.

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Costs for fixing hardware failures like malfunctioning cameras, defective batteries, or faulty buttons also vary based on the root of the problem.

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And then there’s the issue of data loss.

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Failure to regularly back up your data means a lost or irreparably damaged phone could result in losing valuable photos, important messages, and other irreplaceable data.

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While recovering this lost data is possible, you’d better believe this service doesn’t come cheap.

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Data recovery work can be divided into hardware and software-related data recoveries.

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Cape Town-based recovery specialist Southbit Data Recovery’s pricelist starts from an affordable R950 for software recovery to a staggering R5 800 for hardware recovery.

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Without insurance or warranty coverage, repairing or replacing a damaged smartphone can cost as much as buying a brand-new one!

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You’ll have to bear the full brunt of the replacement or repair cost.

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Given the sudden and unexpected nature of accidents, this expense could be money you may not have at the drop of a hat.

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On top of that, there's the time, hassle and stress of getting the phone repaired or replaced.

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On the other hand, having your phone insured saves you from suffering the full blow of a faulty phone.

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A small monthly fee, usually starting from less than *R100, ensures protection from various mishaps (cracked screens, water damage, and theft), and when disaster strikes, all you have to worry about is paying an excess. 

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*insurance premiums vary based on different companies and are risk profile dependent.

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The excess amount is often much less than the total cost of repair or replacement, saving you from unexpectedly blowing your budget.

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For example, say your excess is R1 000. 

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Suppose your phone is stolen or damaged to the point of needing to be replaced instead of paying the total cost (which could be over R20,000 for a high-end model). 

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You’ll pay the R1 000 excess; the insurance provider will cover the rest.

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The Role of Phone Insurance.

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If you’re a South African who grew up with a working television set, you’ve probably seen dozens of adverts about insurance in your lifetime.

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So what’s the deal with phone insurance specifically?

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Like other types of insurance, phone insurance is a contract (policy) between you (the policyholder) and the insurance company. 

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You agree to pay a monthly fee known as a premium. 

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In return, the insurance company agrees to cover certain costs associated with unexpected incidents that may damage or result in losing your phone.

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The process starts with choosing a policy most suited to your needs.

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Some plans might only cover certain types of damage (accidental drops, water damage and the like). 

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At the same time, others might also cover theft or loss. 

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Depending on the nature and extent of the damage, your insurer may either repair your phone or replace it with the same or a similar model. 

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Some insurance providers even offer rapid replacement services, delivering a replacement device to you within a few days or as fast as the next day.

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Insurance aims to provide a significant safety net for phone owners, thereby alleviating any financial stress accompanying unexpected damage or loss.

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By now, we’ve established that a lost or damaged phone can fetch a steep repair or replacement price. However, an insured device means the insurance covers a large portion of this financial burden. 

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Instead of having to fork out thousands of rands unexpectedly, you only need to cover the relatively low and affordable excess.

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Insurance offers a level of predictability and security in an otherwise unpredictable situation. 

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Furthermore, the safety net extends beyond finances. 

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Some insurance policies provide rapid replacement services, minimising the disruption caused by a lost or damaged phone, which can affect everything from communication and entertainment to work and navigation. 

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So, cell phone insurance helps you return to your regularly scheduled programme with minimal delay.

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Conclusion

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So the point we’re urgently trying to make is phone insurance offers a strategic safety net.

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With a policy in place, you and your phone are prepared for unpredictable incidents that can damage or result in the loss of your smartphone. 

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The peace of mind of cell phone insurance is an invaluable asset, especially while navigating through life's many uncertainties.

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The relief from potential financial strain and the security of knowing you're prepared for the unexpected emphasises the advantage of investing in phone insurance.

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In essence, phone insurance isn’t just a plan for device protection but an ally in maintaining your daily rhythm and peace of mind!

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Now you've read this insightful piece, we bet you're eager to get your phone insured!

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With Pineapple, you can get your phone insured in just 90 seconds, and premiums start from the low price of **R85.00 per month. 

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What's not to love? 

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Get a quote and cover today at https://www.pineapple.co.za/.

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**Premiums are risk profile dependent.

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Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply. Premium is risk profile dependent.

Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.

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