Protect against fraudulent phone use
The main benefit of taking out a dedicated mobile insurance policy is that it'll usually cover you – to varying degrees – for calls made from your phone while you've no control over it. For pay-as-you-go users this isn't such an issue, but contract customers could wind up liable for £100s. Whichever system you use, there are some precautions which can limit your liability:
It's imperative you report your phone's disappearance to your network as soon as it's apparent; it can bar further use within minutes, plus your insurance may be invalidated if you don't report it within 48 hours.
You'll also need a crime reference number for your insurance. To do this, pop into your local police station, or call 101.
Set a credit limit
Some providers will allow you to set a maximum credit limit for calls each month. Go past the limit, and further outgoing calls will be blocked.
Bar international calls
If you don't use your mobile to call abroad from the UK, ask your network to bar international calls. This ought to stop charges getting too out of hand before the phone's reported.