04 September 2014
Smartphone insurance claims are expected to peak across September as Apple launches the iPhone 6 – with consumer demand set to create a notable rise in accidents, losses and thefts.
With top-end devices costing upwards of £500, Nationwide Building Society recommends people insure their mobile phones to mitigate any unfortunate incidents. In July alone, Nationwide received more than 18,000 claims.
Nationwide, which provides worldwide family mobile phone insurance through its market-leading FlexPlus packaged account, has analysed its claims data for the 12 months to the end of July 2014.
Statistics show that more than a third of mobile phone insurance claims were made in relation to an Apple iPhone. They also highlight that claims figures were at their highest in the month after Apple launched the iPhone 5S and 5C last September, indicating that a similar pattern could follow this year.
The top five devices for claims were:
- Apple iPhone 5 (16GB): 16 per cent of claims
- Apple iPhone 4S (16GB): 14 per cent of claims
- Samsung Galaxy S4: 9 per cent of claims
- Samsung Galaxy SIII: 8 per cent of claims
- Apple iPhone 5S (16GB): 7 per cent of claims
The Nationwide data also shows that accidental damage accounted for around 70 per cent of claims, while around one-in-five claims were loss-related. The remainder was for theft.
Phil Smith, Head of Current Accounts at Nationwide, said: “With Apple launching its flagship model, we expect to receive a higher number of claims from customers who have unfortunately damaged, lost or had their device stolen.
“Smartphones can cost several hundreds of pounds and for something we use throughout the day – and night in some cases - it makes sense to insure them, because unfortunately bad things can and do happen. As our data shows, the vast majority of claims we receive are for accidental damage – covering cracked screens, damaged casings and a range of other potential issues that can cost significant amounts to fix in their own right.”
Nationwide’s FlexPlus account pays credit interest of 3% AER on credit balances up to £2,500 and offers a range of benefits, including worldwide family mobile phone insurance, worldwide family travel insurance, UK and EU breakdown cover, all for a monthly fee of £10. (see Notes to Editors for full breakdown).
Notes to editors:
FlexPlus Key Information
Full information about Nationwide's current accounts.
- FlexPlus is open to new and existing customers aged 18 years and over
- Single and joint account options are available
- FlexPlus can be opened and operated online, by telephone and in branch
- FlexPlus is a packaged account offering 3% AER (2.96% gross p.a) on credit balances up to £2,500 (credit interest is not payable on balances over £2,500
- Overdrafts are available to those aged 18 and above, subject to status – for more, see: http://www.nationwide.co.uk/products/current-accounts/flexplus/rates-fees-overdrafts
- It has a £10 per month fee and offers a range of associated benefits (see below)
The package of benefits available with the account, offer a high level of cover as standard, including:
- Worldwide family travel insurance, including winter sports, golf, business and wedding cover as standard
- Worldwide family mobile phone insurance – covering up to £1,000 per handset including smartphones
- Breakdown cover (UK and EU) – home assistance cover for account holder(s) in any private car and anyone permitted to drive the account holder’s car
- Extended warranty – additional 12 months warranty on selected products, starting when the product’s original manufacturer’s warranty expires
- Worldwide card emergency assistance
- Identity theft assistance
Exclusive deals available to reward FlexPlus customers, including:
- Exclusive credit card: The Nationwide Select Credit Card offers commission-free purchases abroad, unlimited cashback on all sterling purchases and introductory offers for purchases and balance transfers. 15.9% APR Representative (variable)
- Access to our lowest personal loan rate: Currently 5.9% APR Representative for loans £7,500 to £14,999 for up to five years
- Exclusive mortgage offers: Exclusive access to our 3 year flexible tracker mortgage and 4 year fixed rate mortgage – see more at http://www.nationwide.co.uk/products/mortgages/our-mortgages/who-we-can-help
- Preferential savings rates: Our Flexclusive savings accounts have been created exclusively for our current account customers
- Exclusive discount on car insurance: £50 off car insurance when buying a new policy (terms and conditions apply)*. With up to 75% no claim discount as well as a courtesy car as standard even if your car is written off or stolen (excludes third party only policies)
FlexPlus customers also have access to Simply Rewards – A reward scheme exclusively for Nationwide debit card and credit card customers, offering discounts on top brands.
About Nationwide Building Society
Nationwide is the world's largest building society as well as the second largest savings and mortgage provider in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.
Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 17,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.
Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 15,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.