Carphone Warehouse Mobile Phone Insurance Review

Overall Rating

I have had 5 business phones registered with Lifeline insurance for over 3 years - I just recently upgraded my phone and was checking on the level of policy on the other 4 phones when I was told that they had all been cancelled. When I queried it - the manager at the Carphone Warehouse (who along with his staff are absolutely brilliant and no complaints there) rang the insurance who said that one of the phones had had 3 claims within a year. He explained that the claims were because of faults with the phones themselves not through any accident etc - only one of our claims was ever due to theft of the phone!! He then wrote to the managing director explaining that we were loyal business customers and that 3 claims within 3 yrs when we have 5 phones was nothing compared to some.

He was informed that they had reviewed the case and all the phones had had their insurance reinstated. The following week I got two letters saying that the phone insurance had been cancelled by me!!! It seemed these were letters relating to the problem we had sorted out the week before. I changed the policy on my upgraded phone to Complete - then rang a week later to double check that all the phones were insured. The girl even went through every phone and gave me the serial numbers and the type of insurance for my records.

Then I got a letter saying that they couldn't get the Direct Debit for my upgraded phone - so once again I contacted them to be told that they were not renewing my insurance on my upgraded phone!! Heated phone calls resulted in them telling me that the underwriters had exercised their right to cancel my policy and that they would be writing to me in 10 - 14 days with a reason as to why. My argument that they should contact me BEFORE they cancel it to tell me was met with total indifference - if I hadn't called regarding the direct debit matter I would have had no idea that my phone was not insured.

So I am now awaiting the letter - I have four phones still insured with them which I can't move to another phone insurance as it seems other insurances will only take you on within 14 days of acquiring the phone. I am currently without any insurance at all for my current phone. Further reading on phone insurance leads me to believe that this ... ability to exercise their right to cancel ... is the norm - one even said that it would take your money but if you made a claim it would cancel your policy!!!

We would be in a right state if they did that with car insurance - why are we paying out this high insurance when they cancel the policy if you make a claim. I am furious about this - and am seriously considering taking it to the ombudsman once I have found out their reason for cancelling my original insurance.

Members' Comments onEuropa's Review

• Europa on 24th Aug 2007

  Latest update is that they contacted me - apologising profusely and telling me they were reinstating my insurance and as a gesture of goodwill were giving me a months grace on all five phones. Seems the MD got the email after all - they couldn't apologise enough - so it goes to show - ALWAYS GO TO THE TOP.