Insurance policies

Are you paying premiums on “useless” cell phone insurance policies?

Wendy Knowler targets cellphone providers that allow customers to continue paying for sometimes overlooked policies for older phones – The Money Show

Make sure you’re not paying premiums on “unnecessary” cell phone insurance policies, warns consumer journalist Wendy Knowler.

It refers to the insurance you get when you sign up in the store for your new phone, which is sold by the networks through their brokers.

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She cites the case of an MTN customer who upgraded and decided not to take the insurance offered, but to add their new phone to their existing household insurance.

For the next four years, the customer unknowingly continued to pay premiums on the old phone she no longer used.

She will never be able to claim it because you must have the contractual SIM card in the phone in question.

Wendy Knowler, mainstream journalist

In fact, they don’t send you reminders. If they don’t increase the premium and don’t change insurers, it can last for years!

Wendy Knowler, mainstream journalist

A more recent case involves another MTN customer who canceled her mobile phone contract in March 2021 but was still charged (R470 each month).

Alison says numerous attempts to resolve the issue at the branch and customer service level have failed.

She had even asked MTN to check if these deductions were for insurance.

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As a consumer journalist, Knowler of course managed to get a quick response from MTN.

It turned out that the customer was still paying for two insurance policies for two devices—policies she had forgotten about.

MTN will now reimburse Alison from the month her contract ended.

Since so many phones are passed on to children, parents and employees, I’m pretty sure thousands of these policies are still in place because the original owners of the phones forgot to cancel them, but are totally useless – no possibility of success claim.

Wendy Knowler, mainstream journalist

What I do is add my cell phone, my laptop… to my home insurance. I think it’s a better way to go and I’m sure the premiums are lower.

Wendy Knowler, mainstream journalist

For more details, listen to the conversation below:

This article first appeared on CapeTalk: Are you paying premiums on “useless” cell phone insurance policies?

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