Mobile phone insurance is ''unneccessary expense for millions''

Consumers are missing out on millions of pounds by paying out for specialist mobile phone insurance, it has been claimed.

Age Concern Insurance Services has calculated that up to 20.5 million people could be paying for the cover unnecessarily since their phones are likely to be included in their home and contents insurance policy.

Malcolm Tarling, the chairman of the Association of British Insurers, said: "It is essential that the 14 million people aged over 50 who own a mobile phone check their household insurance policy to see if that covers mobile phones.

"If they have separate mobile phone insurance, they should check the terms and conditions of that too – there''s no point having two policies to cover the same thing."

According to Age Concern, the average annual premium paid for specialist mobile phone insurance stands at £83.

Any profits accrued by the company go to its parent charity and are used to improve its services and day centres.