How to Avoid Phone Insurance Fraud – A Tale of Lost and Found

The portable phone has now become a critical communication tool for many business people. Many can barely live without them if the phone becomes disabled, lost or stolen. Many elect to cover their equipment with cheap phone insurance for their iPhone or BlackBerry to have peace of mind. This is a very popular service that many take advantage of to ensure they can receive a replacement quickly and without much fuss.

However, companies that offer these policies must protect themselves against insurance fraud to stay in business and keep premiums affordable. Because it is so easy to lose a phone through theft or misplacement, insurance carriers need to protect themselves while providing a value added service to their customers.

Here are a few tips if you believe you have misplaced your phone:

After you realize your phone is gone, stay calm!

Retrace your steps from the last time you used the phone.

Of course, try calling it to see if it stuck in the couch cushions or the jacket your wore the other night.

If you believe the phone is not in your home or car, logon to your carrier site and temporarily disable the phone.

Now that you believe you have no recourse but to file a claim, you will need to contact your insurance company, fill out an affidavit for the loss and pay your deductible.

Sometimes, the phone actually turns up a couple days later after you have filed your claim. Many people wonder if they can just return the new phone and get their deductible back. Usually, the answer is no. Once you have filed the claim, you have basically relinquished any rights to the old phone back to the insurance company.

If you try to sell the old phone or give it to someone else to recover your deductible, this could constitute insurance fraud and be a bigger issue than just paying the 125 bucks. Even if you notify the insurance company that you had found the old phone, you will be required to relinquish it and send it back to them for processing.

In summary, it may sound unfair, but once the replacement process is initiated, the insurance provider deserves to be compensated. They have spent their money and resources to send you a new iPhone or BlackBerry and the $125 dollar deductible helps cover those costs, even if you have found your old phone after the fact.