Tesco is offering free mobile phone insurance on all the contract phones it sells. Oddly the offer doesn't cover its own phone network customers.
The deal comes from Tesco Phone Shop, which sells handsets for all major networks, rather than Tesco Mobile itself. Customers on the Tesco Mobile network are excluded from the offer, while the iPhone is also not eligible at the moment.
Tesco is running a limited time trial and will only offer the insurance to people buying a phone before July 14, though each policy will then run for 12 months. The company will use the trial to decide whether to make the deal permanent and possible expand it to the iPhone.
Unlike some policies, there is a limit of two claims during the year. There is also a variable excess of £25, £50 or £75 depending on what model handset is covered.
The insurance covers loss, theft and both accidental and malicious damage. This includes damage caused by liquids, which is often excluded from insurance policies and guarantees. Customers making a valid claim will get an identical model replacement.
As part of the policy, customers must install recovery software that can block and locate a phone once it is reported missing.