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You might think this would be simple, but how your phone gets replaced can vary between companies.

Most will deliver a replacement phone to you. But you're NOT guaranteed a new phone or even the same model - it depends what's in stock. If the insurer has your type of phone, you'll most probably receive a refurbished/reconditioned phone or an alternative 'equivalent' model (taking into account its age and condition).

Alternatively, insurers may choose to give you a cash equivalent. As a rule, if it can't get you the same phone as your original, it should call you to discuss how you'd prefer to settle the claim.

If your phone is damaged and not lost or stolen, then if you're covered insurers will try to repair it rather than simply give you a replacement, so get set to be mobile-less for some time.

The 'excess' is the amount you'll have to pay towards the cost of a new phone or repairs before the insurer pays the rest. If the cost of repair or replacement is £100, and you have a £25 excess, the insurer will only pay £75.

Unlike, say, home or car insurance - where you will normally receive the amount of the claim, less the excess - mobile insurance claims are dealt with differently. You'll usually need to send the excess payment to the insurer before the claim will be settled.

Excesses vary depending on the phone, the type of claim and if you've made a previous claim with that provider. So don't presume the same excess always applies. It may increase for subsequent claims, or if you need to claim while abroad.

If you usually pay by instalments, some standalone insurers will ask for the remainder of the premium to be paid in full before they will settle a claim.

This differs massively from other insurance policies, but it doesn't affect your ability to claim on the policy for the rest of the year - if you lost your phone again, you could still claim (though some limit you to two claims per year). It's important to check though, as if this is hard for you to budget for, self-insuring may be better.

It isn't just your handset you need to think about if it's lost or stolen. Don't forget the cost of rogue calls and downloads can run into hundreds of pounds before you notice your handset has gone missing. Plus being without a phone can delay you from contacting your network provider to slap a bar on all outbound calls.

From that point, you'll usually be covered for the cost of unauthorised calls, but you'll usually need to have reported it missing within at least 24 hours. That's cut to 12 hours with some providers, such as Cheaper Gadget Insurance, Mobileinsurance.co.uk and Talkcover.

You'll also need to tell the police if the phone is stolen or lost. Again, do this ASAP and ideally within 24 hours to avoid any difficulties when claiming.

While it's rude to ask how old a lady is - and sensitive men too! - your phone's age matters. Some insurers will only accept mobiles under six months old, but others insure handsets which are three years old, so check yours is eligible before you buy.

Where the age of the hand holding the phone does matter is if it's a child. Generally, they won't be covered until they are at least 16, and maybe older. So again, don't buy cover if you won't be protected, and try self-insuring instead.

Unfortunately, the mobile insurance market is becoming well-known for some providers erring on the side of NOT paying out, and thinking up increasingly slippery excuses why they don't owe you a new phone.

Some insurers refuse to pay out for theft if a phone is taken out of someone's pocket while at a busy gig, saying this doesn't count as robbery as no force was used.

Depending on the insurer, known exclusions can be a long list. But here are some of the biggies. You may not be covered:

• In the first 14 or 21 days of the policy
• If you try to pimp up your phone, and it gets damaged in the process.
• If you need to leave it in your car.
• If your IMEI number, effectively your phone's serial number, has been tampered with.
• If you do not supply, or have, the IMEI number. Some may want it displayed on the purchase invoice.
• If you have a computer virus on your phone (see Antivirus For Mobiles for how to prevent this for nothing)
• Data including contacts, downloads and photographs are not usually covered, so back up regularly for free.
• If you've lost your receipt.
• If you weren't showing reasonable care, eg, it was left on a cafe table when it went missing.

This type of back-up is becoming increasingly common, popularised by Apple's iCloud system. You plug in and data is synced with a server, effectively saving it to be retrieved at a button push. Always check you know exactly which info is being stored, and if anything important is missed, then use a different route to save that.

Here are the top methods we found to do this:

• iCloud. Apple iPhone customers can use iCloud for free - you simply select the option to set this up via iTunes (see how to turn it on). It stores contacts, settings, apps and more for you to retrieve when needed.

• Android backups. These are a bit more complex, and not our specialist area. Take a look at this step-by-step guide on giant tech website Lifehacker for how to go about doing this.

Most modern phones will be supplied with a cable and some software to connect them to your computer. This software is usually designed to sync calendars and address books, but you can use just it to store numbers.

All smartphones now have a dedicated back-up service, but these usually store stuff on the PC, not online, which could be a worry if your system crashes.
Samsung phones use KIES and Blackberry uses its own Blackberry Desktop Software.

Increasingly, mobile networks themselves offer to store your data for free. O2 customers can sign up to Bluebook.

Orange also offers a backup service, Memory Mate, but charges you a one-off fee of £2.99 (unless you're upgrading in-store). Three Mobile, Vodafone and T-Mobile users should check the web-based options above.

The old-school pen and paper route

For all the fancy new technologies that promise to save you time, there's still a whole lot to be said for a pen and little address book. Just remember to update the book occasionally with new numbers, and not to 'put it somewhere safe' which you'll then forget all about.