Does anyone bother with mobile phone insurance?

I've not bothered with my iPhone 4s, Just don't drop it or throw it in a full sink, will be fine.
Don't forget, you have your standard warranty covering the actual phone and its inners.
But just stick it on the house insurance if you're worried.
I've dropped my 4s a few times (falling out of pocket too) and it just bounces really lol, not a problem

Plus, when taking out insurance, they generally won't cover you for accidental damage or water damage.
Any damage caused, they'll always try to blame you anyway, it's not worth the paper it's written on

I used to have the O2 insure, but then got a Smile More bank account which has it included for £12 per month, rather than £10 for each phone on O2 (I have two).

I found O2 insure brilliant when I had to make a claim, the current account package insurers not so much, taking up to 3 weeks from start to finish.

However, I would simply not go without insurance. I've made probably 8 claims over a 10 year period, each time getting either a brand new, or repaired phone. I cannot complain about the service in that respect. I am not clumsy either, these have been accidents you simply couldn't account for in your day to day activities. I've never dropped it in the bath, for example...

Modern phones are very expensive and, in most cases, fairly easy to break beyond repair. Even if you are really careful with your things it only takes a split second of not paying attention to destroy your phone (drop it on the floor or down the toilet or whatever). A lot of insurance policies are only a few pounds anyway. You might never need it but it is probably a better option than forking out hundreds for a new phone. I have not needed to use mine yet! (touch wood)