That's what I do. Buy the handset outright and stay sim only. I buy Google Nexus devices directly from Google, and since I'm a heavy data user I get 22GB of data/month for just 20quid. Works out cheaper on the long run and means I can avoid the phoneshop idiots... But I still love the "Phone Shop" TV series.. If you're not interested in the latest technology and just want a basic, cheap phone, buying it outright on a sim only deal is likely to be cheaper. As for insurance - I don't bother. If I break it I buy a new one. Worst case I'm covered on home insurance but not likley to claim. My bank were offering "free" mobile insurance if I upgraded my current account, but I didn't bother as I didn't need all the other "free" stuff they were including as I already source from elsewhere.