Nearly four in ten (37 percent) of Brits have replaced their smartphone before the end of their contract, says SmartFoneStore.com.

However, research by the second-hand smartphone seller revealed that 45 percent of smartphone owners don't have any insurance, so they have to fork out for the replacement themselves. Furthermore, the majority of these end up replacing their handset within the first six months of the contract.

Four in ten Brits said they opted out of handset insurance because of unreasonable costs, while 20 percent said ambiguous policy wording made them think twice about taking out a policy. Of the Brits that do have insurance for their handset only a quarter are covered for accidental damage or loss.

More than four in five (82 percent) said that current stand-alone prices for handsets are far too high, meaning they end up settling for a basic mobile if they need to replace their existing model before the contract expires. 37 percent also admitted avoiding second-hand mobile in case they did not work properly.

Six in ten said the model of handset is the most important factor when choosing a mobile phone deal. However, with additional call costs, data and SMS charges, 20 percent say their monthly bill is in excess of £60.

"There is no doubt that as a nation, we are well and truly addicted to our smartphones – the devices have become an integral part of our lives and many of us would feel lost without them," said Olly Tagg, founder of Smartfonestore.com.

"Given this dependence, it is surprising that so few consumers opt to purchase mobile insurance. They may feel that, given the relatively large investment of a two year contract, insurance costs would stretch budgets beyond their allowance. But when something goes wrong, the cost of replacement can quickly dwarf the original price of the insurance, which is why many people have to make do with inferior handset while still forking out for the expensive smartphone tariff."

Nearly four in ten (37 percent) of Brits have to replace their smartphone before the end of their contract, says SmartFoneStore.com.