Mobile phone service and repair specialist Intec has introduced a standard rate on all handset damage inspections and repairs for insurance companies.
Intec claims this will enable loss adjustors to reduce the rising costs stemming from the five million claims made each year.
Around three million people made claims for damage to their phone handsets last year, including 600,000 who dropped their mobiles down toilets, 400,000 who spilled drinks on theirs and 200,000 who put theirs through washing machines.
From now on, Intect says that it will charge £49.95 plus VAT per handset for handsets that are economically repairable, irrespective of model or age.
Intec claims that pursuing a repair option rather than settling on a replacement can significantly reduce the cost to insurance companies - in some cases by as much as £50 per phone.
Intec's business development director Charlo Carabott said: "With such large numbers now making claims for loss or damage to their handsets, it is time the insurance industry took a more pragmatic approach to meeting claims.
"Over two thirds of mobile phone subscriber insurance claims are for accidental damage, which, in a significant number of cases, can be repaired.
"Yet all too often, because of the apparent low up-front cost of a mobile phone, insurance companies often waive through the cost for a replacement, which can be two or three times that of the original purchase price.
"The problem has also been aggravated by numerous false claims as people attempt to secure handset upgrades."
