After surveying more than 1,000 people across the UK, Virgin Media found a "careless" attitude is prevalent to protection against loss or damage of often expensive mobile handsets.
The research revealed that 72% of Brits don't have mobile phone insurance and 64% would not consider taking it from their mobile network operator, with the majority feeling that it is "too expensive".
Despite 70% of people admitting to breaking or losing up to seven phones over the last decade, 79% of those surveyed said that insurance for their phone was unnecessary.
Some respondents were concerned that insurance will not cover certain types of damage, as 47% reported broken phones due to water damage, which is not covered by most policies.
The cable operator said that many people can be met with a "nasty surprise" if something goes wrong, including 23% of people with cover saying that they were forced to pay for a replacement phone by the provider.
Jamie Heywood, the director of mobile at Virgin Media, said that it is time for a "shake up" of the mobile insurance market.
"If you've ever dropped your phone into your drink or inadvertently put it through a cycle in the washing machine, you're not alone, as these are some of the most common causes of damage to handsets," he said.
"With smartphones being core to our daily lives and many of the latest devices costing up to £500, it's shocking to learn that so many consumers aren't protecting their investments.
"Clearly there's an opportunity for the mobile industry to transform consumer perception about the importance and value of mobile insurance; it's time to shake up the market."
Matt Reid, the UK director at specialist gadget insurer Protectyourbubble.com, said that mobile networks have priced phone insurance plans too highly.
"I'm not surprised that 64% won't consider their network's mobile insurance as it can be incredibly expensive - up to £15 - to cover an iPhone. That's about half the cost of a monthly mobile bill," he said.
"This cost, coupled with the explosion of the smartphone market in recent years, has fuelled a surge in specialist gadget insurers, offering low-cost insurance to those who want to safeguard their mobiles, tablets and other portable gadgets.
"Subsequently the choice is vast, but those looking for gadget insurance should make sure their policy covers them worldwide for accidental damage - including liquid damage - in and away from the home, theft, loss and unauthorised calls. Don't just compare the monthly premium, check the excess too."