... I also went for 2 year insurance on top of that for £65.
Are you sure you bought the right cover, that should have been £175 for that device ...
http://www.pcworld.co.uk/gbuk/care-plans-tablets-136-commercial.html
Yes was def £65 for insurance cover. Maybe they were doing a deal at the time.
Well, I would double check, its very unlikely it was a deal. I used to work for DSG and cover was never discounted/promo'ed. And if you have the wrong policy, should the worst happen, it will be worthless - regardless of whether it was a misrep/accident or not.
Most stuff is covered under your household policy anyway or can be added for just a few quid 
Its actually worth it, when the cost is reasonable (£175 isn't, but £65 certainly would be). The moment you start making claims on your household insurance is the moment your premiums go up, so that extra £65 you would have spent will be near doubled and reflected on your annual premium.
Not to mention the fact that insurance replacement is a palaver and usually leaves you with a substandard product based on current cash value, not like-for-like.
At PCW, we used to have a tonne of instant-replacement (now called "whatever happens") replacements happen at the counter in store - and it always meant getting an equal product, or better (whatever was in stock basically). Taxi drivers with TomToms used to walk in with a smashed entry level TomTom and walk out with a 310 worth twice the price, all for the sake of £20.
So if he has paid £65, and it is in-fact the adequate level of cover (please, OP, check!), then in 1 year when the "new Ipad" is dead and gone; and the OP "accidentally" drops it - it'll be replaced with the latest and greatest "new new Ipad", no questions asked. No calling insurance companies, recording claims, waiting for valuation, paying an excess, then paying a bigger premium at the end of the year.
The gadget cover on bank accounts is equally as good as far as I'm concerned, anything that doesn't record a historical insurance claim is a good thing.
