Orlando Harmon
Cell phone insurance is pitched as a money-saver for those who frequently damage their phones. You can purchase insurance from your wireless carrier, a third-party subscription service, or directly from your phone manufacturer. The cost of cell phone insurance depends on several factors, including your insurance carrier, the type of phone you have, and your deductible. While insurance can be a good idea, it's not always the best option if you damage your phone, especially if it's an older model. Additionally, the cost of your insurance plan may differ based on the carrier you choose, as each carrier has different plans and pricing structures.
| Characteristics | Values |
|---|---|
| Cell phone insurance fees | Differ depending on the carrier, type of phone, deductible, etc. |
| Insurance providers | Carriers (Verizon, AT&T, T-Mobile), manufacturers (Apple, Samsung, Google), third-party providers (SquareTrade, Best Buy's Geek Squad) |
| Coverage | Theft, loss, accidental damage, mechanical failure, water damage, cracked screen, power surges, natural disasters |
| Deductible | Out-of-pocket expense ranging from $50 to $200; varies by insurer and policy |
| Cost | Monthly or annual fee; ranges from $3.99/month to $199 for a two-year plan |
| Alternatives | Credit cards that offer free insurance, protective case and screen protector |
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What You'll Learn
Cost factors: phone type, insurance type, deductibles
The cost of cell phone insurance depends on several factors, including the type of phone, the type of insurance, and deductibles.
Phone Type
The cost of insurance varies based on the phone's brand, model, and age. Generally, the more expensive the phone, the higher the premium will be. For example, a Samsung Galaxy S4 Mini and an LG Viper are in the lowest cost group for insurance at $9 per month, whereas a more expensive phone will cost more to insure and incur higher deductibles.
Insurance Type
You can purchase insurance directly from the phone manufacturer (e.g. AppleCare+ or Samsung Care+), from your cell phone carrier (e.g. Verizon, AT&T, or T-Mobile), or from a traditional insurance company as a standalone policy or as part of your homeowners or renters insurance policy. The cost of these plans depends on the type of phone, the cell phone plan, and the number of people and phones covered.
Deductibles
Most cell phone insurance policies require a deductible, meaning that if you file a claim, you will have to pay for some of the cost out of pocket. The size of the deductible depends on the insurer and the policy chosen, typically ranging from $50 to $200. Policies may have different deductibles for different types of damages, and the deductible usually applies per claim rather than per year.
Ultimately, the decision to purchase cell phone insurance depends on individual circumstances. For those who are prone to losing or damaging their phones, insurance can provide peace of mind and reduce potential out-of-pocket costs. However, if an individual can afford to replace their phone without financial strain and takes good care of their device, they may decide against insurance and opt to pay for any repairs or replacements as needed.
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Third-party insurance: SquareTrade, Geek Squad, etc
Third-party insurance is an option for those who are not satisfied with their manufacturer's or carrier's insurance plan. SquareTrade, now part of Allstate, offers single-plan protection starting at $12.99 per month and a family plan for $24.99 per month for up to four devices. SquareTrade covers accidental damage, including drops and spills, and mechanical malfunctions, but it does not include loss or theft coverage, and technical support is not provided. SquareTrade's pricing is device-dependent, and they charge an annual fee instead of a monthly one. A two-year plan costs $129.
Another option is Best Buy's Geek Squad, which offers smartphone protection for devices purchased both inside and outside of Best Buy, provided they were bought within the last 30 days, are covered under a current manufacturer's warranty, and are in new and working order. Geek Squad offers a basic plan and a complete plan with monthly costs depending on the value of your phone. The basic plan offers one or two years of coverage, while the complete package offers two years of coverage, including repairs for accidental damage, mechanical issues, and battery replacement. Geek Squad's standard plan extends your manufacturer's warranty, but for better protection, you may want to consider purchasing the Accidental Damage from Handling Coverage (ADH) plan. Geek Squad's monthly plan costs $7.99 for accidents, spills, and failures, and $10.99 if you want to include theft/loss coverage. There is no deductible or cancellation fee.
Other third-party insurers include Asurion and AKKO. AKKO offers comprehensive coverage, including theft, vandalism, and accidental damage, and can be expanded to cover other items such as tablets and clothing. Their multi-device plans cover one phone per plan and 25 other items.
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Carrier insurance: AT&T, T-Mobile, Verizon, etc
Cell phone insurance fees can differ depending on the carrier. Carriers such as AT&T, T-Mobile, and Verizon offer insurance and protection plans for their customers' devices.
AT&T offers device protection plans called AT&T Protect Advantage, which covers the cost of replacing a phone, potentially saving customers from paying the full retail price. AT&T also includes various fees in its wireless plans, such as an "Administrative Fee," a "Federal Universal Service Charge," and a "Regulatory Cost Recovery Charge."
T-Mobile provides Protection 360™, which includes both an insurance plan and a service plan. The monthly cost of Protection 360™ ranges from $7 to $25 per device, plus applicable taxes. T-Mobile has typically included taxes and fees in the sticker prices of its plans, but it has also made changes to its auto-pay discounts when using credit cards.
Verizon offers phone insurance, repair, and damage protection through its Verizon Protection program. Repairs are performed by Asurion-certified technicians and come with a 12-month limited warranty. Verizon also provides benefits such as Digital Secure, which offers security features like Wi-Fi protection and a safe VPN.
It is important to note that the specific insurance fees and coverage options may vary between carriers and can also be influenced by factors such as device type, location, and the customer's chosen plan.
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Manufacturer insurance: AppleCare, Samsung Care, etc
Manufacturer insurance is another option for cell phone insurance. Apple and Samsung, for example, offer insurance plans for their phones. AppleCare+ can be purchased directly from Apple to insure an iPhone, and prices vary depending on the model. For instance, AppleCare+ for an iPhone 8 Plus or older is $129, while for an iPhone X, it is $199. Samsung also offers Samsung Care+ for its smartphones, with prices depending on the model and region. In the US, Samsung Care+ provides 24/7 support and protection for devices, including repairs by certified technicians using genuine Samsung parts. The plan covers accidental damage, operational or mechanical breakdowns, and theft and loss (only in New York). Monthly payments for Samsung Premium Care are $11.99, and it extends the original one-year warranty to two years.
AppleCare+ does not cover theft, and there is a $99 service fee for replacement claims. Samsung Care+ also does not cover theft or loss outside of New York, and there is a service fee for each service request due to physical or liquid damage. Additionally, Samsung Care+ has a limit of three lost, stolen, or unrecoverable claims within a 12-month period.
Manufacturer insurance plans vary in their specifics, but they generally offer similar coverage to carrier insurance plans, including protection against accidental damage, mechanical breakdowns, and sometimes theft and loss. They may also offer extended warranties and technical support. The cost of manufacturer insurance can vary depending on the device model and the specific plan chosen. It is important to carefully review the terms and conditions of these plans to understand the coverage and any exclusions or limitations.
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Alternatives: credit cards, phone cases, trade-ins
Alternatives: Credit Cards, Phone Cases, and Trade-Ins
Cell phone insurance fees can vary across carriers, and there are alternatives to consider. One option is to utilise credit card perks. Some credit cards offer cell phone coverage if you pay your monthly wireless bill with the card. This can provide reimbursement for a damaged or stolen phone, with a deductible for each claim. It is important to note that this coverage may be secondary, meaning it applies only after any other insurance coverage has been used.
Another alternative is to invest in protective measures, such as phone cases and screen protectors. A well-reviewed water-sealed case can cost around $15, while a screen/case combo can be purchased for as little as $20. For scratch protection, screen protectors are available for as low as $5. Combining a screen protector with a protective case can provide solid protection for your phone at a relatively low cost.
Additionally, there are simple DIY methods to protect your phone. For instance, placing your phone in a Ziploc bag when it rains can help prevent water damage, and it's still possible to use the touchscreen through the bag. While this may not be a long-term solution, it can be a cheap and effective temporary measure.
Finally, consider the option of trade-ins. If you're looking to upgrade your phone, many carriers offer trade-in programmes that can help offset the cost of a new device. By trading in your old phone, you may be able to receive a discount or credit towards your new phone purchase.
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Frequently asked questions
It depends on the insurance provider. Some insurance policies cover theft, while others do not.
The cost of cell phone insurance depends on several factors, including your insurance carrier, the type of phone you have, and your deductible. Prices can start at $3.99 per month for an iPhone or Galaxy phone.
Cell phone insurance covers damage outside a manufacturer's typical warranty. This includes damage from drops, water, and sometimes theft. It also covers mechanical failure after a warranty ends.
Cell phone insurance can be worth it if you are prone to losing or damaging your phone, or if you want peace of mind. However, if you are careful with your phone and can afford to pay for repairs or replacements out of pocket, you may not need it.
