Jeffrey Wade
With the average cost of a new iPhone now exceeding $1,000, many people wonder if they should insure their phones. Cell phone insurance can be a good idea if you're worried about losing your phone or damaging it beyond repair. It can also be a good idea if you have a history of damaging your phone or if there are kids in the house who might see your phone as a plaything. However, insurance might not be worth it if you can afford to replace your phone without financial strain and take relatively good care of your device. Additionally, some credit cards include cell phone insurance as a cardholder benefit if you pay your phone bill with that card, and homeowners' or renters' insurance policies may also cover your phone in certain situations.
| Characteristics | Values |
|---|---|
| Cost of insurance | $7-10 per month on average, but some plans can cost up to $30 per month |
| Cost of replacement | Hundreds or thousands of dollars |
| Who uses the phone | Accident-prone, forgetful, or teens |
| Existing coverage | Homeowners or renters insurance, credit card protection plan |
| Type of phone | Latest-edition smartphone or budget model |
| Phone case | Otterbox protective cases |
| Phone usage | Frequent users |
| Phone value | Expensive |
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What You'll Learn
Cost of insurance vs. replacement
The cost of cell phone insurance depends on several factors, including the insurance carrier, the type of phone, the deductible, and more. For example, the cheapest AT&T protection plan costs $8.99 per month, while the highest costs $10.99 per month. T-Mobile's standard device protection plan costs $10 per month, while its Premium Handset Protection plan costs $12 per month. Verizon's Wireless Protection Plan costs $7.15 per month, while its Total Mobile Protection plan costs $13 per month.
The cost of cell phone insurance can also vary depending on the type of coverage chosen. For example, some plans may offer only theft and loss coverage, while others may include accidental damage coverage as well. Additionally, some plans may have a deductible, which is an amount the policyholder must pay out of pocket when filing a claim. The deductible can range from $50 to $200, depending on the insurer and policy.
When considering the cost of insurance, it is important to compare it to the cost of replacing a cell phone. The average cost of a cell phone is around $550, but it is not uncommon to find phones that cost over $1,000. If the cost of replacing a phone would be financially straining, then insurance may be a worthwhile investment.
On the other hand, if one can afford to replace their phone without financial strain and takes good care of their device, insurance may not be necessary. Additionally, it is important to consider if one's phone is already covered under an existing policy, such as homeowners' insurance or a credit card protection plan. By evaluating the cost of insurance against the cost of replacement and considering one's personal circumstances, one can make an informed decision about whether cell phone insurance is necessary for them.
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Existing coverage
Additionally, you may be able to cover your phone or pay a bit more to do so through your homeowners policy. This might cost you about $25 for an additional $1,000 in coverage. You can also check the "personal property coverage" section of your renters/homeowners insurance policy to see if your cell phone is already covered or contact an agent to discuss your current cell phone protection.
Another option is to use a credit card that provides free cell phone insurance if you pay your monthly cell phone bill with that card. For example, American Express has multiple credit cards that offer up to $800 in coverage with a $50 deductible.
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Phone age and model
The cost of a cell phone insurance plan varies based on the phone's brand, model, and age, and the coverage amount you select. Typically, the more expensive the phone is, the higher your premium will be. The average cost of a new iPhone is now over $1,000, and that's not even counting the price of insurance. The average cost of a cell phone is around $550, and it’s not uncommon to find phones that cost well over $1,000.
If you tend to always have the latest smartphone model, an insurance plan that includes loss and theft coverage may be worthwhile. On the other hand, if you tend to use older phone models or opt for budget models, it might not be worth paying for insurance.
You can purchase cell phone insurance directly from the manufacturer, such as Apple (AppleCare) or Samsung (Samsung Care+). The prices start at $3.99 per month, and there are several plans and payment options depending on your model. You can also buy insurance through your cell phone carrier, such as Verizon, AT&T, or T-Mobile. The cost of these plans generally depends on the type of phone you have, your cell phone plan, and the number of people and phones covered, among other factors.
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Accidents and loss
However, it's important to note that not all accidents are covered by insurance. For example, if you've made changes to your phone, such as aftermarket modifications or DIY repairs, you may be disqualified from coverage, even if the damage is unrelated. Additionally, cell phone insurance generally doesn't cover anything already covered by the manufacturer's warranty, including cosmetic flaws or device defects.
If you're accident-prone, have children who see your cellphone as a plaything, or are buying insurance for a teen, insurance might be a good idea. However, if you take good care of your phone and can afford to replace it without financial strain, you may be comfortable going without insurance.
There are also alternative ways to protect your phone without paying for insurance. You can invest in a protective case, like an Otterbox, which can help safeguard your phone if you drop it. You can also consider using a credit card that provides free cell phone insurance if you pay your monthly bill with that card. Some credit cards offer up to $800 in coverage with a $50 deductible.
Ultimately, the decision to get cell phone insurance depends on your individual circumstances and how comfortable you are with the risk of loss or damage.
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Phone cases
While cell phone insurance is pitched as a money-saver for those who frequently damage their phones, it is not always worth the cost. The monthly fees and high deductibles can add up, and you may end up with a refurbished phone as a replacement.
Instead of insurance, consider investing in a good protective phone case and a screen protector. A case can help prevent scratches, cracks, and other common types of damage. It can also protect your phone from dirt and grime, which can build up and cause your device to malfunction.
When choosing a phone case, look for one that is durable and made of high-quality materials. It should fit your phone snugly and have raised edges to protect the screen and camera lens. You may also want to consider a case with extra features, such as a built-in screen protector or a wallet case that can hold your cards and cash.
In addition to a case, a screen protector can provide an extra layer of protection for your phone's screen. There are many types of screen protectors available, including tempered glass, plastic, and liquid options. Choose one that is compatible with your phone case and offers the level of protection you need.
By investing in a good phone case and screen protector, you can help protect your phone from damage and save money in the long run.
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Frequently asked questions
Cell phone insurance can be a good idea if you're worried about losing your phone or damaging it beyond repair. It covers the cost of replacing your phone if it's lost, stolen, or damaged. It also covers accidental damage, such as cracked screens and water damage.
The cost of cell phone insurance varies depending on the insurance company and the type of coverage you choose. You can expect to pay an average price of around $7-10 per month for most plans, but some can cost as much as $30 per month.
The biggest downside of cell phone insurance is the monthly premium, which can add up over time. Additionally, there may be a deductible that you have to pay when you file a claim, which can range from $50 to $200 or more. Some insurers may also send you a refurbished phone rather than a new one as a replacement.
