Jeffrey Wade
Mobile phones are expensive and easy to break, so it's worth considering insurance. You can buy insurance from your wireless carrier (AT&T, T-Mobile, or Verizon) or a third-party subscription service (AppleCare+, Samsung Care+, SquareTrade, etc.). Plans often cover accidental damage, water damage, broken/cracked screens, mechanical failures, loss, and theft. However, many plans do not include an unlimited number of claims, and you will likely still owe a deductible for fixing a cracked screen or replacing the device if it's lost or stolen. You should also be aware that if you claim for a lost, stolen, or damaged phone, you could lose your no-claims discount, putting the price of your home contents insurance up.
| Characteristics | Values |
|---|---|
| Peace of mind | You won't have to worry about the cost of repairs or replacement if your phone is damaged, lost, or stolen. |
| Cost of repairs | The average cell phone repair claim payout is $331.75, and repairs can often cost much more, especially for newer phones. |
| Cost of replacement | Smartphones can cost upwards of $1,000 to replace, and insurance can help cover this cost. |
| Dependence on smartphones | Phones are an essential part of daily life for many people, and sudden damage or loss can be highly disruptive. |
| Risk of damage | Smartphones are more likely to get damaged than any other electronic device, and they are easy to break. |
| Alternative to insurance | You may already have insurance through your credit card or packaged bank account, or you can consider self-insuring by setting money aside each month. |
| Insurance options | You can purchase insurance through your wireless carrier, a third-party subscription service, or a traditional insurance company as a standalone policy or part of homeowners/renters insurance. |
| Insurance cost | The cost of insurance varies depending on the insurer, device, deductible, and other factors, but it can start as low as $3.99 per month. |
| Deductible | Most insurance policies require a deductible, which can range from $50 to $200 or more, and you may still owe this even with insurance. |
| Coverage limitations | Insurance may not cover all types of damage, loss, or theft, and there may be limits on the number of claims you can make. |
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What You'll Learn
Mobile phones are expensive and easy to break
Mobile phones are now more expensive than ever, with the price of a modern, top-of-the-range smartphone being way over £1,000. With the arrival of foldable phones, the price can go up to £2,000 and beyond. The cost of repairing or replacing a smartphone can be high, and with smartphones being easy to break, insurance can be a necessity.
Smartphones are more likely to get damaged than any other electronic device, and the average cell phone repair claim payout is $331.75. With the constant addition of new technology, smartphones are becoming more and more expensive. The big-name manufacturers are constantly trying to create a device that is better than their competitors, and creating devices with all this new technology costs money.
While some may argue that insurance is not worth it as you may end up overpaying in the long run, it is still a good idea to consider it. This is because, in the event of an accident, a potentially expensive and inconvenient problem becomes easy to fix. For example, screen repair costs up to $49 with cell phone insurance, and a standard deductible ranges up to $499.
Additionally, many cell phone insurance companies promise phone replacement, but it is important to note that you will often get a refurbished replacement phone and not a new one. It is also worth bearing in mind that if you buy a second-hand phone, you will struggle to get insurance. Most policies only cover brand new handsets, so you will be better off covering your phone through your home contents insurance or self-insuring.
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Insurance covers repairs and replacements
Mobile phones are easy to break and costly to fix or replace, especially if they are high-end smartphones. The average cost of a cell phone is around $550, and it is not uncommon to find phones that cost well over $1,000. The average cell phone repair claim payout is $331.75, and the cost of repairing a cracked screen can be up to $49.
Mobile phone insurance covers repairs and replacements in the event of accidental damage, water damage, mechanical failure, and cracked screens. Some plans also cover loss and theft, although these tend to be more expensive. Insurance can be purchased through your wireless carrier (e.g. AT&T, T-Mobile, or Verizon) or through a third-party subscription service (e.g. AppleCare+, Samsung Care+, SquareTrade, or Geek Squad Protection). The cost of insurance varies depending on the insurer, device, and deductible, but it typically ranges from $3.99 to $199 per month.
It's important to note that many insurance plans have limitations and exclusions. For example, some plans may only cover brand new handsets, while others may not cover loss or theft. Additionally, there may be a deductible that you have to pay out of pocket when filing a claim, which can range from $50 to $200. It's crucial to read the fine print and understand what is covered and what is not before purchasing mobile phone insurance.
While mobile phone insurance can provide peace of mind and protect you from high repair or replacement costs, it may not be necessary for everyone. Some alternative options include using a credit card that provides free cell phone insurance or self-insuring by setting aside money each month to cover any potential repairs or replacements. Ultimately, the decision to purchase mobile phone insurance depends on individual needs and preferences.
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It's a waste of money if you don't make a claim
Mobile phone insurance is a waste of money if you don't make a claim. The cost of these insurance plans generally depends on the type of phone, the cell phone plan, and the number of phones and people covered, among other factors. The cost of smart phones continues to rise, with some phones costing over $1,000. While insurance may bring down the cost of repairs, you may end up overpaying in the long run. For instance, you may be paying over 50% of the original value of the phone to insure it just once, and this amount is likely to be higher than the cost of repairs.
Additionally, you will likely still owe a deductible for fixing a cracked screen or replacing the device if it's lost or stolen. This can be as high as $499, and you will still be paying the monthly cost of your cell phone insurance regardless of whether you make a claim. It is also worth noting that many cell phone insurance companies promise phone replacements, but you will often get a refurbished phone, not a new one.
Instead of purchasing insurance, you could put your money towards a high-quality case and screen protector. This is likely to be cheaper than paying for insurance, and you can always pay for the rare device repair or replacement as and when it is needed. You could also consider self-insuring by putting money aside each month into a pot of cash that you can use to replace or repair your phone.
Furthermore, if you have a packaged bank account, you may already have mobile phone insurance. You can also consider using a credit card that provides free cell phone insurance if you pay your monthly bill with that card.
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$4.99 $19.99
$9.98 $10.99
You may get a refurbished phone, not a new one
Mobile phone insurance is a policy that covers the cost of repairing or replacing your phone if it is damaged, lost, or stolen. While this may bring down the cost of a cracked screen, you may end up overpaying in the long run. Additionally, even if you have insurance, you may still need to pay a deductible for fixing a cracked screen or replacing the device.
When it comes to replacing your phone, you may get a refurbished phone, not a new one. This means that the phone has been previously owned and then returned to the manufacturer or retailer, who inspects and repairs it to ensure it is in good working condition before reselling it. Refurbished phones can be a great way to get a like-new device at a discounted price, but they may not always be eligible for insurance. Many insurance companies only cover brand-new phones, and some specifically exclude refurbished phones purchased from auctions or websites like eBay.
If you're considering insuring a refurbished phone, it's important to read the fine print of the insurance policy carefully. Some insurance providers, such as Insurance2go, Loveit Coverit, Wearesosure, Insurance2go, Tinhat, and Arma Karma, do offer coverage for refurbished phones, but they may have specific requirements. For example, they may require the phone to be purchased from an authorized retailer, be under a certain age, or have a 12-month warranty.
To ensure that your refurbished phone is eligible for insurance, it's best to contact the insurance provider directly and ask about their specific requirements and restrictions. By doing so, you can make an informed decision about whether to insure your refurbished phone or explore alternative options, such as using a credit card that provides free cell phone insurance or self-insuring by setting aside money each month for potential repairs or replacements.
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You can insure through your carrier or a third-party
Mobile phones are easy to break and costly to fix, so it's no surprise that many people consider getting mobile phone insurance. If you're thinking about getting it, you have two main options: insuring your phone through your carrier or through a third-party subscription service.
Insuring your phone through your carrier is a convenient option as you can simply sign up for a plan that covers accidental damage, defects, and loss and theft. Many carrier plans also offer tech support via call, chat, or in-person, and same-day repairs and fast replacements. However, it's important to note that the cost of carrier insurance is typically higher than that of third-party insurance, with prices starting at $9/month. Additionally, carrier plans usually limit you to 2-3 claims per year and often require you to purchase the plan within 28 days to 6 months of buying your phone.
On the other hand, third-party subscription services like AppleCare+, Samsung Care+, or SquareTrade offer more flexibility in terms of the age of the phone and the number of claims. For example, Worth Ave. Group by Progressive offers unlimited claims and covers both new and refurbished phones. The cost of third-party insurance can be as low as $5/month, making it a more affordable option than carrier insurance. However, it's important to note that third-party insurance may not cover theft, so it's crucial to carefully review the terms and conditions of any plan you're considering.
Ultimately, the decision to insure your phone through your carrier or a third-party depends on your specific needs and preferences. Carrier insurance offers convenience and comprehensive coverage, while third-party insurance provides more flexibility and affordability. It's important to research the options available to you and carefully consider the pros and cons of each before making a decision.
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Frequently asked questions
It only takes one drop to make you wish you had smartphone insurance. Smartphones are easy to break and expensive to fix, with the average cost of a cell phone being around $550 and some phones costing over $1,000.
Mobile phone insurance promises to repair or replace your device when needed. It covers repairs not covered by the manufacturer's warranty, as well as theft and accidents. Depending on your plan, it can also cover water damage, broken/cracked screens, mechanical failures, loss, and theft.
The cost of mobile phone insurance depends on the insurer, device, and deductible. Most policies require a deductible, which can range from $50 to $200. The cost of insurance can also depend on the type of phone, the number of people and phones covered, and other factors.
