If you have recently purchased a cell phone or are thinking of buying one, you may be wondering about cell phone insurance. Is cell phone insurance a good idea or just a waste of money? Well, this depends on several factors. If you have an inexpensive phone that can easily be replaced if you damage, lose it or have it stolen, then no, you probably don’t need cell phone insurance. On the other hand, if you have a more expensive phone such as a smartphone and are prone to breaking or losing phones, you might want the added protection of insurance.
What You Already Have You should know that almost all new mobile phones comes with a limited manufacturer’s warranty of at least one year and protect against most common manufacturing defects. Also, if you purchased your phone and completely paid for it with your credit card, you may have an extended warranty through the issuer of your credit card. It has become standard practice for some credit card companies to extend the warranty for electronics purchases for an additional year after the manufacturer’s warranty has expired.
Extended Manufacturer Warranty Plans Depending on the manufacturer of your mobile device, the company likely will offer you some type of extended manufacturer’s warranty plan that can extend the warranty out to two years or longer in some cases. Most of these plans require you to purchase this additional coverage when you buy your phone or within the first 30-60 days after purchase.
Wireless Carrier Insurance Plans You have the option of purchasing cell phone insurance through the major wireless carriers including AT&T, Sprint, T-Mobile and Verizon. With some of these plans, you have coverage for theft and loss, which is not available with the extended manufacturer warranty plans. There are monthly fees and a service fee when you make a claim. Your service fee may range from $100 to $200, depending on your phone type.
Third Party Insurance Plans Finally, you have the option of purchasing insurance for your mobile device through a third-party insurance plan. Some of the better known third-party cell phone insurance providers include Protect Your Bubble and SquareTrade. These plans often allow you to pay monthly or discount the cost if you pay the sum in one payment. The deductible for replacing your phone typically ranges from $50 to $150, depending upon the type of phone.
Is the cost of mobile phone insurance worth your peace of mind? Ultimately, only you can decide.
