Don’t Break the Bank When You Break Your Phone: Why You Need Cell Phone Insurance

By admin / January 19, 2019
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Smartphone ownership has become the new standard in America. As of 2017, 77 percent of U.S. adults owned a smartphone. In 2011, 35 percent did. 

We’re dependent on our cell phones. If something happened to our phones, then it would be harder to work, shop, and even drive to the other side of town.

Despite that, cell phone insurance still isn’t as common as it perhaps should be. It can save you a lot of time and hassle if your phone gets damaged or lost.

Keep reading to get details on the best phone insurance plan for your situation. 

What Cell Phone Insurance Does (and Doesn’t) Do

Cell phone insurance is like just about every other type of insurance. There are limitations and restrictions on what it covers. 

There are also time limits worth keeping in mind. In many cases, you can’t purchase and activate a cell phone, then decide six months later you want to buy insurance for it.

Open enrollment periods for cell phones are kind of like open enrollment periods for insurance. You often have a few weeks to sign up for cell phone insurance. If you miss that window, then you’re out of luck.

Your phone should come with a basic warranty. But that typically only covers manufacturing defects. In other words, your iPhone will be repaired for free if a part gets recalled, but that’s it.

Comprehensive phone insurance covers a wider range of calamities. If you drop your phone and crack your screen, phone insurance will often cover it. 

But even then, the type of drop matters. For instance, dropping your phone three feet makes you eligible to file a claim. But dropping your phone 100 feet off a pedestrian bridge isn’t covered. 

In general, we talk more about other types of insurance than we do cell phone insurance. You’d be wise to learn more about this coverage before you sign up for a plan and fork over money every month.

Deductibles and Premiums

The best phone insurance plans will still charge a deductible. But the deductible should be affordable. In other words, the deductible should still be a better deal than paying for repairs out of your own pocket.

If your deductible is $75 or even $100, that may feel steep. But if you look at the cost of paying for repairs without insurance, you’ll find that it can easily cost several hundred dollars.

It’s common to go for the cheapest smartphone insurance without looking at the fine print. Don’t do that. A $10 premium with a $25 deductible isn’t going to do you any good if the list of limitations is longer than the list of things covered.

Phone insurance companies have a business to run, after all. If a deal sounds too good to be true, then that’s all the more reason to comb through the contract with a fine-tooth comb before signing.

Finding Your Best Phone Insurance Plans

If all else fails, you should ask your friends about their cell phone insurance. Reading reviews is useful, but word-of-mouth from people you trust can be even more beneficial. 

If you’re looking for more information on cell phones and other devices that improve your life, we’ve got you covered like an extended warranty. Check out our technology archives for more on this topic.

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