Cell Phone Insurance - is it worth it?Jul 12, 2013

With many offers from cell phone insurance providers that tend to advertise themselves as the best and almost a necessary option when you buy a new cell phone, you can also see many people who do not have cell phone insurance plans. So who’s to trust and what should you do?

Here are some major factors that you need to consider to make a reasonable decision.

mobile-phone-insurance First of all, it depends on how much does your cell phone cost, so that you can calculate the relation between the money you’ll pay for insurance and the money you will lose, if something happens to your phone.

If you have a high-priced telephone, especially a smartphone, it would surely cost you more to replace it then to use insurance. Insurance companies usually take about 5$ every month and $50 to $150 non-refundable payment called “deductibles”.

The second factor you need to think about is harder to calculate. Will your cell phone insurance help you to save the money or, to the contrary, will it drain more than you would spend if you would have just bought a new phone - the answer depends on when are you “planning” to lose or damage your phone. If you lose your expensive smartphone in 3 months - yes, surely you will save much. But if your budget cell phone will remain safe and sound in your pocket for 3 years - then even a relatively cheap phone insurance will be just a waste of money for you.

Cell-Phone-Insurance Another thing you have to be absolutely keen on is to carefully read the contract that you are signing up, because what even the best mobile phone insurance companies promise in their colorful brochures is just advertisement. For example, your claim for replacement will be rejected if your telephone’s screen been damaged and now there’s an ugly crack on it. You will only get it replaced if you lose the device or it gets severely damaged to the point of being useless.

The policy for replacement a cell phone is usually quite the same in all the cell phone insurance companies and what it says it that the damage caused to your phone is only “good” enough for replacing it is when it’s electronic or mechanical components do not work anymore.

What you also have to understand is that cell phone insurance is not like car insurance, you do not get paid - you get another phone. And it is, if fact, not guaranteed that you get exactly the same phone, and it might also take you some time to wait for it.

Take these facts into consideration and, in any case, be careful with your cell phone.