Given that nearly half of all smartphone owners end up damaging every phone that they have, cell phone insurance makes a lot of sense.
The only issue is that smartphone insurance costs money and it might not be cheaper than replacing a phone. If you’re wondering whether or not the insurance is worth buying, you should consider all of the factors that come into play.
Here are four ways to find out whether or not phone insurance is worth buying.
Before you buy any cell phone insurance, you need to know what’s covered in the plan. All the major carriers offer some kind of insurance program, but you might want to see what’s really covered by the. Most companies won’t cover the most common problems, which could leave you still responsible for paying in the end.
Deductibles are a real issue when it comes to calculating the real value of an insurance claim. If your $800 phone is stolen but it costs you a $500 deductible to get it replaced and you’ve paid $300 for your insurance, it might not be worth it.
There are limits to claims as well. If you need your phone replaced more than twice in a year, you could end up having to pay for the third out of pocket.
Several plans won’t cover you in those direst of circumstances when you need coverage the most. Some plans cover you for loss, liquid damage, theft, and more. Others will only cover you in the case that there are factory defects, which might be under the standard warranty of your phone.
Get a plan that’s comprehensive and not overpriced. You’ll have to read the fine print and compare several plans together before you make a decision. However, once you find a plan that doesn’t cost you an arm and a leg while leaving you covered, you’ll be happy to pay for peace of mind.
Crunch the numbers before you sign on to any plan. A plan that might sound like a great value could end up costing you more than you bargained for in the end. As mentioned above deductibles should come into play when you’re deciding on the plan that works for you.
Most plans mean that you’re only paying an insurance payment that doesn’t have anything to do with your deductible. A two-year insurance plan in addition to the deductible should be significantly less than the cost of a new phone or the most expensive repair. In this case, insurance for your cell phone makes a lot of sense.
Since most of the major carriers and providers offer some kind of service, consider their insurance plans in addition to their coverage. The full plan that you could get should offer robust insurance as well as coverage that suits your needs. Monthly costs that are way more than repairs you anticipate needing aren’t worth it.
There are also a few hacks to save money on service. If you’re willing to buy a used or refurbished phone out of pocket, you could get something in great condition that comes with a warranty. When you save money in this aspect, you can afford to buy insurance or deal with a premium when a repair comes around.
If you currently have renter’s insurance or homeowner’s insurance, you might already be protected from problems with your phone. Many of these plans cover devices that are lost, stolen, or damaged. However, here’s another instance where your deductible comes into play.
If your deductible is more than $500, it might not be worth your while.
When this is the case, then you might actually save more money replacing the phone out of pocket rather than trying to get your insurance to cover it. In addition to the cost of your deductible, your insurance goes up when you add claims. If you claim your phone, then you could end up paying a lot more for insurance month to month, making it a costly choice.
You shouldn’t ever buy more insurance than you need. Look through your current plan in detail and even conder calling your insurance provider to find out if you’re already covered.
Another alternative is the insurance offered by credit card companies. Your credit card company might offer you a warranty on the items you’ve purchased with your card. This is a common feature and
If an insurance plan is too much or you can’t afford the most expensive plan out there, you need to take action to minimize loss. If you want to protect your phone, you should ensure you have a high-quality case and a screen protector to keep your glass safe.
Take advantage of Find my iPhone, Lookout, or Find My Lost Phone for Android. Whatever type of phone you have, there’s a tool to help you keep your phone secure.
You can also look into ways that you can fix and troubleshoot small repairs on your own. If you’re a little bit tech-savvy, then you could save yourself some money.
If you have an insurance plan with a low deductible, don’t run into the shop to get every little thing repaired. Use your repair credits wisely and only get your phone repaired when it’s an absolute necessity.
When you’re spending more than a few hundred dollars on anything, you should consider your insurance options. Cell phone insurance for smartphones can keep you from being without your phone even after the most treacherous of accidents.
Check out our guide to buying a protection plan for those expensive devices that help keep you healthy at home.