If you own a smartphone, chances are you’ve dropped it at some point — and if you haven’t already done so, chances are you will at some point. There’s a reason, after all, why things like screen protectors and cases are so popular. But what about smartphone insurance? Is it something you need? Is it worth the added expense? What follows is a look whether it’s worth it and what types of insurance are available.
Whether or not insurance makes sense is something you’ll have to decide based on your own unique situation. Perhaps you like to buy high-end devices and want the peace of mind that can be bought with insurance. Even so, it can be argued that many users might want to take a pass on this option. Consider these reasons for opting against smartphone insurance.
Even a low monthly rate can add up to a princely or kingly sum eventually. It just might not be worth your while to pay for insurance, especially if you have a lower-end device or if you plan to upgrade your device sooner rather than later.
Remember that the low monthly insurance rates really only tell part of the story because you’ll more often than not still incur some out-of-pocket expenses for any repairs. So consider issues like the deductible before you determine if smartphone insurance makes sense in your case. The more expensive the smartphone, the more you’ll be paying out of pocket.
Depending on the plan you choose, you might have a cap on the number of claims you can file. Be sure to read the fine print because you might not want to invest in insurance if there are limits placed on how many claims you can make over the coverage period.
In the event that your phone is out of commission, you may be disappointed if you believe you’ll get a phone that is spanking new. The reality is that most companies will either repair the one you have or give you a refurbished phone. So if this is a distinction that matters to you, you may or may not want to pursue insurance for your mobile device.
Types of Insurance
You can get coverage for your smartphone or cell phone that will get you a replacement if the phone covered under your policy is damaged beyond repair. However, as was noted above, this will usually not result in your being issued a brand new phone. You will most likely be given a refurbished phone that is at least equal to the one you have coverage for. For many people this won’t be a big deal since a fully refurbished phone should theoretically work as a new one, but you might want to think twice about insurance if you expect a new phone.
Coverage for drops and spills is also possible. Do you find yourself a tad clumsy when it comes to handling your phone? While some mobile device owners are extra careful, there are others who always seem to be fumbling their smartphones or cell phones. Protective cases are a one-time expense that protects your phone from damage stemming from drops and spills. As a result, you might want to consider that option over getting insurance coverage.
One of the most dreadful things that can happen to a cell phone is an accident that leaves it with a busted up screen. Depending on the sort of mobile device you have, a broken screen may leave your phone pretty much unusable. If you have coverage to cover such mishaps, the policy will pretty much pay for itself after one such claim.
Is your phone mission-critical in terms of its importance to you? Do you use it for work and for personal reasons? Depending on your situation, it might make sense to get theft or loss coverage. Again, you will probably get a refurbished phone to replace the lost or stolen one.
When it comes to deciding whether insurance on a phone is worth it, a lot of it comes down to you. In some cases, it might make more sense to save the money you would have spent on insurance and then use that money to buy a refurbished phone if your current one becomes inoperable. In other cases, you might, due to work or personal reasons, find phone insurance worthwhile. Just before to consider your own situation so that you can make an informed choice.