Cell Phone Insurance: Do You Need It?

Many people decide against cell phone insurance because they want to lower their monthly bills. They promise themselves that they will be careful with their new devices, which carried average prices of $687 for iPhones and $254 for Android models in 2015. Unfortunately, 35% of cell phone owners break or in some way damage their phones in the first year of ownership. In 2011, 30 million Americans lost their phones. On average, cell phone users lose their phones once a year. If you have an expensive smartphone, you need to invest in cell phone insurance. 

Insurance Types

Just one incident during your smartphone ownership will pay for your insurance costs provided you are properly covered. Before buying a plan, explore the fine print. Most plans cover liquid and physical damage, but not all cover theft and loss. Some will extend the warranty of your phone and cover electrical problems, while others will not. Also, you need to find out if you have a deductible. Some plans will also hit you with a service charge for each repair. Before you buy, see how many claims you are allowed per year and for the length of the service contract. Also, some plans impose a limit on the cost of repairs. These insurance plans usually run between seven and ten dollars a month plus the cost of the deductible. Unless you are one of the rare people who never break or lose their phones, you should invest in the insurance. 

Filing Claims 

Remember, when you file a claim, the company has the power to accept or deny it. Also, the insurance will cover repairs and replacement. In most instances, you will not receive a new phone but a refurbished one. However, the company is required to provide the same model or a "comparable" one.  Insurance will also not cover the normal "wear and tear" you inflict on your phone. Still, unless you are prepared to pay a hefty price for a replacement phone, an insurance policy is the way to go.

Today's smartphones are a significant investment that you need to protect. Most smartphone users have trouble getting through a day without their phones, so you need to secure a way to quickly repair or replace yours. Look carefully at your cell phone providers insurance plan before you take it. If the terms are not what you want, you can look into third party insurance, such as iphone insurance. With proper vigilance, you will be able to find a good insurance deal. 

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