Cell Phone Insurance Plans: Should You Pay Month-to-Month?

Do you want insurance but can’t afford cell phone insurance plans? Paying month-to-month may sound like a great idea. Click here and know if it’s right for you.

Keyword(s): cell phone insurance plans

In 2015, 2.1 million people lost their phones, either by theft or carelessness.

Nowadays people store the bulk of their life on smartphones: pictures, files, documents, notes – you name it, not to mention the eye-popping cost of a smartphone. So when it turns up missing or falls in a pool, no wonder panic arises. 

Do you know all the cell phone insurance plans? If you don’t, cell phone insurance could be beneficial if you have a habit of losing your phone. 

What is Cell Phone Insurance?

In short, cell phone insurance is a plan provided by your carrier where you pay a premium in case your phone meets an untimely death. The cost is relatively low, anywhere from a 5-10 dollars a month or more, some per phone.

However, phone insurance deductible tends to be high, the highest averaging around $225 or more per claim. And if you have a habit of losing your phone, some carriers place limits on claims. 

But while it seems tempting, is the premium a gimmick or a life-saver?

Cell Phone Insurance Plans

Because insurance coverage varies per provider, understanding the ins and outs of cell phone insurance takes a little detective work, and you’ll need to review plans side by side. 

Each carrier will supply their plan according to their terms. For example, Verizon insurance, AT&T insurance and so forth provide different premiums, deductibles, and logistics. Cell phone plans often work in ‘tiers’ to accommodate different plans.

Here are some of the basic plans of major cell phone companies.

AT&T

AT&T plans work in three tiers.

The first plan is the mobile protection plan and costs $8.99 per month per device, and covers lost, stolen, damaged, or malfunctioned phones outside of the warranty. 

Mobile Protection Pack cost $11.99 per device and covers the same as the mobile protection plan while offering tech support with issues.

Multi-Device protection pack is another option that cost $34.99 per month but only covers three phones. 

The deductible for each plan ranges from $150-275 for smartphones. 

Verizon

Verizon’s plans are slightly more complicated and they offer insurance through the third-party company, Asurion. 

The extended warranty alone is $3 per device.

Its basic wireless plan covers damage, lost, or stolen phones for $6.95 per month per phone. You’re allowed three claims per year and with an extended warranty its $9 per month. 

Total Mobile Protection plan is $10 to $13 per month per device which adds technical support.

To cover your entire account, with all the mentioned above, you’ll want Total Mobile Protection for up to three devices for $39 per month. On this plan, you’re allowed nine claims in a year.

The deductible is $99-$199.

Sprint

Sprint’s insurance plans differ slightly from previous companies.

For $9-$11 per month, they offer repairs on malfunctions on your device. Because the first two repairs are free, there is no deductible. However, if there are any additional repairs, they cost $25 per repair. 

Total Equipment Plus Plan is more in-depth. They offer repairs plus insurance for $13-$17 per device per month, and insurance covers lost, damaged, or stolen phones, plus technical support. The deductible ranges from $125-$275.

T-Mobile

Three tiers make up T-Mobile’s Insurance plan, and they offer insurance through the third-party company, Assurant.

For $7-$10 per device a month, you get Device Protection containing coverage for damage, device malfunction, stolen, or lost phones. Throughout a year, you’re allowed two claims. 

Premium Device Protection adds AppleCare for $9 to $12 per device, and coverage bumps up to $15 a device for additional technical support.

The deductible per device is $150-$275 for smartphones. 

AppleCare

For iPhone users, Apple offers AppleCare protection, which is separate from cell phone insurance carriers.

AppleCare provides one year of coverage for unexpected damage for $99-$199, plus 90 of technical support. A $29 fee repairs your screen, while other damages average about $99.

Customer Priority Service

Customer Priority Service offers a smartphone protection plan that covers accidental damage done to your cell phone for a small fee per month. Also, they also include other electronics such as laptops, cameras, tablets, and more as an extended warranty.

 

Is Cell Phone Insurance Only Available Through my Carrier?

While purchasing insurance from your carrier might be the most convenient it’s not your only option.

There are a few third-party companies that offer cell phone insurance. In some cases, these plans don’t cover as wide of damages as providing insurance, but they cost less. Usually, cell phone carriers will form their plans through third-party companies anyway. 

AppleCare, for example, exists outside of cell phone companies.

I Love my Phone. Is Phone Insurance Worth It?

The decision to purchase phone insurance is entirely a personal one. 

For a single person who is diligent about protecting their property, cell phone insurance might be a waste of money. If you have money saved and feel like you could replace the phone completely should it become broken or lost, forgo insurance altogether. 

However, for a family with children, paying for insurance might be worth it, especially since children misplace or play roughly with their electronics.

Protect Your Phone

Smartphones range from several hundred dollars to over $1,000 for the newest Apple iPhone X, so wanting to protect it makes sense. Here are some ways to save money on your phone.

Buy Used

Used phones average about $100 less or more. Most people don’t have the cash flow to fund a smartphone fully, so they resort to financing which costs more over time. If the phone is gently used, and the screen cracks or any part of the phone is damaged, the blow isn’t so hard.

Build A Phone-Repair Fund

Instead of paying a company for insurance, pay yourself the dollar amount and save for a new phone, or the cost of future repairs. Think of it as an emergency fund for your phone, minus the deductible. 

Final Thoughts

Cell phone insurance plans are not for everyone, but in some cases they are helpful. The best way to decide if you need cell phone insurance is to evaluate your usage and the cost per month and year. 

Customer Priority Service is trusted by millions to help cover accidental damage to your electronic devices. We offer extended warranties and ensure you experience the best customer service. Contact us today to so we can answer all your questions.