Do I Need Insurance For My New Smartphone?

Smartphones are becoming more capable, and in turn more expensive, seemingly by the week. Consumers are no longer shocked when a new phone debuts with a price tag of more than $2000. Unfortunately, the higher price does not make owning a smartphone any less essential for the average American consumer. As a result, an increasing number of people find themselves faced with the question: Do I need insurance for my new smartphone?

Insurance policies for smartphones are usually purchased through a carrier. Verizon, AT&T, T-Mobile, Sprint and Apple all offer robust insurance policies. There are third-party services that also offer comparable plans; Best Buy is one of the most popular.

The truth is that smartphone insurance is often not the quick fix solutions that consumers want it to be. However, it can save someone a substantial amount of money should an accident befall their phone.

The most important research a consumer can do is to read the fine print of a smartphone insurance policy before they purchase it. Smartphone policies are infamous for fine print. Stolen phone? That might not be covered. Cracked screen? That might have its own separate deductible. This isn’t to say that a smartphone insurance policy isn’t a good idea, but it is imperative that the consumer understand what exactly the policy they purchase protects.

There are a few key factors that every consumer should consider before purchasing a smartphone insurance policy:
– Total value of phone
– Does the total value of your phone exceed what an insurance policy will cost you? Does the policy offer enough coverage to cover the full value of the phone?
– Monthly cost of insurance policy
– How many months will it take until you reach the full cost of your phone?
– Deductible cost
– Is the deductible more than the cost of your phone?

Logan Abbott, president of Wirefly, spoke with Consumer Reports about smartphone insurance policies. “Cell-phone insurance is really confusing,” said Abbott. “Some carriers offer three or four plans with different levels of coverage, deductibles, and limits. It’s hard for people to know when it’s worth paying 15 bucks a month for a plan, and if so, what it should cover.”

The bottom line is this: do your research. If you have an expensive smartphone, and can’t afford a replacement, finding the appropriate smartphone insurance policy can save you a lot of money. However, it’s important to remember that not all policies are created equal. Do your research, and find a plan that fits your lifestyle, and your budget.

Sources:
https://www.consumerreports.org/insurance/is-smartphone-insurance-worth-buying/

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