Insurance on Your Phone; is it Worth it?

Insurance on Your Phone; is it Worth it?

We are in a day and age when our phone is almost an extension of our hands and is something we rely on all day long to help us live our lives.

We always have them close-by and we have a hard time getting through a simple dinner without at least checking it once. These days, most phone providers have gotten away from the “new every two” formula and are allowing their customers to make monthly payments on the newest phones on the market. For techies and the people who get bored easily, this was awesome news. People no longer had to wait until their phones were virtually unusable anymore.

Keeping Phones Longer than Ever

The problem with this option is that the stakes are a little bit higher. While a traditional phone plan allowed the phone to become obsolete and depreciate over time, the new plans make our phones valuable for a longer period of time.No longer have we paid upfront for a phone. We owe the phone company money and we’re essentially leasing a phone for one to two years. During this plan, however, the phone company does not require us to purchase the insurance they offer. So, what happens if the phone falls into a pot of water or the screen shatters when it falls to the ground?

Maybe You Should Buy the Insurance

If the phone is damaged while we are still making payments, we owe the entire payoff to the phone company. You’re not off scot-free, unfortunately. You have options, but they’re not great. Many people don’t bother with the insurance on a brand-new phone for themselves; sometimes for their kids, but rarely for themselves. It’s akin to buying the extended warranty on an electronic device or an appliance; we probably should do it, but we don’t. It’s impossible to know what is going to happen, but shouldn’t we try and be prepared?

Your Phone is Covered

One of the advantages of having insurance on your phone is that you’re covered in the case of an emergency. Depending on the coverages you elect to carry, almost any type of damage can be covered. There are different types of insurance for almost every situation that could happen to your phone. Most insurance companies make it pretty simple to file and claim and get your phone replaced as quickly as possible. In this case, certainly, the insurance is advantageous.

Maybe You Don’t Need the Insurance

However, one of the downfalls of the insurance purchase is that it requires an additional monthly fee on top of an already costly bill. Often cell phone insurance requires a deductible as well, in order to get your phone replaced. Perhaps the biggest downfall, although, is that it’s incredibly rare that you would receive a brand new phone. For people who bought and are trying to pay off the newest phone on the market, this is a deal-breaker. It also tends to be the number one reason that people refuse insurance.

The Phone Company Makes All the Rules

If your phone is lost or stolen, the insurance company makes the choice about the replacement of your phone. They try to replace the phone with a certified refurbished unit (which can be just as good as new, if the right checks and balances are maintained) that is the exact phone that you’re trying to replace. However, if they don’t have any of that phone on hand, they choose the phone that replaces yours. For customers who shelled out the money for the iPhone X, chances are, you’re going to want the same one back.

Make the Right Choice Today

In most instances, having insurance on the phone as it is a lot less expensive over time than having to shell out the money for a brand new phone. However, if certified refurbished is a deal-breaker for you, then it’s probably not worth the cost. Ultimately, the decision is up to personal preference, but if your phone is an extension of yourself, then you should probably protect it accordingly.

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