Are Cell Phone Insurance Plans Worth It? Find Out Here.

Cell phone insurance can come in handy, especially if you lose your phone or it gets damaged. On the other hand, if you are a careful person, who rarely gets scratches on your phone, then having phone insurance might be a waste of cash. In this case, this insurance might be costlier compared to repairing your phone every once in a while.

We have all been there before; we drop our phones and pray to find the screen intact. We have also all probably tucked out phones inside a container of rice to suck out the water, hoping that the phone hasn’t been damaged completely. If these instances are too familiar, then you might consider giving a phone insurance a chance.


The question remains, however, is phone insurance worth it? Whereas this might sound like a no brainer because you pay low monthly fees, it might only be worth it for some people. After all, those monthly payments can add up quite quickly. Here is how you can find out whether phone insurance is worth it.

cell phone insurance

What Does The Policy Cover?

Before you buy any insurance, you need to know precisely what it covers. You will be surprised that most companies will not pay for significant issues, which will lead you to spend more should your phone have problems. In that case, what is the point of getting insurance anyway? Also ask yourself about the claims, because if you are to replace a phone more than twice in a year, the third one might come out of your pocket.


Some policies only cover factory defects, whereas others cover theft, liquid damage, loss, and so on. As such, if you are to get a plan, get one that is comprehensive. Always read the fine print and do your due diligence; shop around before you commit to one particular policy.

Also read: 5 Top Insurance Mistakes To Avoid

What Are The Monthly Costs?

As you plan for how much you are able to pay, consider deductibles, as this will play a significant role in your calculations. If a two-year plan plus the deductible is less than the cost of your phone or even the repair, then purchasing that policy might be a good idea. Always consider their offers plus the coverage. Furthermore, to save money, you might consider buying a new phone with a warranty as opposed to purchasing a refurbished or used one.


Does Your Current Policy Cover You?

Look at the policy you are using at the moment; the chances are that your phone's issues are already protected. Most insurance covers lost devices and damaged or stolen phones, not forgetting that there are instances where deductibles come into play.

Whatever the case, you should never by more insurance than you need. Consider finding out from your current provider if your phone is already covered.

How Can You Minimize Loss Or Damage?

If a policy is expensive, then you might consider thinking of ways you can minimize potential damage. Consider buying a high-quality screen protector and a case to keep your phone safe. Regardless of the type of phone you have, you will always find a tool or two to keep it secure. Furthermore, if you are the tech-savvy kind of person, you might research how to fix small repairs on your own.

Also, note that expensive phones come with a warranty for one to two years. As such you might consider taking it back to the seller before you make an insurance claim.

phone insurance

Bottom Line

Whether an insurance policy for your phone is worth it or not is a question we will leave for you to answer. Really, it depends on your personal habits and the phone that you have. If you do get insurance, always check the fine print carefully so you know what is covered from the beginning.

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