Is Phone Insurance Worth the Money?

Moneymagpie Team 25th Oct 2022 No Comments

Reading Time: 3 minutes

When you want to look up something fast, call a friend or relative, connect on social, or manage a quick financial transaction, in the modern setting, it is all smartphones. The convenience is unmatched, especially in today’s fast-paced world. So, what happens if you accidentally damage the phone or lose it? How long can you stay without it, or better yet, do you have cash on standby for a replacement?

Taking into account the phones’ cost, consumers consider insurance as a valuable investment and a money-saver in case the gadget gets damaged or lost. It’s a trend that continues to hit new highs, but should you also hop on the bandwagon?

Online reviews may give you a glimpse of what continues to drive more consumers to phone insurance. As Asurion reviews show, customers complain about improper device repair and difficulties to talk to a company representative. Let’s look at phone insurance basics to help establish if it is worth the money.

What Does Phone Insurance Cover?
What Does Phone Insurance Cover Besides The Hardware?
How Do You Choose Phone Insurance?
The Bottom Line

What Does Phone Insurance Cover?

At its core, basic phone insurance covers damage or loss. For instance, the insurance can cover the repair cost if you accidentally crack the phone’s screen or drop it in the water. Your insurance can pay for the replacement of a device if you lose it, including theft.

Nonetheless, the coverage is subject to the given terms and conditions. For instance, you may not be reimbursed if the phone was lost as it was left unattended or if the damages were caused by your careless gadget usage.

What Does Phone Insurance Cover Besides the Hardware?

Hardware, including the phone’s accessories, isn’t the only thing the insurance can cover. Some policies go the extra mile to offer protection against unauthorized calls, music, games, and apps, among other content. Each policy is unique; as such, you need to do proper research as you shop around to ensure you pick insurance in line with your needs. Some offer extensive coverage but could also include exclusions that may be a priority in your case.

How Do You Choose Phone Insurance?

As you shop around and compare the prices of phone insurance offered by different companies, consider these top factors before you make your final decision.

Consider Your Needs

How often do you break or lose a cell phone? If you can use the same device for an extended period without damaging or losing it, then phone insurance may not be worth the money. The gadget’s price also counts. If you invest in costly cutting edge-devices, replacing a lost or damaged one can cause significant financial loss.

Your needs dictate whether you should buy phone protection and if investing in an insurance policy is financially wise in your case. Additional protection may be a waste of money if you can effortlessly replace the phone. However, if you live in a neighborhood with a high crime rate and own pricey gadgets, the peace of mind granted by the insurance is worth the money.

Read User Reviews

Consumer reviews are a great source of valuable information on a coverage policy, and its pros, and cons. Review websites such as PissedConsumer.com help you gain a less-biased opinion about a company. This makes it easier to know what to expect if you invest in phone insurance from the provider. Look for information on costs and customer service, and stay away from insurance companies with consistently poor ratings.

Choose the Coverage Type

Is phone insurance worth it if offered by the manufacturer, independent service, or as a combo? Manufacturers’ services tend to be a bit pricey but mostly offer better coverage. Independent insurers can offer competitive rates. Nonetheless, they may not provide the flexibility needed in your unique situation.

Including the phone in your home insurance is a worthy consideration. However, it would be best if you read the fine print because the terms may not be that flexible. For instance, the phone might not be covered if you lose it outside your home.

Self-insurance is also a worthy strategy. You can deposit a monthly amount in a high-interest account and accumulate enough for phone repairs or replacement. The downside with the approach is that you might lose or damage the phone before accumulating enough money.

The Bottom Line

Phone insurance is worth the money, provided you select a policy aligned with your needs and budget. It may initially seem like an unnecessary expense, but considering how financially frustrating replacing or repairing a phone can get, insurance is worth every penny.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence

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