Cell Phone Insurance – Is it Worth it?


If you happen to be accident prone, having a cell phone insurance plan seems like a good idea. After all, you are spending hundreds of dollars on a cell phone plan.

Whether you drop it in the pool (the dreaded water damage) or a power surge causes an electrical malfunction, it makes sense to cover your investment, right?

You can buy cell phone insurance at the time you purchase your new mobile phone. Cell phone carriers provide insurance coverage touting peace of mind for you in that if anything happens to your phone they’ll replace it for you. However, what’s sometimes lost in the fine print might make your jaw drop.

Is phone insurance coverage a good idea? Here are some factors to keep in mind when considering an Android or iPhone insurance plan.

In This Guide
* Replacing Your Phone Can Be Expensive

* You’re At Their Mercy for Replacement Phones

* Insurance Companies Drop Problem Customers

* Buy Insurance Directly Through the Provider

* Do I Have Alternatives?

* Cell Phone Insurance Recap

Replacing Your Phone Can Be Expensive

Since insurance providers can never have enough of your money, they add a deductible to your cell phone coverage. This non-refundable deductible is the amount you pay before they process the insurance claim. Below is a look at the deductible amounts charged by each carrier’s plan:

  • Verizon – $99-$199 for smartphones; $49-$199 for basic phones and tablets
  • AT&T – The starting deductible ranges from $50-$199, though if you don’t file any claims for a specified time you can receive up to a 50 percent discount on your deductible
  • Sprint – $50-$100
  • T-Mobile – $20-$175

Therefore, when you sign up for one of these plans, not only are you paying a monthly fee, you’ll pay a non-refundable deductible as high as $200 for a replacement phone. That math is not in your favor, especially if you chose to buy your new phone on a contract plan. This value distends further when you consider your replacement phone might not even be new.

MoneySavingsPro, excerpt posted on SouthFloridaReporter.com, April 17, 2017

At MoneySavingPro our research, analysis, reviews and comparison helps thousands of consumers save money by finding the best products and services. See Methodology When readers choose to buy independently chosen editorial picks, we sometimes earn affiliate commissions to support our work.