It might be worth it to purchase cell phone insurance if replacing your phone would strain your finances. Considering the price tag on the latest smartphones, that is not unusual. Losing or stealing your phone or accidentally damaging it might be covered by insurance. Before purchasing a cellphone insurance plan, it’s best to understand the price and coverage terms.
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Cellphone Insurance: How Does It Work?
Third-party providers, such as smartphone manufacturers, carriers, insurance companies, and retailers, may sell cellphone insurance or protection plans. More insurance options work the same way. Typically, you’ll find:
- Prepay for a more extended period or monthly premiums.
- Protect yourself against accidental damage (even water damage), battery failure, theft, and loss.
- After an incident, file a claim. The insurance company may fix the phone or reimburse you for repair costs depending on the coverage.
- Each claim has a deductible, depending on your insurance plan and phone. You may have to pay a deductible.
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Cellphone Insurance: How To Decide If You
Need It
Determining whether you need cellphone insurance can be challenging, especially without a phone. According to SquareTrade, an Allstate company offering protection plans, sixty percent of smartphone owners damaged their phones in the past year. However, most types of damage won’t leave you without a phone. Most smartphone owners report having cracked or scratched their screens, and over a third do not get them repaired. Your phone replacement cost may be one of the most critical questions you must ask. It is also important to consider who will use the covered phone. It makes sense to buy insurance if you tend to be forgetful or in case of accidents.