Gone are the days when a cell phone was just for calls and texts. Now, you can do so much more from your phone, including arming a security system, creating presentations, and paying your bills through an app.
As smartphones have become more a part of everyday life, they’ve also skyrocketed in cost. Today, a cell phone can easily cost more than $1,000.1 If your phone breaks, repairs can be expensive, and replacement costs can run in the four figures. A minor accident causing a broken screen can cost anywhere from $50 to $350 to fix.2
The best cell phone insurance plans can help provide peace of mind for a relatively low cost, and you can buy plans for new or used phones.
Insurify evaluated leading insurance companies and plans and selected AppleCare+, Verizon Wireless Phone Protection, and Akko as the top providers of cell phone coverage.
Out of all the companies considered, these providers had some of the cheapest options, with plans costing between $5 and $10 per month.
All three companies also had easy online claims processes and offered perks like low deductibles and next-day replacement.
You have several options for purchasing cell phone insurance. Device protection options include coverage through your phone manufacturer, your cell carrier, or a third-party company or credit card issuer.
When you buy a new phone, you usually can purchase a manufacturer protection plan like AppleCare+ or Samsung Care+. But eligibility is usually exclusive to phones enrolled within 60 days of the purchase date. These plans usually provide protection beyond the manufacturer’s warranty, covering damages related to theft, drops, and spills.3
Your cell phone carrier may have a protection plan you can add to your service. For example, you can purchase a protection plan through carriers like Verizon, AT&T, and T-Mobile. Plans from carriers are often relatively inexpensive and can provide perks like global coverage for losses you experience while traveling.
Stand-alone or third-party insurers like Akko, Worth Ave Group, and Upsie sell cell phone insurance as individual products. An independent cell phone insurance company can be a good option for people who purchase used or secondhand phones. You can usually choose from several plan tiers to fit your budget.
Some credit cards give cardholders cell phone protection as an added perk. To qualify for coverage, you must use the credit card to pay for your cell phone bill each month. Credit card cell phone insurance policies usually protect against theft or damage, up to a preset maximum each year.
Although plan coverages vary, cell phone insurance usually covers accidental damage, such as drops or spills, as well as theft. Cell phone policies can come in handy in the following scenarios:
Cracked screens: If your phone gets knocked off the table by accident and the screen breaks, the insurance plan will pay for screen repairs or replacement.
Liquid submersion: If your phone gets knocked into the pool while you’re swimming, your plan would pay to replace it if it has water damage.
Loss or theft: Your phone was stolen during your commute home on the train. If you file a police report for the phone theft, your plan would pay for a new phone.
Mechanical damage: If your phone has a mechanical or electrical breakdown, your plan will cover your repair costs.
Cell phone insurance can come in handy, but it won’t cover everything. Plans usually have a list of exclusions in their terms and conditions.
These are some of the most common exclusions:
Damages related to wear and tear
Software defects
Viruses
Unauthorized repairs
Theft if not reported to the police within 24–48 hours
Repairs or replacement costs that exceed the plan’s reimbursement limits (depending on your device’s value, you may have to cover some of the cost yourself)
Phone insurance is usually a monthly cost, and policies can range from $8 to $20 per month. If you have several devices or want to insure family members’ phones, you may benefit from a multi-device policy, which can be more cost-effective than buying plans for each individual device.
A deductible will apply for most issues. Depending on the coverage provider, plan, and claim type, claim deductibles can range from $0 to $279.
Here’s a breakdown of the premiums and other costs of some of the most popular cell phone insurance plans.
You can choose from many different kinds of cell phone protection plans or insurance policies, but their coverages, deductibles, service fees, and exclusions may vary.
Here you can learn more about certain plan types.
If you purchased a new iPhone, you can buy AppleCare+ within 60 days of your purchase date. The deductible is $29 for screen damage and $99 for most other repairs. If your phone is lost or stolen, the deductible is $269.
If you purchase insurance through your carrier, you may qualify for cheaper coverage, tech support, and cloud backups. Wireless carrier insurance plans tend to be best for people with new devices purchased through the carrier.
Third-party companies, like Akko and Worth Ave Group, are usually best for people who purchased their phones secondhand or have several phones to insure. You can often get a multi-device protection policy for a relatively low price from an independent cell phone insurance company.
Your homeowners or renters insurance can protect your phone against damage related to natural disasters or theft, but it won’t cover mechanical failures, screen repairs for dropped phones, liquid damage from an accident, or wear and tear.
Credit card or debit card cell phone insurance is a good option if you use your card to pay your cell phone bill, because you automatically get coverage at no added cost. Review your card agreement for details on coverage, deductibles, and how to file a claim.
Although cell phone insurance isn’t required or mandatory, it can come in handy when you have a pricey phone. Whether it’s worth the cost depends on your phone’s replacement cost, your risk tolerance, and how much of a financial cushion you have in your savings account.
Below is a guide to help you make a decision.
The best plans and insurance options for you depend on your phone, carrier, and smartphone insurance needs. Here, you can see which company is a good fit for each option.
With some phone plans, such as AppleCare+ coverage for iPhones, you must enroll in a plan within 60 days of purchasing your device. After that, the only way to get coverage is to purchase a plan through another company, such as Akko or Worth Ave.
With third-party insurers, you can enroll in an insurance plan online or by calling the insurer directly. The company will ask for your phone make and model, give you several plans to choose from, and ask you to pay your first premium.
If you’re buying a used or secondhand device, document its condition. Take photos of the phone to show any cosmetic issues, and keep a record of any problems.
To start the claims process on a cell phone insurance policy, follow these steps:
Review your policy documents for coverage specifics on the claims process. Some phone insurance providers have coverage limits or reimbursement limits for certain repairs or require you to visit only an authorized repair shop.
Cell phone insurance is an added cost. If you want to avoid ongoing insurance premiums, your other options include:
Invest in a strong protective cell phone case. Cases can cost anywhere from $40 to $100 and can protect a phone from damage related to drops, falls, and liquid damage. Though cases can prevent screen cracks or other basic damage, they don’t provide device protection for issues like theft or mechanical breakdowns.
Purchase a DIY repair kit. You can buy repair kits online and use tutorials on YouTube or TikTok to learn how to do basic repairs, like replacing a broken screen. But this option doesn’t pay for replacement devices if your phone is beyond repair.
Utilize tempered-glass warranties. Some phones come with warranties for their tempered-glass screens, or you may be able to purchase a warranty for a nominal fee. These plans will pay for screen repairs but not for other damages.
Build an emergency fund. Building up a safety net in a savings account can help cover unexpected repair service fees or the cost of a new cell phone.
If you’re still on the fence about purchasing cell phone insurance, the following information can help you make the right decision for your needs and budget.
Yes, you can purchase cell phone insurance for phones you purchased secondhand. You’ll likely need to go through a third-party phone insurance company.
Although renters and homeowners insurance policies provide some coverage for cell phones, they’ll reimburse you only for covered events, such as damage related to a fire or theft. On the other hand, mobile phone insurance policies provide theft coverage, loss coverage, and coverage for accidental damage, such as a cracked screen from dropping your phone.
The maximum number of claims varies by insurance company and plan. With some, you’re limited to two claims per year, while others allow for unlimited claims.
How your insurer handles your claim depends on the plan. Typically, you’ll receive reimbursement up to a set limit, and the company will replace your phone with a refurbished version, if available. If no refurbished option exists, you’ll get a new phone up to the plan’s maximum limit.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
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