If you have a cellphone, you may want phone insurance, which can pay to repair or replace your phone if you damage it. And considering many phones cost upward of $1,000, it’s worth considering phone protection.
Phone insurance covers most accidental damage and theft and is relatively affordable. You can usually purchase plans for less than $10 per month. But because each plan differs depending on your provider, it’s important to read the fine print.
Here’s what you need to know about phone insurance, including what it covers, how much it costs, how claims work, and more.
Phone insurance — also known as a phone protection plan — is a type of insurance that pays to repair or replace your mobile device in cases of accidental damage and theft. The exact coverages can vary from plan to plan.1
Phone insurance often covers damage that a warranty doesn’t, including accidents. It can also continue to protect your phone after your warranty has ended.
Phone insurance is available through many different sources, including phone manufacturers (AppleCare, for example), phone plan carriers, and insurance companies. The coverage your plan offers and the average cost may vary depending on the provider you choose.
Phone insurance works similarly to most other types of insurance. You pay a monthly premium, and in exchange, your insurance company offers certain coverage.
Phone insurance covers a variety of problems, including cracked screens, liquid damage, theft, loss, and more. If your phone sustains damage that your plan covers, you can file a claim directly with your insurer, and it’ll pay to either repair or replace your phone.
Like other types of insurance, phone insurance may require a deductible or service fee, which is your out-of-pocket share of the cost. Then, your insurance company should cover the rest, subject to any policy limits in place.
Let’s say you drop your phone, and the screen breaks. It costs $250 to fix, and your plan has a $75 deductible. You’ll pay the first $75 for the repairs, and your insurer will pay the other $175.
The repair or replacement process may vary by provider. For example, if you’re using AppleCare to cover your repairs, you’ll have to get the repairs directly through Apple. Other providers may have their own restrictions in place. If the damage is severe enough that you’ll need a new phone, your insurer may provide you with a refurbished one rather than a brand-new one.2
Your phone insurance coverage varies depending on your chosen company. Some insurance plans have an explicit list of damages they cover, while others simply cover all accidental damage and list anything they don’t cover.
These are some damages your plan may cover:3
Battery failure
Broken or cracked screen
Damage from spills or drops
Liquid damage
Mechanical or electrical failures
Natural disasters
Power surges
Theft or vandalism
In addition to listing what the plan covers, most insurers have a list of exclusions they explicitly won’t cover. This list will vary from one company to the next.
Here are some examples of common exclusions:
Cosmetic damage
Criminal acts
Intentional tampering or modifications
Neglect or failure to prevent damage
Normal wear and tear
Software viruses or defects
Generally speaking, your policy won’t cover any intentional acts. For example, if you intentionally damage or lose your phone in the hopes of getting a new one and your insurer suspects this is the case, it may not cover the replacement.
The cost of phone insurance typically ranges from around $8 to $14 per month, though premiums could be higher or lower with certain insurers. The average cost is around $10 per month across insurance companies, phone manufacturers, and phone plan providers.
The cost of phone insurance may vary depending on several different factors, including:
Phone(s) covered
Provider
Coverage amount
Deductible
Plan term
As a general rule, the more robust the plan in terms of coverage limits and types, the more you’ll pay for coverage. The table below breaks down the average cost of some of the top providers.
Every financial product, including insurance, has some advantages and disadvantages. Before you buy a policy, it’s important to weigh all the factors to determine if it’s the right choice for you. Here are some pros and cons of phone insurance worth considering.
If you’re in the market for phone insurance, you have a few different options for how to purchase it. You can typically purchase a plan from:
When you’re ready to purchase a plan, start by shopping around and comparing your options. For example, if you have an iPhone on a plan through Verizon, your options would include AppleCare, a Verizon protection plan, and a stand-alone plan offered by a third party.
Some things to consider when comparing plan options include:
Monthly premium
Policy term
Deductible
Included and excluded coverages
Coverage limit
Claims process
Repair locations/options
Before you buy a policy, make sure to check whether you already have coverage elsewhere. Some homeowners insurance policies cover cellphones or offer phone protection as an endorsement. Additionally, some credit cards offer phone protection. Just make sure to read the coverage restrictions to ensure the plan provides everything you need.
Here are the answers to some frequently asked questions that may help you find the right phone insurance policy.
Devices eligible for coverage may vary depending on your insurance plan. Types of devices you may purchase coverage for include mobile phones, smartwatches, tablets, and laptops.
Some insurance plans automatically transfer your coverage to your new phone if you upgrade. Other insurers may require a new plan or a higher premium. For example, AppleCare charges a different monthly premium depending on your specific phone, so upgrading would likely require you to get a more expensive plan.
A deductible on a phone insurance plan works similarly to any other insurance deductible. It’s an amount you’ll have to pay out of pocket when you file a claim, while the insurance policy covers the rest. Some plans have a flat deductible, while others charge a different amount depending on the type of claim.
Typically, yes. You can usually get phone insurance after your purchase. For third-party plans, you may be able to sign up at any time. But plans through a phone manufacturer or phone plan provider may require you to purchase your coverage within a certain number of days of buying your new phone.
It depends. Whether phone insurance is worth it varies from person to person. If you have an expensive phone and end up needing to replace it, the relatively low monthly premium for a phone insurance plan will likely seem worth it. On the other hand, if you pay the monthly premium for years without filing a claim, it may not seem worth it.
Consider running the numbers to see whether you can afford to replace the device out of pocket and how many months of premiums it’d take to cover the cost of replacing your phone.
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