According to surveys, around 33% of smartphone owners have lost or broken their phone. If the thought of this happening to you worries you, it's worth considering phone insurance.
But what does smartphone insurance cover? How much does it cost? And is cell phone insurance worth it? Let's find out.
Why You Need Cell Phone Insurance
Most people come to the end of their cell phone contract with little more than cosmetic damage to the handset. Others aren't as successful.
We've all heard of people dropping their phones down drains, toilets, or sinks. Likewise, devices have fallen from bridges, railway platforms, car roofs, strollers and even boats. Then there is the risk of smartphone theft to consider.
While dedicated smartphone apps can protect an Android device from theft, iPhone owners can use the Find My iPhone app. But if a phone was stolen and wiped clean, you'll never see it again.
This is where telephone insurance comes into its own.
What does telephone insurance cover?
By purchasing insurance for your phone, you can be covered for:
- Accidental damage including cracked screens and water/liquid damage
- Loss
- Flight
- Mechanical failure
- Malfunction not covered by warranty
Paying for mobile phone insurance for your Android smartphone or iPhone gives you peace of mind. You can be sure that if lost, stolen or damaged, your phone will be replaced or repaired.
Note, however, that the insurance policy often has an excess that must be paid as a contribution to a claim. It's usually around $99. You may prefer to avoid insurers that charge an excess, extra cost, or deductible.
iPhones and other high-end devices (such as the Samsung Galaxy S line) generally attract a higher premium. This is due to the fact that they are highly desirable items and more likely to be stolen. Keep in mind that insurers will charge more and likely apply more extensive claims review for these phones.
So, before signing up, think about the risks to your phone. If you forget, loss or theft may be wise; for clumsy and accidental damage coverage.
Will telephone insurance companies pay?
Being insured, however, is only one side of the coin. The real trick is to make the insurers pay. Increasingly, insurers are less and less interested in paying and more in not fulfilling their role. While sales literature makes insurance interesting, the fine print is another matter altogether.
For example, if your cell phone is stolen from an unoccupied table in a bar, you can expect insurers to be unhappy to pay out. However, the same is often true if the table is fully occupied and the device is surreptitiously moved away unnoticed.
You may well find that such errors will lead insurers to refuse to pay. Add an extra layer of protection by using the best mobile phone tracker for your device.
Best insurance for iPhone and Android phones
The first option to take to insure a smartphone is to check what the warranty covers. Theft and throwing the phone in the toilet are unlikely to be covered, but mechanical and electronic breakdowns likely will be.
If that's all the protection you need, great! Otherwise, consider extending the warranty with a protection package from Asurion.
ASURION 3-Year Portable Electronic Accident Protection Plan with Tech Support
Asurion Mobile Phone Insurance offers several coverage options for smartphones and tablets that no longer work. Asurion offers a simplified insurance program that essentially extends your manufacturer's warranty. The Asurion Base Package covers:
- Surge
- After Manufacturer's Warranty:
- Mechanical / electrical failures
- Defects in materials and workmanship
- Failures due to normal wear
- Failures due to dust, heat, humidity
- 27/4 technical support
- Device replaced or purchase price refunded as an Amazon gift card
From there, it can cover you for different issues depending on your device type. For example, “drops, spills, and cracked screens” are “covered from day one” with some policies, but not others.
Accordingly, it does not cover drops, cracked screens, liquid damage, loss, theft, cosmetic damage if the product is still usable, replacements of consumables or breakdowns covered by the warranty.
It may seem inflexible, but if you're primarily concerned with manufacturer warranty limitations, Asurion may be a good choice. You may have heard of Asurion, which provides insurance services to networks like AT&T and Sprint.
Helpfully, Asurion offers insurance packages at different price points.
For example, there's the ASURION 3-Year Portable Electronics Accident Protection Plan with Tech Support package, which offers the basic coverage above. It also protects against drops, spills and cracked screens.
AppleCare+
Bought an iPhone? Default repair coverage is just one year, but you can extend it with AppleCare+ and AppleCare+ with Theft and Loss .
- AppleCare+ compensates for up to two incidents of accidental damage, every 24 months. Each incident is subject to service charges and taxes.
- AppleCare+ with theft and loss covers the same, plus theft or loss.
So, for example, screen damage will cost you $29 to repair. It's about the same as you would pay at a local phone repair shop.
Note that AppleCare+ with Theft and Loss comes with several deductible fees. Check the AppleCare+ website for the latest pricing.
eSurranty
A great option for buying coverage for any premium phone, eSurranty offers policies for iPhone, Samsung, and Google Pixel devices.
Packages are available for damage, loss and theft, the latter commencing after 45 days from the start of the policy. There is also the option of an express replacement, although a deductible charge is added for most replacement needs.
eSurranty coverage is transferable – useful when upgrading to a new device. Note, however, that claims are limited by type.
Samsung PremiumCare
If you use a Samsung phone, you can rely on the warranty or upgrade it with the Samsung Premium Care protection plan. Two plans are offered, a $99 plan for Galaxy S devices and the $129 plan for other flagships (like the Galaxy Note). Monthly payment options are available.
While phone-insurance companies typically offer courier service, Samsung offers the option of sending the device in or in-home repair.
In our experience, home repair (in which a third-party repair team is engaged) is fraught with supply chain and reliability issues. It's usually better to send the device back than to wait at home repeatedly and hope the engineer has the right parts for the repair.
Get protection against device theft and damage
Electronic insurance for other devices is also available. For example, if you want to protect a printer or desktop computer against failure with Asurion, you can purchase the 3-year ASURION Electronic Protection Plan .
Meanwhile, if you need device insurance for the office, Asurion can help, too. It offers ASURION 4-Year Office Equipment Protection Plan for office equipment.
In truth, for cheaper phones, you probably won't need phone insurance. Cell phones that are cheaper than the extra charge aren't worth insuring, after all. But if you have an expensive Android or iPhone, insurance is a smart move. It protects your purchase, gives you an affordable replacement, and gets you back online quickly.
The best cell phone insurance for you
Whatever happens, if you want to buy insurance for your electronic devices, take your time. Choose the best offer for your device, your usage and your budget. This may mean using the suggestions above or seeking phone insurance from companies with products that are right for you.
Don't have phone insurance but have a cracked screen? Here's how to replace a damaged phone screen yourself.
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