A beginner’s guide to phone protection plan deductibles and service fees

If you've ever cracked your phone screen, dropped it in water, or had it mysteriously vanish during a night out, you know the feeling: panic meets frustration meets financial stress. That's where phone protection plans can come in handy. “Deductible” or “service fee” is a term you’ve probably seen but maybe don’t fully understand.

Whether you're shopping for smartphone protection plans or trying to understand what your current plan actually covers, here's some information about how phone protection plan deductibles and service fees work, why they exist, and instances when you might need to pay one.

What is a phone protection plan’s deductible or service fee?

A phone protection plan’s deductible or service fee is your share of the claim cost when something happens to your phone. It’s a pre-determined amount you pay in connection with a claim to repair or replace your device.

Let’s say you have a cracked screen. You start a claim with your plan provider. If they approve your claim, then you might pay a set amount (your deductible or service fee) before getting your phone fixed or replaced. The protection plan company may cover the rest, depending on the terms of the plan.

How is a deductible or service fee different from a premium or plan price?

Your premium or plan price is what you pay for coverage in the event your device experiences a covered loss. The deductible or service fee is what you pay when your provider approves a claim, and a deductible or service fee is owed. While your premium or plan price keeps your coverage active, the deductible or service fee gets your phone repaired or replaced when your claim is approved after something goes wrong.

When do you pay a deductible or service fee?

You’ll usually pay a phone repair or replacement deductible or service fee at the time of a claim in situations like:

• Cracked or shattered screen
• Water or liquid damage
• Loss or theft (insurance only)
• Battery or hardware failure, or malfunction after warranty expires

Whether you're getting a repair or a complete replacement, you’ll likely need to pay a fee, though the amount may vary.

Repair vs. replacement

Depending on your coverage and the nature of the incident, your plan provider will repair or replace your device. Here’s the difference:

• Repair: Generally, repairs have a lower deductible or service fee, and for some protection plans, it can be as low as $0 for certain repair types. Repairs include fixes like screen repairs or battery replacements.
• Replacement: Generally, replacements have a higher deductible or service fee. A replacement will be required if your phone is beyond repair or (if your protection plan includes insurance) has been lost or stolen.

When don’t you pay a deductible or service fee?

You may not be required to pay a deductible or service fee if you’re dealing with a manufacturer’s defect that falls within the warranty period. Often, third-party phone protection plans require a deductible or service fee for damage, theft, or loss (if covered). Check your plan; many programs have deductibles or service fees as low as $0 for certain repairs like cracked screens.

How much is a service fee or deductible?

Deductibles and service fees are not one-size-fits-all. They can vary depending on:

• Your phone model. Newer or premium phones typically have higher deductibles or service fees.
• Type of claim. Cracked screen? Generally, a lower deductible or service fee. Lost phone? Generally, a higher deductible (insurance only).

Is a protection plan worth it even if you may have to pay a deductible or service fee?

It depends on your situation and what you value. Let’s do some math.

If your phone costs $1,000 and your deductible is $150 for a replacement, that’s much less than buying a new device out of pocket. Add that to a reasonable monthly premium, and protection could potentially save you serious money if the worst happens.

And the money math is just part of the protection plan value. Many protection plans offer additional services that will help you avoid time, stress, and hassle, such as handling the replacement or repair process for you and providing tech support for your new and existing devices.

If you’re still unsure, check out Asurion’s guide: Is phone insurance worth it? Phone protection plan deductibles and service fees can make a big difference in how much you pay when your phone needs help. Understanding how phone protection plan deductibles and service fees work can better prepare you to choose a plan that protects your phone and wallet.

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FAQ

What is a deductible or service fee on phone protection plans?

A deductible or service fee is the amount you pay when your claim is approved and you need to repair or replace your phone. It’s separate from your monthly plan price.

Do I have to pay a deductible or service fee for every claim?

It depends. Many phone protection plans require a deductible or service fee for each approved claim, whether it’s for damage, malfunction, loss, or theft (if covered).

Why is my deductible or service fee different from my friend’s?

Deductibles and service fees vary based on phone model, type of damage, provider, and plan. Your friend's coverage situation might be different from yours.

How do I find out what my deductible or service fee is?

Check the specific terms for your plan.