5 Ways Cell Phone Insurance Saves You Money
Not long ago we only used cell phones to make calls or send cryptic, shorthand text messages. Now, phones have become such a vital part of our lives that many people sleep with them. So when your phone is lost, stolen, or damaged, it can cause major life disruptions. That’s why cell phone insurance is more crucial today than ever to get you and your phone back up and running quickly.
When it comes to choosing the best insurance for your cell phone, consider this:
Despite premiums and deductibles, insurance still saves you money.
The average retail price of a new smartphone is $590; even higher for a basic iPhone 7 ($649). More than 70% of phone claims are filed within the first year, according to Asurion claims data. This means that customers with phone insurance who file a claim at month 12 on an iPhone 7 can save $318 – $342 on a replacement phone after premiums and deductibles.
Protection plans are not created equal.
Most aftermarket “protection plans” are simply extended warranty plans which only cover accidental damage and malfunctions. Only a cell phone insurance and extended warranty bundle – available through most wireless carriers – covers loss, theft, damage, and mechanical and electrical failures. This is important because one in four phone claims last year were from loss or theft*
Cracked screen? With insurance, you can repair your phone fast and for less.
Most cell phone insurance programs through wireless carriers include cracked phone screen replacement with a lower deductible than what you would pay for a replacement device. The deductible is usually less expensive than taking your phone to a repair shop. For extra convenience, in some markets insurance programs available through your wireless carrier will send a technician to your home or office to repair the cracked screen.
Without insurance, you might have to pay for TWO phones.
Shoppers now pay the full cost of their phones either up front or in monthly installments. If you are purchasing by monthly installments and you lose, break or have your phone stolen before you’ve paid it off, you’ll still have to make the remaining payments. What’s more, without insurance you could be left with both the remaining installments and the payments for a new phone. With a 32GB Samsung Galaxy S7 Edge, at 6 months a customer could still owe nearly $550 on their old phone while trying to pay for a new one.
Cell phone insurance provides extra protection for replacement phones.
Most cell phones come with a 1-year warranty against malfunction. But what happens when you lose, break or have your phone stolen and need a replacement? Not only will insurance from your carrier replace your phone fast, it will usually protect your replacement phone with a new 1-year warranty that starts the day you receive it. So, you end up having warranty coverage for longer than if you’d kept your original phone.
*Asurion 2017 Claims Data