Pros and cons of cell phone insurance

Cell Phone Insurance

When you look at how much cell phones can cost these days, it's easy to understand why some people are willing to invest in cell phone insurance. However, this optional insurance is not practical for everyone. Your decision should be based on a consideration of a number of factors specific to your individual circumstances. A great start is to weigh out the advantages and disadvantages. Here are the pros and cons of purchasing cell phone insurance.


Mistakes happen

Statistically speaking, there is a considerable chance that you will need to rely on the backup of your cell phone insurance coverage at some point or another. As a matter of fact, one out of every three cell phone owners either lose or damage their cells phones within the first twelve months of purchase.

Cell phone insurance is not very expensive

You can expect to spend only a nominal monthly amount - usually somewhere around $5 - for cell phone insurance coverage. Compared to the several hundred dollars you can spend on a cell phone, the cost of insurance seems almost negligible.

Peace of mind

Many people are unclear about how their warranties work, and for how long their phones might be covered under a warranty. Having cell phone insurance is having the peace of mind that comes with knowing you will be able to replace your lost, stolen, or damaged handset for a brand new one, regardless of the provider's warranty policy.


You might end up overspending

In some cases, it is possible that you could actually end up spending more on insurance than it would actually cost you to just replace the phone, especially when you take into account the deductible amount (which varies, but can be anywhere from $45 to $150). It is easy to see how $5 per month over a period of three years, plus a deductible, is unnecessary overspending if your phone is only worth $200.

Filing a claim can be a hassle

You may have to go to certain measures to prove your claim, and then you still have no way of knowing for sure that your claim will be approved. Sometimes the convenience of just buying a new phone in the event that something bad does happen is worth the added out of pocket expense.

Read: [Flood Insurance] Its Importance and Benefits

As you can see, there are a number of factors to consider when deciding whether or not to purchase cell phone insurance, and making the wrong decision can end up costing you hundreds of dollars. Is cell phone insurance right for you? Consider these pros and cons before you make that choice.
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