Do You Need Smartphone Insurance? - NerdWallet

Do You Need Smartphone Insurance?


by Meredith Stacks, digital director of Protect Your Bubble

Nowadays smartphones are much more than just a piece of equipment that one uses to make a call or to send a text. Smartphones are used for checking emails, updating social media sites, playing games, keeping appointments and even creating to-do notes. A damaged or, worse yet, a lost phone can spell disaster for a great number of users.

We all wish smartphones were cheap, but in reality, they aren’t. The latest iPhone can cost $600 or more! The high price tag leaves many wondering if taking out insurance is a good idea.

Do you really need mobile gadget insurance? Here are some points to consider that can help you decide whether or not smartphone insurance is for you.

The Warranty

When you purchase a new smartphone it usually comes with a 1-year warranty. Most warranties however only provide protection against factory defects. These warranties don’t protect against accidental damage.

If you’re one of the many consumers that are prone to dropping or damaging gadgets, insurance is a good idea.

Additional Care from Manufacturers

Apple carries the Apple Care+, a 2-year plan that covers accidental damage including cracks and water damage. The coverage is good for 2 years and costs $99.00. You also pay $49 each time you send your phone to be fixed. However, this type of coverage does not include replacement for a stolen phone.

If you live in an area where theft is a concern, insurance for your expensive phone would be a wise choice.

Mobile Carriers

While Apple is the only manufacturer that offers coverage outside of the warranty mobile carriers provide additional insurance for your phones. The monthly premiums and deductibles vary carrier to carrier. But these options do cover loss and theft. The thing to keep in mind when purchasing through a carrier is that you may have a shorter window of time to opt-in to these plans. For example, you can’t enroll in Verizon’s plan if you have had your phone more than 30 days.

Third Party Vendors

With the growth of the smartphone market the need for third party insurance providers was created. Third party options are good for those that want to shop around or make the decision to ensure their device more than 30 days after the purchase date. Third party companies, like also offer single pay options that can be cheaper than the monthly premium amounts that you pay with mobile carriers.

No Insurance Coverage

Finally you can opt to not to pay for mobile gadget insurance take good care of your smartphone and hope for the best!

In the end, it is up to you to decide if the security that comes with mobile gadget insurance is worth the investment.

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