With the recent releases of both the iPhone X and the Galaxy Note 8, many of you may currently be navigating the daily operation of your new cell phone. Whether you are a user of Apple or Android, a cell phone insurance plan for your device exists. But should you even bother to insure your phone? And what type of insurance plan would be right for you? Read on to find out.
What Should I Keep in Mind When Thinking About Cell Phone Insurance?
The decision on whether or not to purchase cell phone insurance is truly yours, but there are a number of things you should consider. How much did you pay for your cell phone initially? Do you lead an active lifestyle? Are you always on your phone? Are you a klutz? Maybe you’re careful? Even if you are super careful, accidents always have the possibility of occurring, which is why insurance exists in the first place.
While you may be able to first obtain your phone for free or a very discounted price when signing up for a service plan, the cost to replace or repair it can be a lot more. The cost to outright purchase the iPhone X, for example, starts at $999, and then the price goes up from there. Similarly, the Galaxy Note 8 starts at $960. If you didn’t have insurance and had to replace a damaged or lost cell phone yourself, would you even have the funds available to do so?
The lowest monthly cost protection plans are little more than extended warranties, and usually only cover mechanical failures of the device. With an extended warranty, there is no protection if your device is lost, stolen, or damaged. The monthly cost for an extended warranty is usually between $3 to $5, which is the lowest you’ll see, but since you also aren’t buying much protection, you’ll have to consider if this kind of coverage is actually worth it.
Cell phone insurance that covers for theft, damage or loss is the next most expensive option. This usually costs between $8-$10 a month, depending on your carrier. Since it covers more potential situations than just an extended warranty, this is the type of insurance coverage most people opt for. Don’t forget that with this type of plan, you will also have to factor in the cost of a deductible when repairing or replacing your device. The cost of the deductible for most cell phone insurance plans is between $100-$300 depending on your plan.
Cell phone insurance may be unnecessary for some people, and mandatory for others. You should also factor in whether or not you can fit purchasing cell phone insurance into your overall budget. Do you have an expensive monthly cell phone bill to begin with? Are you living paycheck to paycheck? Are you even able to afford cell phone insurance?
Renters Insurance For Your Cell Phone
If you are considering going without cell phone insurance, your renters insurance policy will also cover to replace a stolen cell phone, a fact which many people do not consider. This coverage does not apply if your cell phone is simply lost, however. If you don’t have the extra funds to pay for monthly insurance on a cell phone, but want slightly more protection than what is offered on an extended warranty, it may be a relief to know you have some coverage for your cell phone under your renters insurance (depending on your situation).
If you have further questions on how your cell phone is covered under your already purchased renters insurance policy, feel free to call us anytime! We are here 7 days a week. Just call (800)892-4308 or click to get covered - whether you need renters insurance quotes online or coverage anywhere else!
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