Should You Buy Cell Phone Insurance?

Do you really need to buy cell phone insurance? This is a question you are sure to wrestle with when purchasing a new phone. There are both pros and cons of buying this type of insurance. Before you decide for or against it, you should weigh your options. Some consumers find that buying cell phone insurance is a great idea, while others see this as a waste of money.

Benefits of Cell Phone Insurance

One of the main reasons why cell phone insurance has become so popular is that it can be had for a very low cost. In most cases, you should be able to purchase coverage for as little as $5 per month. To make things even easier, the premium can be added to your cell phone bill so you do not have to deal with any additional expenses throughout the month.

The benefit of buying cell phone insurance is that you will be able to get a replacement phone, regardless of whether or not it is under warranty. This takes all of the guess work out of what will happen should your phone break or be stolen before you are ready to buy a new one. For many consumers, the peace of mind that goes along with buying cell phone insurance is enough to push them in this direction.

Drawbacks of Cell Phone Insurance

A potential issue with cell phone insurance is that you may have to jump through hoops before you claim is honored. For example, if your phone is stolen you will probably have to file a police report with your insurance company before the claim is accepted. This can be a major hassle, and one that many consumers do not want to deal with. Instead, they would rather pay for a new cell phone and avoid the trouble.

The costs add up over time. In addition to the $5 that you will be paying for cell phone insurance coverage, you will also have a deductible of somewhere in the $50 to $100 range. When you add up these expenses, it is easy to see that you are approaching the cost of a new phone. Consider this fact because the cost of the insurance could add up to an entirely new phone.

If you want insurance, it would be in your best interest to buy the policy along with your cell phone. Typically, you only have 30 days to purchase coverage for a new phone. Those who are not ready to make a quick decision find that the time limit has expired. As a consumer you have to weigh the pros and cons, and then decide for yourself whether this type of insurance will benefit you.

blog comments powered by Disqus