Today, the use of smartphones has become ubiquitous, thanks to the many innovative technological developments in mobile phones. It is almost unthinkable to leave home without the mobile that is used a lot to check email, search for restaurant reviews or play a quick game on the device.
However, the price of a smartphone is quite higher due to the presence of an impressive range of functionalities. The unfortunate thing that happens is you lose your phone. It could slip out of your hand and fall to the floor, fall into the toilet, or mistakenly get left behind somewhere, never to be found again. Typically, you’re looking to buy another phone for yourself, and that could cost you a few hundred dollars.
A common alternative to the high cost of getting a replacement is to sign up for cell phone insurance when you buy your new phone. As required by your carrier, you pay about $7 a month and get your phone replaced, should you ever lose it.
Why it is not worth buying cell phone insurance
Anyone can see that the $7 per month paid for insurance quickly adds up to an amount of $168 over the course of your contract that you may never use. However, when you replace your phone, you also have to pay a deductible that could be anywhere from $50 to $200, and even then there’s no guarantee you’ll get a newer phone as a replacement. So you paid two years of insurance and your deductible for a device that might not be of similar quality to the one you had when you first bought it. However, there are a number of better, cheaper alternatives for you to consider.
Cell Phone Insurance Alternatives
Buy a personal articles insurance policy
You can get your phone insured from some other insurance agency that can offer a price that is less than half the amount to cover your phone. You simply need to get a “personal items policy” on your phone.
Another benefit you get is that you don’t have to pay a deductible. Once a claim is made, you will receive a check to use toward the purchase of a replacement phone. You also have the opportunity to select which phone to buy as a replacement for your old phone. However, you should understand how the policy works before you sign the agreement.
Do not secure your phone at all
Buy a used phone: You can get a new and scratch-free phone from the different sites that sell used mobile phones.
Pay the monthly insurance cost yourself
You can create a small cushion in case you need a replacement by paying a monthly insurance cost yourself (ie an emergency fund).
