We get insurance for our homes, cars, health and more. But what about for our smartphones? Is phone insurance worth it?
That’s the question we look at below.
What Would We Do Without Our Phones?
These days, it’s very difficult to live without a smartphone, or even a regular phone. Telecommunications, texts, calls, emails, are basically the way of life now. Think about it, when was the last time you left your house without a phone?
No matter what your opinion is about the usage of smartphones, there’s no denying the fact that it is a necessity. This is why phone insurance policies exist. The question is, is it worth it?
What Does Phone Insurance Cost?
Phone insurance can cost as little as $7 a month. The costs vary depending on the type of phone you have, and your carrier. With phone insurance, your phone will be replaced if anything happens to it.
What Does Phone Insurance Cover
So, $7 a month may sound really cheap, especially if your phone means a lot to you. However, if you do the math, that $7/month you pay for phone insurance can add up very quickly. By the time you’re done with your phone insurance contract, you have probably spent hundreds of dollars for a service that you may never even use.
Watch Out for Loopholes
Even the phone replacement guarantee has some loopholes in it too. Why? Because when you lose your phone, and use phone insurance to replace it, you are still required to pay a deductible.
The price of the deductible can cost you an additional $50 and $200. Not to mention that even with phone insurance, you are not guaranteed to get a newer or better phone.
Is Phone Insurance Worth It?
With that said, you have to think about it. Is phone insurance really worth it? Our opinion? Not really.
So, what can you do instead? Well, there are a number of cost-cutting and more practical alternatives to phone insurance. Here are a few of them:
Pay Yourself Instead
Instead of shelling out $7 a month on phone insurance, why not put that money (or maybe even more) into your savings? This will help create a small savings for you in case you do need to replace your phone.
Of course, the money you save may or may not be enough to cover the entire expense of a new phone. However, you will still have enough money that you can use.
Try a Personal Articles Insurance Policy
If you already have any type of insurance policy, you may also ask your insurance provider if they can add a Personal Articles insurance policy to your plan. Most of the time, they will give you a nice discount that will only cost you half of what you pay for a phone insurance policy.
A personal articles insurance also means that you don’t have to pay for a deductible. And the best part is, you will receive a check after you file a claim. You can use that check to purchase a replacement.
But just like with any other insurance policy, you need to make sure you understand how it works before you agree.
Don’t Get a Phone Insurance Policy
Of course, this would be an alternative. Typically, a smartphone’s lifespan is anywhere between 2-3 years. And if your phone lasts for longer than that, you will probably end up buying a new phone as a replacement anyway.
