Do you or someone you know use a cell phone? With billions of cell phones in use across the world everyday, the answer is likely a resounding yes. In fact, finding a household without at least one cell phone would prove to be challenging in today’s society. Cell phones are an integral part of our lives, with many people using their mobile device for more than just checking in with friends. In the past few years, cell phones have evolved from a convenient way to keep in touch into electronic devices with computer like capabilities. Many of the popular cell phones in use today cost hundreds of dollars. As such, is cell phone insurance still optional or is it something we should all have?
Without putting much thought into the matter, you might assume that paying for cell phone insurance is a no-brainer. Who wants to pay hundreds of dollars for a new cell phone only to be out that money if the phone is lost or damaged? The issue with cell phone insurance is not whether or not you need coverage and protection for your phone, but rather how much protection is offered. Of the protection that is available through insurance, is that coverage worth the cost of insurance premiums?
Let’s consider a few basic facts to find out if cell phone insurance is the best move to cover the cost of a lost or damaged phone.
Many cell phone providers offer insurance for around $5 per month. This fee is pretty affordable for most users. Paying for cell phone insurance from your provider is easy and convenient.
At first glance $5 per month appears to be a fair amount to pay to ensure your phone is insured, but what exactly does this insurance cover? This is where a large number of cell phones users quickly learn that cell phone insurance may not provide that much coverage.
For example, your cell phone insurance may or may not replace your phone with the exact model that was lost or damaged. It is not uncommon to receive a refurbished or used phone in place of the original device. In addition, the replacement might not even be the same type of phone that you paid insurance to cover. There are plenty of exclusions, loopholes and special requirements which have to be met in order for a person to actually benefit from cell phone insurance.
In addition to not always having coverage or having your phone replaced with a “comparable” device, you can’t forget the deductible. That is right, you have to pay from $50 to $150 out of pocket before your insurance kicks in.
Cell phone users should carefully weigh the pros and cons of cell phone insurance before agreeing to a policy. A few bucks a month will likely not break the budget for most users, however that money might be better invested in an individual savings account set aside for cell phone emergencies. At the end of the day, it is a personal decision which should be based on your own financial needs and determined by the actual coverage provided by your carrier or third party insurer.