Smartphone Insurance: Is It Worth the Cost?

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Just last week, Verizon added a new feature to their phone insurance plan. It’s a ‘same day repair’ in many cities option for customers who crack or break their screen. Verizon’s plan is $11 a month or more, depending on extras translating into $132 a year before benefits. Plus there is a deductible of $7 for a cracked screen phone repair. An even higher $149 on top of the insurance is required to replace a lost phone or serious phone damage.
Similar phone competitors offer phone protection plans with monthly rates still requiring deductibles for cracked screens, lost phones, and damaged phones. AT&T charges $8 a month to users, plus screen repairs are $89, and lost or severely damaged phones cost an additional $225. That’s going to cost AT&T users $185 to $314 to fix a phone under an insurance plan, and nearly $100 paid out whether the service was used or not.
Consumer advocates say this is why the majority of cell phone owners don’t need Verizon and the other carrier’s protection plans, because the costs are high and the benefits customers receive are low. In fact, quality issues, loopholes, red tape, mail in rebates, and deductibles are all part of the reduction in benefits consumers have to deal with when trying to use the mobile insurance plan they have paid so much to have already.
According to surveys released by Consumer Reports, it is rare for smartphone owners to lose their phones or even damage them. Consumer Reports has published that only 1 out of 5 smartphone survey respondents have had to replace a stolen, broken, or lost phone.
You will not only save money when you skip on the phone insurance, but you won’t be blindsided by ‘we don’t cover that’ if something does happen. Or even worse, “That will be an additional cost of $225 for your deductible to replace this phone.” I mean, what about the hundred plus already spent on insurance? Some people are even compensated with a refurbished model for their replacement phone after paying instead of a new phone.
So, go ahead and pass up the insurance form your mobile phone provider. In the unlikely event you actually crack your screen or damage your phone, the cost for smartphone cell repair is more affordable than you think, sometimes cheaper than a deductible! When it comes to issues or problems with your smartphone, a certified smartphone repair professional is the way to go.

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