Smartphone insurance plans can be purchased on a month-to-month basis, in addition to being available via contract for a preset length of time. Is month-to-month phone insurance worth it? We are here to help you decide.
KEY TAKEAWAYS:
- Monthly smartphone insurance plans allow consumers to cancel at any time without accruing a fee.
- Smartphone insurance tends to cover accidental damage, theft, and loss, which warranties do not cover.
- Phone insurance plans typically cost 5 to 10 dollars per month, but deductibles can be as high as 200 dollars per year.
Should You Buy Month-to-month Phone Insurance?
There are some key advantages and disadvantages to opting for month-to-month phone insurance over a yearly contract. And as for new Galaxy owners, Samsung’s insurance offering works great for customers.
What is Cell Phone Insurance?
Smartphone insurance is an option provided via wireless carriers and aftermarket companies, such as SquareTrade and Akko. These insurance plans typically cover a number of things that warranties do not, including loss, theft, and accidental damage. In the case of damage, you may also want to consider whether to replace or repair your smartphone.
Is Month-to-month Phone Insurance Worth It?
We assembled some of the advantages of month-to-month smartphone insurance and some of the disadvantages so you can come to an informed decision when it comes to protecting your expensive new cellular phone.
Insider Tip
Costs vary from company to company, but they average out to around five to ten dollars per month.
Pros of Month-to-month Phone Insurance
Here are some of the advantages of choosing a monthly phone insurance plan.
Low Monthly Cost
Generally, month-to-month phone insurance plans are not terribly expensive. Costs vary from company to company, but they average out to around five to ten dollars per month. This is not an exorbitant price, though it can add up as the phone advances in age. If a plan costs ten dollars per month, that adds up to 120 dollars per year.
Coverage Inclusions
As previously stated, smartphone insurance will offer coverage in a number of instances when a standard or an extended warranty will not. Insurance plans typically cover accidental damage, water damage, theft, and loss. Warranties generally only offer coverage for transit damage upon the initial purchase, faulty parts, and manufacturer error.
No Cancellation Fees
If you are going with a month-to-month insurance plan, that means you have not signed a contract for an entire year of service. In other words, these plans generally allow consumers to cancel whenever they want without any additional fees or penalties.
Insider Tip
Insurance plans typically cover accidental damage, water damage, theft, and loss.
Cons of Month-to-month Phone Insurance
There are some disadvantages to going with a month-to-month phone insurance plan or purchasing smartphone insurance in the first place.
High Deductibles
Though the monthly cost of the plan maxes out at around ten dollars a month, the deductible is a hidden cost to consider. Insurance deductibles can be as much as 200 dollars per year, meaning you will have to pay 200 dollars out of pocket before any insurance claim reimbursement will kick in.
Claim Limitations
Smartphone insurance providers tend to set a hard limit on the number of claims you can file per year. This limit is typically two claims per year, but it can be just one claim per year. Be sure to read all of the documentation that accompanies your insurance plan.
F.A.Q.S
What is cell phone insurance?
Smartphone insurance is a service that you pay into in the event of an issue arising with your phone. When your phone becomes lost or damaged, you can file a claim for reimbursement.
Is cell phone insurance only available through my carrier?
No. There are many afterward and third-party companies that offer phone insurance, including Akka, SquareTrade, and Geek Squad.
What are my options if a leased phone is damaged?
If a phone you are leasing becomes damaged before you return it, you may have to bring it to be repaired and pay for these repairs yourself.
STAT: 90 percent of millennials take their smartphones into the bathroom with them. (source)
REFERENCES:
Warning
Warranties generally only offer coverage for transit damage upon the initial purchase, faulty parts, and manufacturer error.
