Everyone Has a Smartphone…Should Everyone Have Smartphone Insurance?

We all know the feeling: standing in a cell phone store with a silver-tongued salesperson wondering if we really do need an insurance plan for our devices. A wave of uncertainty washes over us as we envision drowned phones, lost purses, cracked screens, and other disasters. Maybe we should pay the extra $7-$15 a month for safety…

The real answer is that it all depends.

Here are some factors to consider, so you can answer that salesperson with confidence.

Are you ready and able to pay the full cost to replace a top-of-the-line device?

If you lose or damage a phone without insurance, most likely you’ll be obliged to replace it at full cost. The price-point for a device purchased as part of a contract-renewal is much lower than the full cost. Where you paid $150 for a phone under contract, you might pay around $650 for the same device at full-price, and if you happen to have a Samsung Galaxy X9+ or an iPhone X, you might be asked for as much or more than $1000 out-of-pocket.

If you can handle the payment, though, don’t bother with insurance. The cost of the plane and the deductible for repair/replacement can be as much as $400, depending on the service needed, so you aren’t saving much in the long run.

The best insurance is called a cell-phone case.

Sure, a case can’t save you from everything (theft or loss, for instance), but a good one like an Otterbox can protect from almost any kind of damage. Even a cheap plastic case can be enough to soften the blow when your phone inevitably slips out of your hand without warning.

Are you okay with a refurbished replacement?

Imagine you use a top-of-the-line device and accidentally crack the screen. You’re signed up for Asurion insurance through your Verizon plan, so you contact them to ask for a covered screen repair. There’s no one in your area who can provide that service, so instead they offer to replace your phone for the cost of the screen damage deductible (~$20-$50). The deal sounds great, but when the replacement device arrives it’s a lower-end refurbished model because Asurion has limited stock of refurbished devices to send to customers. If you’re okay with such accidental downgrades, insurance can be a great choice for you. If you really need the best quality in your devices for business or personal reasons, though, insurance may not be reliable enough.

Some renter/homeowner insurance policies cover cellphone replacement.

It’s worth checking to see if your insurance already covers cellphone replacement for loss/theft/damage. Most likely it won’t cover minor accidents, but a combination of a good case and a robust renter/homeowner insurance can provide excellent protection for your device.

And of course, another form of insurance that we highly recommend is making friends with your friendly, local computer and phone repair technicians. Here at ComputerCare we are always happy to chat with you about damage to your devices to see if it’s something we can fix for a reasonable fee, rather than forcing you to pay your deductible for insurance-covered repair or replacement. Contact us today if you have questions about repairing a device.