Is cell phone insurance worth it?

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is cell phone insurance worth it

Most people are on their cell phones on an everyday basis. In fact, 85% of people own an expensive smartphone. As such, thinking about not having your phone might stress you out. 

You may even feel lost without your cell phone. But what happens if it breaks, goes missing, or gets stolen? Is cell phone insurance worth it? Do most people get their money’s worth? We’ll answer these questions and more down below. 

What does cell phone insurance cover?

No two cell phone insurance plans are the same. So, make sure you read the fine print closely before selecting a plan. In most cases, smartphone insurance covers electrical and mechanical failures. But other coverage plans might include theft, loss, or damage as well. 

Additionally, not all insurance plans cover liquid damage, but some do. Be sure to read the fine print and pick the right plan from there. 

What does accidental damage from handling mean?

Accidental damage from handling (ADH) happens when drops and spills affect devices. Thankfully, you can pay for coverage that will cover these issues. 

Depending on the insurer, there are often some exceptions to ADH coverage:

  • Coverage doesn’t apply to the first 60 days.
    • This often means there is something wrong with the cell phone from the start, and you should just return it to the store.
  • ADH doesn’t cover parts that the consumer can replace, including headphones.
  • ADH coverage does not cover software issues.
  • It does not cover lost or stolen phones either. 
  • You can avoid insurance by using something meant for personal use professionally. 

6 things you should know about cell phone insurance

Are you about to hit confirm on your cell phone insurance order? There are a few things you should know before you do so! 

1. Possibly pay a high deductible

Just because you have insurance doesn’t mean repairs will be free. You’ll have to pay deductibles for repairs, and the deductible cost can be high in some instances. Instead of spending hundreds of dollars paying a deductible, make sure the cost of mobile phone insurance is worth it. 

2. You don’t have to buy insurance from your carrier

While your carrier may offer insurance, many other forms of insurance are available, like AppleCare for iPhones. However, many different independent cell phone insurance companies, like Squaretrade, will ensure your device for a lower cost. 

3. Only file a certain number of claims

Did you know that you only have access to two repairs with AppleCare? As we keep emphasizing, all cell phone insurance is different. So, make sure you know how many claims you can use with your mobile phone insurance provider. Most insurance plans only allow you to file a certain amount of claims per year. After that, you’ll have to pay the full price to fix your phone. 

4. Some insurance does not cover loss or theft

Some cell phone insurance doesn’t cover loss or theft. However, many wireless carriers usually cover a stolen or lost phone, but some major insurance providers do not, including Samsung and Apple. Samsung doesn’t cover loss or theft. AppleCare gives you the option to pay extra for a lost or stolen phone, but the base plan does not cover loss or theft. 

5. Do your homework on tiered options

Many insurance plans are offered as tiers. Make sure you know what you are getting with each tier. Some tiers may guarantee replacement, while others only guarantee repairs. You may want different things that your cell phone insurance does not offer. As such, tiers can give you options so that you’re not paying for something you don’t need. Just read the fine print carefully. That way, you can make sure you get the right tier of mobile insurance for your needs. 

6. Weigh the cost of a new phone

Have you used phone insurance in the past? What is the cost of a new phone? Will you pay monthly cell phone insurance? You may consider foregoing smartphone insurance altogether if it makes more sense to replace your cell phone if and when accidents occur. 

Do I need cell phone insurance

Would replacing your cell phone right now financially ruin you? Smartphones can cost over $1,000 in today’s world. Is that an amount you can afford to pay if you had to pay it? If so, you might not need insurance. 

At the end of the day, it’s up to you to decide if you need cell phone insurance. Consider it if you are accident-prone and if it’s likely that you will damage your phone. You may not even utilize your phone insurance if you use older models or rarely file claims, so ditching the insurance might save you money. It all comes down to what works for you. 

Make sure cell phone insurance is worth it for your finances

When it comes to cell phone insurance, you have to consider your finances, your lifestyle, and your tech preferences. You wouldn’t want one careless drop of your cell phone to cause your bank balance to drop into the negatives. So, if that is a valid concern for you, then cell phone insurance may be right for you.


How long should you keep insurance on your cell phone?

For the length of time that makes financial sense. After two years you may qualify for a new phone, and then you shouldn’t keep paying for insurance on an old phone.

Does cell phone insurance cover cracked screens?

Not all cell phone insurance covers cracked screens. Be sure to read the fine print on your mobile phone insurance.

Can I cancel phone insurance after a claim?

Most phone insurance providers allow you to cancel your insurance at any time. Just submit your request through their website.

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