Do I Need Insurance for My Smartphone?

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With prices of smartphones increasing by the day, more and more people are considering investing in mobile phone insurance to protect their device and to guarantee that they will get a replacement should something happen to their phone. The smartphones on the top end of the market, such as the latest iPhone model, can cost well over 1,000 these days, more than many people spend on high tech items such as TVs and laptops. Since they are so easy to break, especially as we take them everywhere, it is no wonder that people look for ways to insure them. But is insurance worth it?

The pros of smartphone insurance

With retail prices soaring, a smartphone has become not just an essential purchase but an investment in itself. Spending so much money on a device that is essentially so delicate is risky, and without insurance, if something happens to your phone you could end up facing a huge bill to fix it or, worse, have to buy a new one altogether. Investing in insurance gives you some security and peace of mind, knowing that you can make a claim should something happen and that you are almost surely protected and won’t lose out on more money.

There are insurance plans that cover loss, theft, damage, accidents and malfunction, those these are more expensive. Then there are plans at a budget price, such as the SquareTrade plan that only cover damage, malfunction or accidents, but claim that 90% of the mobile insurance claims are related to these three things, and that by investing in traditional insurance you are basically wasting money. (Source – iPad Wisdom). The great thing about plans such as SquareTrade is that not only to you save money on your plan, they are also incredibly flexible, and you can transfer your existing plan to another phone should you upgrade on buy a new model.

The cons of smartphone insurance

Smartphone insurance is essentially another expense, and unless your phone is worth a lot of money, it may not seem worth the extra investment. Many people prefer to self-insure themselves when it comes to smartphones, that is, instead of paying an insurance company incase something goes wrong, put money to one side for potential repairs or replacements should they be necessary further down the line.

One of the biggest cons of smartphone insurance is that in many cases, the reason why your phone is damaged or has been stolen are not covered and they simply will not do anything, meaning not only are you paying for the insurance plan, but you will also have to fork out for the repairs or replacement, too. A loose loose situation. For example, most plans do not provide cover for water damage or thefts while unattended, and they may have special conditions, for example a very small period in which you have to report your phone stolen (often 24 hours) to qualify for cover. (Money Advice Service)


Whether insurance is worth it really depends on you and the value of your smartphone. If you are prone to accidents or if your smartphone has been stolen or broken before, and you have an expensive, high end model, it may be worth making that extra investment, but always read the small print and make note of the exceptions and rules of the contract, as many companies are sneaky when it comes to replacing or paying repair bills and may try and get out of it. If your phone is not mega expensive and you are a responsible person who takes good care of their belongings, you may be better off saving the money and covering any potential repair bills yourself. Another good idea is to invest in high quality screen protection and a sturdy case to avoid smashing the glass, and installing an app to track down the phone in cases of thefts. These apps are available for Android and iPhones, too, and cost next to nothing.
(KnowYourMobile) (Make Tech Easier)