Do i need a cell phone insurance ?
These days it is next to impossible to see people without using their phone even while on the road. With the new technology and innovation of mobile phones, smart phones have become ubiquitous. As the technology and features are advancing so is their price tag. A hug amount of money is paid to the phone carrier. For example, a iPhone or an Android smart phone will cost you only $200 but you will have to pay $600 for it if you commit to a 2 year contract with the carrier.lose it or break it.
Unfortunately, after paying the heavy price for your phone, anything can happen to your phone during the contract period. You could lose it somewhere or drop it accidentally and when something like this happens, you will be looking for a new phone which will cost you a hundreds of dollars more. One can just imagine the cost of replacement when you lose or break your phone.
So, the obvious answer is o sgn up for a cell phone insurance when you buy a new phone. If you pay approximately $7 per month you get a phone replacement in case it is lost or broken. It does sound good, but no, it could not be the right thing for you.
Why you should no to cell phone insurance?
If you do simple math then you will understand that if you pay $7 per month as insurance it adds up very quickly and you will end up paying $168 for a service that you may never use.
You might say that is ok as you might accidently drop or lose your phone and you can take the insurance advantage to get a brand new handset. However, it does not work out that simple. When your phone is replaced, an amount ranging from $50- $200 will be deducted and sometimes there is no guarantee that you will get a new phone in return. You might not get the same phone or even a unused mobile phone.
So, what is the point of paying 2 years insurance that amounts to $168 plus the amount of $100 or so deducted all for the device that you might not be good as the first one. However some people think it is a good deal for them as they will be paying only $268 instead of the $600 and will save $332. However, there are many better and economical options to consider.
Insurance Alternatives
Instead of paying $84 per year, a regular insurance agency can offer cell phone insurance at cost that is half of what you pay. Just call an agent and ask for personal articles policy for your mobile phone.
One advantage with this method is you do not have to pay a deductible amount. When you claim for the insurance you will easily get a check for buying a replacement for your lost phone. You can choose the model you like or else get the same model back. You cannot get these advantages with your phone insurance.
Before you get an insurance from a regular insurance agency ask the agent before in hand if there will be a deductible, what type losses will be covered, if your phone is broken will it be replaced, how your phone will be replaced, will you get a check for the amount you paid or any less?
Do not Insure your Phone
Even though a personal articles policy might be tempting, it is still a waste of money if you are careful with your devices generally. Most of the people take good care of their thing especially smart phones that come with a heavy price tag. If still your phone meet with an accident then consider the following options.
Buy a used phone
Instead of wasting hard earned money on buying a new phone, go for a second hand phone. Some people use a phone for just a few months and when a new model releases in the market then buy it and do not use their old one. These kind of phones generally go for sale on e-bay or other sites like these. You can buy them for a discounted amount. You can get great deals on cell phone on sites like Craiglist, Swappa etc.
Save the Monthly Insurance cost
Another alternative is you can save up the money that you intend to pay for phone insurance. When your phone is broken or damaged use the fund to buy a new one. Though you cannot entirely cover the replacement expenses, you can keep the amount in case you make through the contract period with a perfectly working phone in your hand.
To conclude, cell phone insurance might be a waste for you, if you are so confident that something might happen to it, then get it insured at your regular insurance agency.
