Until recently, cell phones were used to send short messages and make calls. Our phones are used to store our contact information, manage our connected devices, watch videos, check email, and keep us updated on social media. Phones are so integral to our lives, many people now sleep with them.
If your phone is stolen, lost, or damaged, it can cause panic in the most unflappable. Experts agree that cell phone insurance is worth looking into.
Consider this for those still unsure about cell phone insurance:
1. Even though insurance costs more than monthly premiums and deductibles can still save you money. The average price of a new smartphone retails at $590. This is even more for an iPhone 7 basic model ($649). Over 70% of phone claims are filed within one year. Phone insurance customers who file a claim by month 12 for an iPhone 7 may save $318-$342 on a replacement device after paying premiums and deductibles.
2. Most after-market “protection plans”Extended warranty plans only cover accidental damage or malfunctions. Only cell phone insurance and warranty packages — which are available through most wireless carriers — cover loss, theft, and damage. According to Asurion, the country’s most trusted mobile insurance provider, this is crucial because nearly four percent of all phone claims in 2013 were due to theft or loss.
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4. The full cost of a phone is now paid upfront or monthly in installments by the customer. The remaining installments are still due for those who suffer a loss, theft, or damage after they have paid the monthly installments. You could also be responsible for the remainder installments as well as the payment for the new phone if you don’t have insurance. A 128GB iPhone 7 Plus could leave a customer with a debt of nearly $700 after 6 months. This is despite trying to buy a new phone.
5. Most carriers offer replacement devices the next day for customers who can’t imagine life without their cell phone. The major wireless carriers provide a 1-year warranty that covers any issues with the device.
