The truth about cell phone insurance
We often get questions from our customers about cell phone insurance offered by their cell phone carrier. Many people assume that by signing up for an insurance plan for between $7 – $11 a month, their damaged cell phone will be replaced with a new device free of charge. Sadly, this is often not the case…
Most insurance plans offer by the major cell phone carriers have high deductibles for smartphones such as the Galaxy S3, Galaxy Note and iPhone’s. These deductibles can be as high as $200 ($150 on average). Assuming you have insurance, and break your phone once during your two year contract, you are actually paying between $293 and $464 for your insurance replacement. While this is still often less then the cost of buying a new smartphone without an upgrade, it is much more expensive then most cell phone repairs.
FInally, most insurance replacement phones are not new phones, but 3rd party refurbished phones. Many insurance replacement phones we have worked on have had missing screws, super glued screen, and other oddities. I am sure this is not the case with all insurance replacements, this has just been our shops experience.
So next time your offered cell phone insurance, consider a less expensive plan that just covers loss and theft and keep our number handy just in-case you drop, run over, step on or otherwise damage your phone. Most minor repairs are just $50 and screen replacements start at just $99!