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Is it wise to get insurance on your cell phone?

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  • User profile image
    RodAtWork

    I got my first smartphone yesterday (an HTC Trophy).  I had to go to the vendor to have them help me get it set up (long story, for another time), and they asked me if I wanted to get insurance on my phone.  I've never purchased insurance for any phone I've owned in the past, which is probably something like 5 phones, but now I'm wondering if I should.  I've never lost a phone, never had a phone stolen, never misplaced a phone, never broke a phone.  And with my salary shrinking rather than growing, making a financial decision like this is important (it's costing me enough as it is to get the data plans necessary for these smartphones!)  So, is it wise to get insurance on one's phone?  Or is this something that can be covered on one's home insurance?  Are they're alternatives for covering the cost of a lost/stolen/broken smartphone, other than paying my carrier?

  • User profile image
    cbae

    If it's something a retailer wants to push on you, it's probably not something you want. This kind of insurance fits well in this list of "products" that you never want to pay for:

    • car rental damage waiver insurance
    • electronics extended warranty
    • payment protection insurance
    • private mortgage insurance (this one is forced on you by the lender, but you still want to avoid it, if you can)
    • insurance for babies (babies have no income to protect, unless the baby is heir presumptive to a monarchy)
  • User profile image
    ScanIAm

    I normally skip insurance on electronics, but then most electronics are stationary and locked up.  We carry around our phones all day, so there is more likelyhood of loss, theft, and damage.

    What you could do is pay the insurance for a while and once the phone loses enough value that the insurance is a waste, get it removed from your plan.  Just make sure that removing the insurance doesn't restart your contract. 

     

  • User profile image
    ScanIAm

    , cbae wrote

    • insurance for babies (babies have no income to protect, unless the baby is heir presumptive to a monarchy)

    If my baby is lost or stolen, do they send me a newer model?

  • User profile image
    SheldonS

    We had insurance on our daughter's phone.  When it broke after being dropped we discovered that the insurance we had been paying on all this time was useless.  It did not change a thing.  I will never get that kind of insurance again.

    I guess it is only good if the phone gets water damaged, I don't know.

  • User profile image
    cbae

    , ScanIAm wrote

    *snip*

    If my baby is lost or stolen, do they send me a newer model?

    I'm sure the insurance company would be willing to sell you a rider for such coverage.

  • User profile image
    spivonious

    Make sure it covers damage from dropping the phone and get it. These things keep getting more and more fragile.

  • User profile image
    Ray7

    @RodAtWork: Check your home insurance. It may already be covered, or you can get it covered by just a small increase in the premium (which will be an order of magnitude less than whatever the phone shop is trying to sell you)

  • User profile image
    RodAtWork

    Thank you very much for this great feedback!

  • User profile image
    wkempf

    Also, even if you opt for insurance, don't go through the vendor. They overcharge, and often don't cover you any way. There's third party insurers, like Square Trade, that are reputable and usually cheaper.

  • User profile image
    Ian2

    I have had quite a bag of smart phones but prefer to 'insure myself' which is short for taking the risk that nothing willl happen. 

    The question you should ask yourself is 'am I happy to replace this phone myself (or live without it) if I lose/break it? 

  • User profile image
    magicalclick

    Not for me. If it breaks, it is crappy anyway. If it breaks because of me, it is me intentionally doing it sub-conciensely anyway, meaning time to get a new phone.

    I haven't experience either cases on all my cell phones. Hopefully my cellphone continues to work until I respectifully retire it.

    Typically my phone and my PC and my Laptop, money is not important. The data are much more important. My phone is already synced with cloud, so that's fine. I do some data backups on my PCs, which is not too horrible.

     

    Leaving WM on 5/2018 if no apps, no dedicated billboards where I drive, no Store name.
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