Five Reasons You Need Cell Phone Insurance

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Here is no doubt that cell phones have become an integral part of most people’s daily lives. The phones in use today do far more than just place and receive calls. Many of them are small hand-held computers that contain important contact information. It’s included for friends and family as well as fun games, reading material, and financial tools. Cell phones are used to post and read comments on social networking sites. As well as keep track of business email from anywhere. For the first time, smartphone sales have actually outpaced computer sales. FiveĀ  Reasons You Need Cell Phone Insurance.

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The idea of a lost or damaged cell phone would strike fear into the heart of even the most casual phone-toting teenager. Since these devices are so important to daily life. It seems like a simple fact that they should be covered by cell phone insurance. Unfortunately, the insurance offered by most cell phone carriers may not be worth the trouble.

1. Cell Phone Protection Makes Sense

Cell phones are expensive gadgets that contain priceless information. They are also small, fragile devices that are carried everywhere from the dinner table to the bathroom to crowded sports stadiums. Some people even keep their phones under their pillows so they can listen to music as they go to sleep at night.

All of this constant use in various locations can lead to unexpected damage. It is so easy to drop a cell phone into the sink while you are washing your hands. The phone can slip off the desk and crash to the floor at any given moment. It would make sense to purchase some sort of insurance so that you could repair or replace your phone if it were ever damaged.

2. Provider Insurance Rates Not Too Expensive

The good news is that most cell phone providers offer insurance for as little as $5 per month. Compared to the cost of a brand new phone, that seems like an absolute steal. You probably wouldn’t even notice the difference on your cell phone bill, especially if you have unlimited talk and data plans that allow you to keep your bill at a steady level all of the time. The question is, what do you get for your $5 a month?

3. Coverage is an Important Factor

Unfortunately, you don’t really get all that much. Most cell phone insurance plans do not allow you to replace a broken phone with a brand new one. You’ll have to settle for a refurbished phone that may not even be the same model as the phone you were using before. Your replacement options are really left up to the cell phone carrier. If you want to get a new phone or insist on a specific model, you may end up paying an extra upgrade fee regardless of your insurance.

4. Dealing with the Deductible

Cell phone companies will also expect you to pay a deductible before the insurance kicks in when you need a replacement phone. You could pay anywhere from $50 to $150 for your replacement phone, even if it is not the exact phone you wanted in the first place. $150 is not much compared to the $400 you could pay for a top end device, but it is still quite a lot to spend out of pocket. Especially if you have been faithfully paying for your insurance coverage for a few years.

5. Alternatives to Insurance

Instead of buying a cell phone insurance plan, you may be better off creating a savings account to cover any cell phone emergencies that may arise. If you put $5 or $10 a month into savings, you will still be contributing toward a replacement plan for your cell phone. The nice thing is that you will be able to choose how you want to spend that money when it is time to replace your old phone. Your savings account won’t have any stipulations or added fees to get in your way when all you really want is a cell phone that works.

Xwzch is a blogger, freelance writer on everything about money matters. She is passionate to write about saving and managing money. Travel enthusiast and animal lover.

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