Finance Lifestyle

Is it really worth insuring your mobile phone?

These days, you will hardly find someone leaving their homes without playing a quick round of Angry Birds or checking their mails or looking up for reviews about the new restaurants. Thanks to the technological advancements since the last 5 years, that smartphone usage has gained huge momentum. However, apart from their impressive functions, smartphones also come with a pretty expensive price tag. Fortunately, most of these costs are all consumed by the carrier company. That $200 Android smartphone or iPhone which you recently bought would cost you nearly $600 if you bought it without committing to any contract of 2 years. But something which you don’t take into account is that there are lots of things that can happen to your phone within that contract period.

pickpocket at shoppingcenter editorial use only
pickpocket at shoppingcenter editorial use only

Your phone might slip off your hand and fall on the pavement, it might fall into the toilet or you may even accidentally leave it behind somewhere. Replacing or repairing your phone can cost you hundreds of dollars and hence arises the need of getting your phone insured. Although most carriers offer phone insurance policies but the question is whether or not it is worthy seeking this coverage.

Getting mobile phone coverage – Why shouldn’t you opt for it?

Anyone who is okay with basic mathematics should note that paying $7 per month to your insurance company usually adds up pretty fast. Over the entire course of your contract, you would have to pay $168 for some service which you never ever used. Many feel that its fine or they would rather accidentally lose their phone so that they can get monetary benefits from the insurance company and use the proceeds to buy a new phone. But you should reconsider your thoughts before deciding. Whenever you replace your phone, you have to pay the insurance deductible which might range from $50 to $200 and there’s no guarantee that you would get a new phone in lieu of that.

So, in such cases, what are you doing? You’re just paying for 2 years of insurance and also the deductible, everything for just a device which might be not as good as the phone with which you had started off. Now, there are some people who might consider this as a great deal and some others may not. However, there are indeed some better alternatives that you may take into account.

Get your personal articles insured

Most smartphone users forget that they can even get their phones insured somewhere else. Instead of having to pay $84 in a year, if you seek help of an insurance agency, you might have to pay a much lower price. You can just call an insurance agent and ask him what it takes to get a personal articles insurance policy. Here, you won’t have to pay any deductible amount.

Therefore, if you are a smartphone user, be very careful while making the decision of whether or not you would require a phone insurance policy. Consider the points mentioned above.

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