If you’ve just signed up for a new cell phone deal or upgraded your phone, it’s likely someone has trying to sell you cell phone insurance. But do you need it? This page covers the basics to make an informed choice about which mobile insurance is best for you. Here’s how to make the right decision.
You should consider mobile phone insurance if:
- You have a history of lost, stolen or broken phones.
- You have an expensive smartphone, and you have a long-term contract.
- You can’t afford to replace your phone, and you won’t want to upgrade to a cheaper model.
- You rely on your cell phone and will require immediate replacement if lost, stolen, or damaged (keep in mind that you will need to choose a policy that offers quick replacement service – not everyone does this).
What does your cell phone insurance cover?
- Cell phone insurance covers you at a basic level in the event your phone is lost, stolen, or broken.
- Some regulations also offer coverage for:
- Unauthorized calls
- Accidental damage
- Telephone accessories
- Apps, games, music and other valuable content.
But policies vary significantly in both the scope they offer and their “exceptions” (things you are not protected from).
Do I need to insure my mobile phone?
Whether you need telephone insurance depends mainly on your financial situation and your attitude to risk. Try asking yourself this question: If I lose or damage my smartphone or get stolen, can I afford to have it repaired or replaced while saving money for everyday things like food and bills? If the answer is yes – or if, for example, you have an old phone that you can use until you can afford to replace it – then phone insurance is probably nothing to worry about.
Or try this: Am I inclined to lose or break something? Am I inclined to carry my phone in my coat pocket instead of in my zip bag (if you do, don’t judge)? If you suspect you are using a “high risk” phone, you will likely need more phone insurance than others.