Should you buy cell phone insurance?

cell-phones

By My Fox Philly

To buy or not to buy? That is the question when it comes to buying insurance for our cell phones.

When does it ever make sense to buy insurance? Is it worth spending the extra $200 in case your screen is cracked or you lose your phone? Financial expert Dan Roccato brought some answers during his visit to “Good Day Philadelphia” on Monday morning.

If you do chose to get insurance for your phone you must ask yourself whether to get the insurance through your provider or the manufacturer. It seems that cell phones are getting smarter but not stronger.

Apple Care is a pretty good insurer and may be cheaper than your service provider. They offer two years of insurance for around $150. Apple will cover your phone if you have mechanical issues such as a cracked screen or a hardware issue for $79. The con to Apple Care, however, is that it will not cover you if you lose your phone or if it is stolen.

If you choose to get insurance through your service provider, it may cost you a bit more. Your service provider may not cover you if your phone is cracked, but it will cover you if you lose your phone or it is stolen. The deductible on this insurance is significantly high and could cost you up to $200 for a new phone.

If you do purchase an iPhone 6 or the new Android, then buying insurance is your best bet. If you can’t decide, then here are some tips that could help:

  1. Only get insurance for a year and drop it, especially if you are one of those people who update their phone every two years.
  2. If you are getting an older-model cell phone, then you may not need to get insurance.
  3. Make sure the insurance you chose has coverage for both lost/stolen phones as well as physical damage.

 

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