Whether it’s a cracked screen or an unexpected swim, it doesn’t take much to damage a cellphone.
Cellphones have become a vital piece of our everyday lives. Beyond the connection of texting and calling, phones are a link to the internet from anywhere and have apps to help you with anything from calculations to games to home security.
Depending on the damage and the cost of the phone, a repair could set you back a couple hundred dollars. A replacement phone could set you back even more dramatically, with many phones currently priced at over a thousand dollars. If you aren’t prepared for the price tag and have to cover the cost yourself, it can be a painful experience to regain the use of your cellphone.
Just like car or home insurance, you can also insure your cellphone to help avoid paying the high costs associated with the repair or replacement. But is it worth the insurance? We’ve put together this guide to help you decide if it’s right for you.
Phone Coverage Plans: How They Work
Insurance coverage is very similar to other types of insurance. First, you’ll need to choose a coverage plan for the insurance. You do have some options as these plans can be offered by the cellphone carrier, insurance companies, or other third-party retailers. Be aware that some plans are only available for enrollment in the initial period after you’ve purchased your phone.
Not all the plans offer the same pricing and there’s a large variety in coverage available. You’ll need to explore the different options and ensure the plan you choose covers the type of damage that you’d like to be insured for.
Each plan has a premium that you’ll need to consider. This is the payment, typically paid monthly, that you’ll make in exchange for the coverage of the plan. Some companies will offer different tiers of insurance, with a price and coverage increase from the base plan to the top pier option. These premiums will usually fall anywhere in the price range of $6 to $40 per month.
Once your cellphone is covered by insurance, you’ll need to file a claim if you’d like an incident covered. Depending on your plan, this could include a cracked screen, water damage, power button or battery failure, or other problems you encounter.
This claim will enable the company to either repair the damage to your phone or to ship you a replacement phone. There will be a limit to the number of claims that you can make or the amount they’ll pay out each year based on your plan.
There is a deductible for each claim that you’ll need to pay, and the cost will differ for each service. For example, the cost of a cracked screen repair will likely be lower that the deductible cost for a replacement phone.
Are They Worth It?
Now it’s time for the important question, is phone insurance worth it? That decision is up to you but will ultimately depend on your situation and how the loss of access to your phone will impact you.
Questions that you’ll want to ask yourself that can help you decide if the insurance is worth it for your phone:
Do you have the savings to cover the cost of a new phone?
Do you rely on your phone for work or personal reasons?
Do you tend to drop or lose your phone?
Is your phone waterproof or water resistant?
Have you had a cellphone stolen in the past?
Do you have children who will utilize the phone?
Compare your options for insurance and for the cost of repair or replacement. If you find that you may be more at risk of a damaged phone or that replacing it may be difficult for you, then you’ll likely want to consider having phone insurance. This can help ensure that you have access to your phone when you need it and without breaking the bank.
Wasatch Peaks offers our Benefits Plus® program, available for only $6 a month with any Wasatch Peaks checking account. This program includes access to Cellular Care Coverage, which covers up to $1,000 annually for the repair of theft costs of your cell phone!