Do you know what you’re getting in the form of cell phone insurance? What exactly does your premium cover? Here’s everything you wanted to know about the real cost of cell phone insurance, and what you’re getting in return.

Cell Phone Insurance

Factors To Consider

Evaluate your own needs and habits – how soon do you think you’ll need a new phone? If you have a tendency to misplace your phone, or if you have a history of having your phone stolen, insurance will save you money in the long run. Evaluate the following questions with regard to your personal situation, and you’ll understand the cost of cell phone insurance as it pertains to you.

How many claims are you allowed?

Find out how many claims your insurer will allow you per year, and what will be the limit per claim. For example, a good insurer such as should allow for at least 2 claims in a year, and no less than 3 claims in two years. Plus, the claim value shouldn’t have an overall cap.

What’s The Deductible You’re Required To Pay?

A deductible is the sum you are required to pay your insurer towards your replacement phone. This amount shouldn’t be more than $75 to $100 for Androids and Blackberries, and under $200 for iPhones. If your deductible is higher than this, you’re insured with the wrong provider. In such a case, it makes sense to get the damage handled outside of your insurer’s purview, than waste money on a high deductible.

How Fast Is The Replacement Phone Handed Over?

How fast will your claim be processed? Will it take an entire week or more? No good insurer should take more than 4 business days to replace your device. At the very least, the insurer should update you as to delays and their reason within a day or two. As more time lapses, your loss will be higher – calls, business, and usage out of your cell phone. You need to add those costs to the cost of insurance. It helps if your insurer has a 24/7 claim center so that you can process your claim quickly.

What Kind Of Device Is Offered As Replacement?

You want an insurer that agrees to replace your device with a suitable replacement. It’s understandable if your insurer cannot guarantee a brand new device as replacement, but they should replace your model or very close to it. If the insurer offers an inferior cell phone as replacement, then your insurance costs are definitely higher. Find out about replacements early on, and talk to other consumers to get an idea of their actual experience.

Find Out If The Coverage Is Comprehensive

You need the best coverage you can get, but that depends on what you want. Broadly, if you want coverage for loss, theft, damage and mechanical failure, insurers that doesn’t offer comprehensive coverage will charge for each cover. A comprehensive coverage takes in liquid damage, cracked glass, mechanical failure, loss and theft under one umbrella, and offers manageable deductibles and premiums. The recommended approach is to compare offerings from various insurers and look for the best, all-in-all, comprehensive coverage where you benefit the most.