Should You Get Cell Phone Insurance?

If you are like most people, life without a cell phone seems incomprehensible. If you break or lose your phone, replacing it can be expensive. As a result, you may want to consider buying insurance. When you buy a new cell phone, your carrier will offer you cell phone insurance. The monthly amount may be small, but it adds up over time. For many people, the cost is not worth it. In fact, some people recommend against getting this insurance. In some instances, however, you may benefit from acquiring a policy.

Who Needs It?

Statistics show that only about 20% of people lose their phone, damage it severely, or have it stolen. As a result, many experts say to forgo the insurance. However, this advice does have exceptions. If you have a history of losing or breaking your phone, have small children, or can't afford to replace a phone, paying a small monthly amount for protection may well be worth it simply for your peace of mind. Also, if you routinely invest in the latest and most expensive cell phone technology, an insurance policy may be a wise choice for you. Losing a $1000 phone right after you purchase it can wreak havoc on your budget.

Policy Types

You can buy insurance through your carrier, which will cost you about $10 a month. You can find cheaper policies through a third party carrier that specializes in this type of insurance, but they generally do not provide as comprehensive of coverage. A good carrier policy should cover damage, theft, malfunction, and loss. Some lesser policies have significant deductibles and may not cover everything that can happen to your phone.

Some homeowner's policies will cover your cell phone. If your insurance company allows this practice, you should take advantage of it. This method will provide you excellent coverage and cost less than other policy types. Consult with your insurance agent to find out the level of coverage that your homeowner's policy will provide.

Cell phones are ubiquitous in today's society, and if you lose or break your phone, replacing it will be a top priority. However, not everyone has the cash on hand to buy another one outright. For those people and others who are prone to cell phone mishaps, purchasing a cell phone insurance policy is a good idea. Before saying yes to your carrier's offering, check out your other options. You may be able to find a less expensive policy through your insurance agent. Contact a company like Knepper Insurance Group for more information.