Financial Planning, Polls

Why I Don’t Have Insurance on My Cellphone (and Why You Shouldn’t Either)

Why I Don’t Have Insurance on My Cellphone (and Why You Shouldn’t Either)

sophisticated spender cracked cell phone

Hello Sophisticated Spenders!

I am a terrible person when it comes to electronics.  I’ve lost at least 2 iPhones.  I lost an iPad mini.  And shattered several screens.

But I also do something else that’s crazy-I don’t carry cell phone insurance.  Here’s why:

1.  Cost: You will shell out $7-$10 a month on insurance.  So you are paying almost $200 bucks to insure your phone during your 2 year contract period.

2.  Deductible:  Those insurance plans also force you to pay a deductible if something happens to your phone.  There goes another $50-$100!

3.  The Replacement:  Often times you will receive a refurbished replacement phone (which happens to be someone else’s broken phone that was “fixed”).

4.  Technology:  By the time your phone is replaced (and you’ve shelled out almost $250 in insurance and deductible costs), your phone is officially a dinosaur and you’d rather have something new anyway (hello iPhone 36).

Instead of having cell phone insurance, here are a few other options:

1.  Call your carrier!  Thanks to Facebook, I now know that AT&T phones have a 1 year free warranty.  I cracked the lens on my camera.  I called customer service and was given 2 options:  Go into the nearest Device Service Center where they will fix (and most likely replace) my phone.  Or I can wait the 4-6 business days it will take them to replace my phone.  I decided to make an appointment at the Service Center.  My appointment is later today so I will write an update to the story.

2.  Insurance!  Call your insurance company and see if they offer insurance for your devices.  They normally just write a check instead of fumbling around with repairing and replacing your items. And there is normally no deductible.

3:  Do nothing!  I have been cell phone insurance-less for years and I don’t feel like I’ve missed out on anything.  I’m generally not a fan of paying the extra money for insurance that I probably won’t use.  And the customer service is never hassle free when trying to use said insurance.

[socialpoll id=”2272230″]

What do you think?  Am I crazy for not carrying cell phone insurance?  Do you have it?  Do you think it’s a great value?  What about the customer service?

I’d love to hear your experiences in the comments below?

***Click here to read the update***

  1. No, I don’t have cell phone insurance. I’ve never needed it…until now when my phone completely shattered a couple of weeks ago. I’m now using a cheap $50 smart phone as a replacement until August when my contract will be renewed and I’ll pay $200 then. I do miss my iPhone A LOT, but I’m also patient. The difference in price will go towards paying down debt/savings.

    1. Good job on being Patient Daphne. I know it feels like August is never going to get here. Lol. Thanks for your comment!

    2. Hi Daphne, we started for situations just like your own. For people who are very close to an upgrade and dont have insurance or don’t want to pay deductible. What do you think? We tried to make the price point as affordable as possible, knowing that its not for everyone.

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