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.

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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***

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