Do you need to buy phone insurance? Maybe not.

Phones aren’t just “phones” anymore. For most people, a smartphone is a phone, wallet, camera, map, source of income, and so much more—all wrapped into one device. As smartphones become more essential to our daily lives, they become more susceptible to theft and accidental damage. 

Oh, and they aren’t cheap.

Why consider phone insurance?

We get insurance for the things we own that have financial value: our homes, cars, and jewelry. As the price of personal smartphones goes up (average cost will be over $1,000 by 2027, according to Statista), cell phone insurance seems like a no-brainer. 

Here are some reasons that consumers consider getting phone insurance:

• High costs of repairs. Cracked screens happen… a lot. Repairing a cracked screen on an iPhone® or Samsung Galaxy® can cost $200 or more, depending on the model and the extent of the damage. Keep in mind that every new smartphone model will have an improved screen that will likely cost more to repair.
• Accidental damage happens often. What do you get when human error mixes with small, slick devices? Toilet drops, spins in the dryer, and countless other goofs. It happens to the best of us, so best to get that phone insured.
• The headache of a stolen or lost phone. One in ten smartphone owners has reported a stolen phone. And with good reason: not only are the devices valuable, but they also contain valuable personal information that makes owners susceptible to identity theft. Without coverage, replacing a lost or stolen phone can take a long time, resulting in potential lost wages.
• Better than a manufacturer warranty: Phone insurance goes beyond basic manufacturer warranties. For example, if your phone’s charging port is faulty, you’d get full coverage under the warranty because that is a manufacturer error. However, if your charging port is faulty due to accidental submersion in water, it may not be covered by the warranty.

Above all, one of the most important considerations for getting phone insurance is to simply ask yourself: If you break your phone tomorrow, would you be able to afford a new one? If the answer is no, start looking at phone insurance options.

What’s typically included in a phone protection plan? 

Manufacturer’s warranties offer a sliver of peace of mind, but won’t always cover the biggies. Here’s what’s typically included in a phone protection plan, like the ones offered by Asurion:

• Cracked screens and other accidental damage that affects functionality
• Loss and theft
• Normal wear and tear related to dust, internal heat, and humidity
• Water damage 
• Mechanical failures and defects after the manufacturer's warranty ends
• Accessories that came with your devices, like a charger

When might phone insurance not be necessary? 

Here are examples of situations where phone insurance may not be necessary:

• The user’s phone is older and less expensive than newer models.
• The user rarely drops or loses their devices (if this is you, teach us your ways).
• The user gets some coverage through their renters’ or homeowners’ insurance policies. (Side note: always check the fine print of what is and is not covered in these policies.)

Simply put, phone insurance is a small investment that could save significant time, money, and stress. If you’re in the market for a protection plan, see how Asurion can help. 

FAQ

What does phone insurance cover?

Phone insurance coverage varies by carrier and provider, but there are a few things typically covered:

• Accidental damage. Covers drops, cracks, and liquid spills that can affect your phone’s functionality.
• Mechanical or electrical failures. Covers malfunctions not caused by physical damage, such as touchscreen issues or battery failures.
• Loss and theft. Many plans offer coverage if your phone is lost or stolen, helping you replace it quickly.
• Defective accessories. Some plans include coverage for accessories like chargers or earbuds that came with your phone.
• Expert tech support. Some plans provide access to tech experts who can help troubleshoot issues with your phone, apps, and more.

Does phone insurance cover water damage?

Many phone insurance plans, like the ones offered by Asurion, cover accidental water damage. 

Is phone insurance better than a case and screen protector?

Yes. Cases and screen protectors are only good for protecting against screen damage. Phone insurance covers screen damage plus loss, theft, and other accidental damage. 

What’s the difference between a manufacturer’s warranty and phone insurance?

A manufacturer’s warranty typically only covers defective parts. Insurance plans cover loss, theft, and accidental damage. Learn more: Cell phone insurance vs warranty: what’s the difference?