Is phone insurance worth it?

Our smartphones are a huge part of our lives. They help us stay connected to friends, family, and the rest of the world. So when they break, it can be frustrating—and costly.

In 2023, the average cost of a smartphone was $823, according to Statista, a market and consumer data firm. Some popular options—like those from Apple®, Samsung®, and Google®—can even cost upwards of $1,000. If in need of a phone replacement, most people don't have that kind of savings. According to the Federal Reserve's 2022 Economic Well-Being of U.S. Households survey, 37% of Americans don't have enough money to cover a $400 emergency expense, up from 32% in 2021.

There is, however, a potential solution: a cell phone insurance plan.

Is cell phone insurance worth the money?

For the majority of people, it is. Most plans can come in handy if your device breaks, gets lost, or is stolen. They can help you avoid paying the full price of a replacement and protect you from accidents related to liquid damage and cracked screens. Plus, they give you peace of mind.

But phone insurance may not make sense for everyone. Let's see if it's right for you.

5 questions to consider if you're thinking about smartphone insurance

1. Do you rely on your phone for daily tasks?
2. Do you tend to drop or misplace you phone?
3. Do you have children who have cell phones?
4. If you're on a monthly installment plan, can you pay the full replacement cost while paying off your old phone?
5. Do you want tech support to help quickly activate a replacement phone on your carrier's network and transfer your data to your new device?

If you answered “Yes" to any of the above, a phone insurance plan might be right for you. Let's face it, the alternative means leaving your device unprotected.

3 reasons why people may skip phone insurance

1. Your phone is paid off, and you can afford to pay the full price of a new device if it ever gets lost, stolen, or damaged.
2. You don't rely on your phone for daily tasks and have the time to research and shop for a replacement device.
3. You're tech-savvy enough to activate a replacement phone on your own, including transferring data from your old device or the cloud.
4. You're not prone to these types of damage and live in an area without natural disasters. 

If this sounds like you, you could be among the small group of people who may not need device protection based on cost savings alone. But remember—you're busy, and your life doesn't stop because you cracked your screen. With phone insurance, you can get convenient repairs when you need them, whether it's a walk-in visit at a local store or a home visit by a qualified tech.

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What does phone insurance cover?

Every year, 19 million phones are lost or stolen, yet most warranties don't protect you from either. However, some phone insurance plans do. They also cover the following:

1. Cracked phone screen and other accidental damage
2. Smartphone loss and theft
3. Normal wear and tear related to dust, internal heat, and humidity
4. Water damage from spills or submersion
5. Mechanical failures and defects after manufacturer's warranty ends
6. Accessories that came with your devices, like the charger and earbuds

How does phone insurance work?

When you choose to protect your device, you receive comprehensive coverage for the items listed above, you save money, and you get convenience and peace of mind.

Most plans require a monthly premium plus a deductible when you file a claim. Doing so is easy and only takes a few minutes to complete online or over the phone. If you need help with the claims process, here is simple guide to filing a phone insurance claim with Asurion.

How phone insurance can save you money

Even if you wind up paying premiums and deductibles, phone insurance can help you avoid unexpected costs—especially if you're paying in monthly installments. Without insurance, if something happens and you still have a balance, you could end up paying for your old phone and a brand-new replacement. Most insurance deductibles, however, cost far less.

How phone insurance can save you time

Waiting around with a broken phone can be frustrating. With mobile phone protection, however, you can quickly get your device fixed, whether it's at your own home or a local repair shop. Either way, you'll have your phone back up and running as soon as the same day. And if a technician can't fix it, most replacement devices arrive in as little as 24 hours.

But don't just take our word for it: read ratings and reviews from actual phone insurance customers.