Insuring your cell phone is extremely important. Newer devices can cost upwards of $600, which is a hefty cost if you have to replace it out of pocket. Thankfully, insurance will cover the price of a device after a deductible, but what do these plans cover? Here is a general guide to what most insurance companies cover for your device. To get a more precise idea of what cell phone insurance companies cover, ask your individual company what they cover.
Initial Coverage
Most cell phone manufacturers will cover your device for the first year that you own it. This is a basic warranty which starts from the date you purchase the phone. These warranties protect against loss, theft, or damage. These warranties also cover any manufacturing defects that can occur with these devices. Some companies will also cover water damage from spillage or being dropped into a pool of water.
Each plan is different, but most will require you to pay a deductible in order to make a claim. These deductibles will go towards the cost of a new or refurbished phone. However, if it's a manufacturing error, the company will likely replace your device free of charge.
Extended Protection
After the one year period, you'll be uninsured. You'll probably want to cover your device at this point as well. Many major manufacturers and cell phone companies offer plans. Samsung and Apple both provide after-warranty protection that covers the same issues as the initial coverage period. You'll have continued protection from loss, theft, or damage. At this point, manufacturing errors are unlikely to be covered. However, having an extended protection plan will protect your phone from any major mechanical or operational problems.
Cost
The cost of each of these plans varies greatly. Many major wireless providers offer insurance for the devices that they sell. They generally range from $7 to $15 dollars per month with varying deductible amounts per claim. The best way to discover the exact price of your plan and the deductible is to ask your provider directly. Most companies charge deductibles and monthly costs based on a tiered plan. This tiered system is based on what type of phone you have. A phone that is $200 is going to be cheaper to insure compared to one that is $600. However, you can generally expect deductibles to range from $50 to $200.
Equipment
Many companies now provide equipment loss as well. Companies like Verizon and T-Mobile offer up to $1,500 coverage for any equipment that is lost or stolen with the device. This covers everything from the device to what you use for the device. If you dropped your phone in water with your earbuds, you're likely to receive coverage for the ear buds as well. Ask your insurance provider what equipment they cover for a claim. Just remember that the $1,500 covers the price of the device and whatever equipment you're claiming.
