- Should you get a prepaid phone plan or one with a monthly fee?
- Do you need a Smart phone?
- How many minutes, texts and data megabytes do you need?
- Do you want phone insurance?
That last question isn’t surprising these days. Retailers try to sell purchase protection for every electronic sold even the lowest cost small kitchen appliances! But is it a good idea?
Benefits of Cell Phone Insurance
If you are someone who seems to go through cell phones like water through a hose, then you might want to consider insurance even if it is a free tmobile phone. I know people who have lost use of their phone by one or more of the following: dropping it in the toilet, running it through the washer (in pocket), dropping it or just plan losing it.
A person with an expensive phone and bad luck might want to consider the insurance offered by your cell phone carrier. You’ll quickly get another phone.
Negatives of Cell Phone Insurance
That quick replacement comes with a cost on top of the monthly insurance fee added to your phone bill (which runs between $5 and $12 depending on the coverage and equipment).
The policy usually has a deductible. The four main carriers all use the same company, Asurion, which has an $89 deductible according to Business Week.
Don’t think you’re getting a new phone though. You are very likely to receive a refurbished phone instead of a new one. If your phone is no longer available, they’ll make a substitution which you may consider inferior.
I don’t think paying for cell phone coverage makes sense in general and definitely not past the first six months you’ve owned it. Instead save that money and buy a replacement on Craigslist or EBay if needed. What do you think about cell phone insurance?