Is Cell Phone Insurance Worth it?

is cell phone insurance worth it

Have you ever broken your phone? Chances are, if you’re anything like most people, you have. You know that sinking feeling when you drop your precious device and the screen shatters into a million pieces. Suddenly you’re faced with a choice – fork over a small fortune to replace it or suffer with a cracked screen.

Many companies offer insurance to protect your investment, but is cell phone insurance really worth it? Let’s discuss the pros and cons so to help you decide if it’s right for you. Stick around to find out if those monthly premiums are a smart use of your hard-earned cash or just a waste.

What Does Cell Phone Insurance Cover?

Cell phone insurance typically covers damage, loss, and theft of your device.


Accidents happen – you drop your phone and the screen cracks or it gets water damage. Cell phone insurance will help cover the cost of repairs or a replacement so you’re not stuck with a broken phone or hefty bill.


Sometimes phones just go missing. If your device is lost, cell phone insurance will provide funds to purchase a new phone. Some policies require a deductible for replacement, but it’s still less than paying full price for a new smartphone.


Smartphones are a hot item thieves like to take. Cell phone insurance protects you in case your device is stolen, providing money for a replacement so you’re not without a phone.

While smartphone insurance coverage varies between each insurance company, most cell phone insurance plan options cover common phone issues such as damage, loss, and theft. But insurance isn’t for everyone. If you have an older phone that’s already been paid off, insurance premiums may end up costing more than your phone is worth. But for those with new high-end devices, cell phone insurance plans provide valuable protection and peace of mind.

how much does cell phone insurance cost

How Much Does Cell Phone Insurance Cost?

Cell phone insurance plans typically cost between $7 to $15 a month depending on the value of your device and cell phone coverage selected. Less than your actual monthly cell phone bill! Known carriers offer their own insurance plans for $7-$15 a month with deductibles ranging from $50-$200. Some things to think about:

Premium vs. Affordable Plans

With these latest smartphones, premium insurance plans likely make the most sense given their hefty replacement costs. Budget-friendly or older cell phones could do fine with a more affordable plan. It depends on how much risk you’re willing to assume for your device.

Insurance Isn't Always Necessary

For some people though, insurance just isn’t in the budget or seems unnecessary. If you have a solid case, screen protector and are extremely careful with your phone, you may feel comfortable going without. However, if your phone is lost, stolen, or sustains serious damage, the cost to replace or repair it could exceed the total cost of premiums paid. It depends on your tolerance for risk and how much you rely on your device.

Overall, cell phone insurance provides peace of mind and financial protection for your investment. Evaluate plans and coverage carefully based on your phone’s value and needs to determine if the cost is worth the benefits. Your wallet and sanity will thank you if disaster strikes.

Pros of Getting Cell Phone Insurance

Cell phone insurance offers several benefits that may be worth the monthly premiums.

Getting Peace of Mind

For a lot of people, the biggest benefit of insurance is the peace of mind it provides. Knowing your phone is protected in case of loss, theft, or damage can give you reassurance, especially if you have an expensive device. With insurance, you can feel confident using your phone without worrying as much about risks.

Affordable Repairs or Replacements

Again, if your phone is lost, stolen, or damaged, cell phone insurance will help cover the cost of repairs or a replacement. Without insurance, a single repair or replacement phone could cost $500-$1,000 or more, depending on the model. Insurance premiums, on the other hand, typically range from $5 to $15 a month—a lot more affordable! Insurance will reimburse you for covered losses according to the limits of your policy so you’re not stuck paying expensive out-of-pocket costs.

Extensive Coverage

Cell phone insurance usually provides coverage for a variety of scenarios like accidental damage (drops, spills, etc.), loss (where is my phone?!), and theft. As long as the incident is covered under your policy terms, insurance should help cover repairs or a replacement phone so you can get back to using your device again as quickly as possible. Some plans even offer additional coverage for tech support and device replacements within the first year of purchasing a new phone.

While cell phone insurance isn’t everyone’s choice, for those who want to protect their investment or gain peace of mind, the pros of affordable coverage, extensive protection, and reassurance can certainly outweigh the costs. Evaluate your needs and the risks to your device to determine if cell phone insurance makes sense for your situation.

cons of getting cell phone insurance

Cons of Getting Cell Phone Insurance

Cell phone insurance plans aren’t for everyone. Before starting to sign up, consider some of the potential cons:

Premiums Add up Over Time

Monthly insurance premiums may seem affordable at first, but they could cost you hundreds of dollars each year. If you don’t make a claim, that money is gone. Some carriers charge deductibles for each approved claim too, so you still have to pay out of pocket.

Limited or Excluded Coverage

Most cell phone insurance plans don’t cover loss, theft, or damage from natural disasters like floods or fires. They also typically exclude “cosmetic” damage like scratches or dents that don’t impact function. Make sure you understand exactly what events and types of damage are covered under the policy before paying your premiums.

Replacement Phones Could be Refurbished

If your phone needs to be replaced due to a covered claim, the replacement device you receive could be refurbished, not new. Refurbished phones have been repaired and restored to working condition, so they may show signs of wear or have shorter battery lives. If having the latest technology is important, insurance may not provide the coverage you really want.

Carrier's Warranty Could be Enough

Most cell carriers offer a standard 1-year warranty on new phones that covers manufacturer defects for free. As long as you handle your phone with reasonable care, the warranty should protect you from issues within the first year of ownership at no cost. If you’re someone who upgrades frequently, the carrier’s warranty alone may suffice.

While cell phone insurance does provide some peace of mind, for many users the additional costs and limitations mean it may not actually be worth the money or meet their needs. Think about your tech habits and needs to determine if insurance should be part of your mobile budget.

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