Many people spend more on their smartphones than on computers – a new iPhone can cost several hundred dollars or more. Most wireless carriers and manufacturers offer insurance for a premium, giving you protection if you break or lose your phone. While this may seem like a good idea, it is important to weigh the pros and cons before you buy.

Pros of Buying Smartphone Insurance

If you have experienced broken and stolen phones in the past, you may be a good candidate for smartphone insurance. Here are some of the pros of having protection for your smartphone.

• Multiple repairs. If you tend to smash or drop your phone often, insurance may be a good option.
• Lost phones. While extended warranties will not help if you lose your phone, phone insurance through your carrier often will replace your phone if lost or stolen.
• Kid’s phone. Many parents opt for insurance for their kid’s phone, especially if they are irresponsible.

Cons of Buying Smartphone Insurance

When deciding to buy smartphone insurance, you need to make sure the cost is worth the benefits. Some of the cons of insurance include:

• High deductibles. Maybe you only need to pay $10-15 a month but if you have to pay a few hundred dollar deductible to replace your phone, that is a high cost for insurance. The monthly premiums over two years and deductible can come close to the cost of a new phone.
• Refurbished phones. Read the fine print – you may only receive a refurbished, not new, phone if you need a replacement.
• Limited use. Many insurance plans have a limit on how many times you can have your phone repaired or replaced.

If you tend to be careful with your phone, you may want to skip the insurance. This can save you $100-$300 or more per year off insurance (plus deductibles) that you can put toward repairs at a local cell phone shop if needed.

Posted on behalf of Cellairis