Smartphone Insurance 101

Smartphone are expensive and easy to lose, break or stolen, this is why smartphone or cellphone insurance is in demand nowadays. Smartphone insurance covers lost, stolen or damaged phones. However, you should take note of the following information about this kind of insurance:

1. Deductible can be as much as the cost of the smartphone - iPhone 6S with a 2-year contract from Sprint is priced at $199.99. The Sprint’s Total Equipment Protection insurance costs $11 per month. Unfortunately for you if you lost or break your smartphone the insurance deductible will be $200.

This happens since carriers heavily subsidize smartphone prices if you purchased it with a contract. The retail price for an iPhone 6S is about $650. Installment plans, which often require no upfront payment for the phone, they simply spread its cost out over your contract term.

2. The Insurance Company will Determine the Replacement Smartphone - Your insurance company will have the final say on the replacement smartphone it may be of the same make and model, it maybe of different color or type. It may also be refurbished.

3. Carrier companies can dropped you from your plan for making a claim - Most insurance providers limits customers to two claims in a 12-month period. This can be a problem for people that are particularly accident-prone. The trouble is, those are the people for whom cellphone insurance makes the most sense.

Here are Cellphone protection plans:

AT&T -
Monthly fee: $7.99.
Deductible: $50-$199, depending on device. They offer declining deductible program that can give you 25% to 50% less.

AppleCare+ -
Cost: $99-$129 for two years of coverage.
Covers: Damage (two incidents) and phone malfunctions.
Deductible: $79 or $99 per incident, depending on model.

T-Mobile -
Monthly fee: $10.
Deductible: $20-$175.

Sprint -
Monthly fee: $9-$11
Deductible: $50-$200, depending on device.

SquareTrade -
Cost: $119 for two years of coverage.
Covers: Damage and phone malfunctions.
Deductible: $99 for all claims.

Verizon -
Monthly fee: $7.15 (smartphones), $5 (basic phones, tablets).
Deductible: $99-$199 (smartphones), $49-$199 (basic phones, tablets).