Phone insurance is a modern necessity, a way to protect one of your most vital possessions. But there are several missteps that you can make when purchasing your plan. Getting the most out of your phone requires putting in the time and research to find the best insurance plan to make sure you are protected from any calamity. The list below identifies some of the most common problems in buying phone insurance.
Not Buying Any Insurance in the First Place
The first mistake many people make as far as phone insurance is not buying any at all. Of course, wanting to save money on monthly expenses is certainly understandable. No one likes writing a lot of checks. The problem, however, is that phones break or get stolen. This is true no matter how careful you are; the most responsible cell phone user is still one fumble or light-fingered crowd member away from having to replace an expensive and necessary device. Think of phone insurance as a monthly payment against the necessity of replacing the phone, breaking the cost down into easy installments.
Not Comparing Rates
So you've accepted that phone insurance is necessary. But does this mean you should just check the insurance box on your carrier's plan page and be done with it? Not necessarily. There are a few different options for phone insurance, and you need to examine them. The primary concern here is cost — you should look at the replacement cost of your phone model, and compare it to the total cost of the plan's deductible and the monthly premium. If your phone is an older model, the cost of some insurance plans may end up pricier than just buying a replacement under the carrier plan.
Buying the Wrong Plan
Since the carrier plan may not be the perfect match for your needs, you should look at other options. There are several kinds of phone insurance plans available on the market, including the carrier plans, extended warranties, private insurance companies, and incidental coverage like renter's or homeowner's insurance. Each kind is offered by different companies, so you'll need to investigate the providers to find the best plan. Thankfully, you have access to the best archive of reviews in human history — the internet. For example, this Assurant review lets you evaluate several aspects of the company.
Not Knowing What is Covered
Another important thing to consider when looking at different plans is what kinds of replacement are covered. Extended warranties, for instance, mostly cover manufacturing defects and wear, and will not replace phones that have been damaged by external circumstances. Carrier plans and private insurance will cover a broader range of damage, albeit with a deductible in most cases. But they often have exceptions in coverage for certain catastrophes, like water immersion. Incidental coverage like homeowner's insurance only applies in rare circumstances, though the quality of the coverage in those situations is often high.
The insurance market can seem complicated, but as long as you keep your needs in mind and do your research, you'll find the right plan. Remember — better safe than sorry.
