When a consumer buys a new phone, one question that might be asked is whether the consumer wants to purchase insurance. Cell phone insurance is usually a monthly fee that ranges from $10 to $15 a month and promises to replace a phone in the event of damage or theft. Depending on the phone, this replacement may be free or it may come at a charge. Insurance is effective only while it is being paid for, so if the insurance coverage is dropped then the insurance premiums that were paid are lost. There are many factors to consider when thinking about whether cell phone insurance is really necessary, and much of it depends on the consumer and their cell phone habits.
How the Type of Cell Phone Affects Insurance
Cheaper phones may not merit carrying extra insurance for because the cost of the phone over a year would be fully subsidized by insurance payments. The consumer could simply set aside money every month in case their phone was lost rather than paying the cell phone provider. More expensive cell phones such as smartphones are more important to insure. More rugged phones are unlikely to become damaged, so (Read More....)
