If I have cell phone insurance, what does it cover?
Cell phone insurance typically covers accidental damage, cracked screens, loss, theft, and post-warranty mechanical failures.
✅ What is Generally Covered
- Accidental Damage: Drops, shattered screens, and structural breaks from handling.
- Liquid Damage: Spills, submersion, and water corrosion.
- Loss and Theft: Complete disappearance or stolen devices (note: basic warranties exclude this).
- Mechanical/Electrical Breakdown: Hardware or battery failures occurring after the manufacturer's warranty expires.
- Natural Disasters/Power Surges: Damage from events like lightning surges or floods (depending on the provider).
⚠️ What is Usually NOT Covered
- Normal Wear and Tear: Cosmetic scratches, scuffs, or gradual depreciation that don't affect function.
- Intentional Damage or Neglect: Leaving the phone out in the open recklessly or intentional destruction.
- Software Issues & Viruses: Malware, hacking, or standard data loss (unless tech support is bundled).
- Pre-existing Conditions: Damage that happened before you enrolled in the insurance plan.
- Lost Accessories: Unattached items like standard charging cables or cases (unless the entire phone is lost/stolen with them).
💡 Key Things to Keep in Mind
- Deductibles: You will usually pay a service fee or deductible ($25 to $150+) per claim when repairing or replacing a device.
- Limits: Many standalone plans cap the number of claims you can make per year (e.g., 2 to 3 claims) or cap the maximum payout value per incident.
- Credit Card Perks: Check your wallet—some credit cards provide free secondary cell phone protection if you pay your monthly phone bill with that card.
Is it worth having insurance on a cell phone?
Cell phone insurance is generally worth it if you own a high-end, expensive device that would strain your budget to replace, but it is a waste of money for budget phones or if you have enough cash savings to pay for repairs out of pocket.
✅ When Insurance Is Worth It
- High-end devices: Flagship phones cost $800 to over $1,000 to replace.
- Tight cash flow: A surprise $300 screen repair breaks a fragile monthly budget.
- High-risk environments: You work outdoors, travel constantly, or have clumsy habits.
- Kids and pets: Children or pets handle your device regularly.
- Work reliance: You cannot do your job without immediate phone access.
📉 When Insurance Is a Waste
- Cheap or older phones: Replacement or repair costs are lower than total premiums paid.
- You have an emergency fund: You can easily absorb a $300–$400 repair bill.
- Careful handling: You always use thick protective cases and high-quality screen protectors.
- Existing free coverage: Your credit card already covers phone theft/damage if you pay the bill with it.
📊 Comparing Your Protection Options
| Option | ✅ Pros | ⚠️ Cons / Hidden Costs | Best For |
|---|---|---|---|
| Carrier Insurance (Asurion/Assurant via AT&T/Verizon/T-Mobile) | * Covers loss, theft, and accidental damage * Fast replacements | * High monthly fees ($7–$18/mo) * High deductibles ($50–$250) | People wanting all-in-one theft and loss protection. |
| Manufacturer Plans (AppleCare+ / Samsung Care+) | * Lower monthly cost or flat fee * OEM parts and official repair | * Usually excludes loss/theft (unless upgraded) | Careful owners of new flagship devices. |
| Credit Card Perks (Free with monthly bill payment) | * Zero extra monthly cost | * Secondary coverage * Strict paperwork rules | Anyone holding a qualifying premium credit card. |
| Self-Insuring (Saving cash independently) | * Keep 100% of your money if nothing breaks | * Full financial hit if catastrophe strikes | Disciplined savers with moderate phone values. |
When should you cancel cell phone insurance?
You should cancel cell phone insurance when your phone is fully paid off or when the yearly cost of the plan reaches a quarter of the device's current market value.
When to Cancel Phone Insurance
- The phone is paid off: Once you no longer owe money on the device, the risk of being stuck paying for a broken phone while still making monthly finance payments goes away.
- The cost is too high: Cancel the plan if the annual cost of the insurance equals 25% or more of the phone's current replacement value.
- The phone is old: Most experts recommend dropping coverage after two years, and stopping it completely no later than three years after the device's release date.
- You would just upgrade: If your phone breaks and you plan to buy a brand new model instead of repairing it, the insurance is a waste of money.
- You have another option: If you pay your monthly phone bill with a credit card that offers free cell phone protection benefits, you can safely drop your carrier plan.
If I have cell phone insurance, what does it cover?
Standard cell phone insurance typically covers accidental damage, loss, theft, and post-warranty mechanical failures.
What Is Generally Covered
- Accidental Damage: Cracked screens, drops, liquid spills, and internal damage caused by sudden mishaps.
- Loss and Theft: Complete replacement if your phone is stolen or permanently lost (note that some basic protection plans exclude this, so check your specific tier).
- Mechanical or Electrical Breakdown: Internal hardware failures that happen after the manufacturer's warranty expires.
- Battery Failure: Degradation or battery replacement under comprehensive or premium plans.
What Is Generally NOT Covered
- Normal Wear and Tear: Cosmetic scratches, scuffs, or general degradation that doesn't affect how the phone works.
- Intentional Damage or Negreck: Deliberate harm or leaving your phone completely unattended in a high-risk situation.
- Pre-Existing Conditions: Damage that occurred before you signed up for the insurance policy.
- Unauthorized Repairs: Damage caused if you tried to fix the phone yourself or used a non-certified repair shop.
Note: Most plans require you to pay a monthly fee plus a deductible or service fee when you actually file a claim to repair or replace the device.
What are the benefits of having cell phone insurance?
Mobile insurance saves you from high repair or replacement costs when your smartphone gets damaged, lost, or stolen.
Key Benefits
- Accidental and Liquid Damage: Covers drops, cracked screens, and water or liquid spills that standard manufacturer warranties usually reject.
- Theft and Burglary Protection: Reimburses or replaces your phone if it is stolen during a robbery, burglary, or forced snatching (often requiring an FIR).
- Cashless Repairs: Eliminates upfront out-of-pocket repair costs through direct settlement with authorized service networks.
- Doorstep Pickup and Drop: Offers free home collection and delivery for device repairs through providers like OneAssist.
- No Claim Bonus (NCB): Rewards you with lower renewal premiums or extra benefits if you do not file any claims during the policy term.
Is phone insurance worth it? | Asurion
9 related questions found
How much does phone insurance usually cost?
Phone insurance usually costs between $7 and $19 per month per device, totaling roughly $85 to $230 annually.
The exact price varies significantly based on your phone’s retail value, whether you buy from a major carrier, and the level of coverage you choose. In addition to the monthly premium, you must also factor in deductibles ranging from $0 to $275 per claim depending on the type of damage.
Typical Cost Breakdown by Provider
| Provider Type | Examples & Subscriptions | Deductible Ranges | Key Considerations |
|---|---|---|---|
| Major Wireless Carriers | • AT&T Protect Advantage: $16 – $19/mo • T-Mobile Protection 360: $7 – $26/mo • Verizon Mobile Protect: $16 – $19/mo | • $0 for screen repair • $99 for other damage • $149 – $275 for loss/theft | Convenient billing, but typically the most expensive monthly premiums. Often includes technical support. |
| Device Manufacturers | • AppleCare+ (with Theft & Loss): $8 – $14/mo (or $149–$269 upfront for 2 years) • Samsung Care+: $3 – $18/mo | • $29 for screen/back glass • $99 for other damage • $149 for loss/theft | Great for certified repairs using original factory parts, but you usually have to sign up within 60 days of buying the phone. |
| Third-Party Insurers | • Progressive / Worth Ave. Group: $7 – $12/mo • Allstate / SquareTrade: $9/mo • AKKO: $10 – $15/mo | • $0 – $75 for repairs • $75 – $150 for replacements | Often cheaper, and plans can sometimes cover used, older, or refurbished phones. |
Hidden Out-of-Pocket Costs
Insurance is rarely a "free fix." When you file a claim, you pay a deductible.
- Screen Repairs: Usually the most affordable fix, ranging from $0 to $29.
- Full Replacement (Loss/Theft): If you lose your phone or it is stolen, you will likely face a steep replacement fee between $150 and $275 to get a refurbished replacement device.
Cost-Free Alternatives
Before purchasing a standalone policy, check if you already have coverage:
- Credit Card Protection: Many credit cards—such as the Capital One Venture X or certain Chase and Wells Fargo cards—offer complimentary cell phone protection against damage and theft simply for paying your monthly wireless bill with that card. Deductibles are typically a flat $25 to $100.
- Homeowners or Renters Insurance: You can often add a cheap "scheduled personal property" rider to your existing policy to cover electronic devices for a few extra dollars a year.
Who offers the best mobile phone insurance?
The best mobile phone insurance depends on whether you want the cheapest price, unlimited claims, or charity support, with top independent providers like Protect Your Bubble, Insurance2Go, and loveit coverit offering strong coverage starting from under £2 to £5 a month.
Top Providers and Features
- Best for Value: Insurance2Go offers essential coverage starting from £1.99 per month and full cover (including loss and theft) from £3.49 per month with unlimited claims.
- Best for Customer Ratings & Perks: Protect Your Bubble provides comprehensive plans covering damage, theft, breakdown, and loss, with automatic 20% discounts for phones purchased in the last 30 days.
- Best for Low-Cost Models: loveit coverit has flexible rolling contracts starting from £1.65 per month for budget devices up to higher tiers for flagship phones, plus unlimited claims.
- Best for Ethical Giving: Arma Karma donates 25% of its subscription profits to a charity partner of your choice while covering loss, theft, damage, and breakdown.
- Other Competitive Options: Forbes Advisor UK highlights providers like Dynamo Gadget and CoverCloud Elite for reliable unlimited claims and balanced excess fees. You can also compare community-reviewed choices on Trustpilot.
What to Look For
- Level of Cover: Essential plans usually only cover accidental damage and mechanical breakdown, while Full/Elite plans add theft and accidental loss.
- Excess Fees: Check the upfront fee you must pay when making a claim, which typically ranges from £50 to £200 depending on the policy.
- Phone Age Limits: Many standalone insurers require your device to be purchased within the last 12 to 36 months.
How long should you keep insurance on your cell phone?
You should generally keep cell phone insurance for no more than 18 to 24 months, and rarely past 3 years.
When to Cancel Cell Phone Insurance
- The phone is paid off: Many users on Reddit agree that once you finish paying off your device, it is time to drop the coverage because older phones lose market value quickly.
- The value drops: Cancel the plan when the yearly cost of insurance equals a quarter (25%) of your phone's current market value.
- Payments equal one-third of the cost: A good rule of thumb is to stop paying once your cumulative insurance premiums reach one-third of the device's original retail price.
When to Keep It Longer
- High replacement cost: If you own an expensive flagship or foldable device that costs over $1,000 to replace, a longer protection window (up to 24 months) makes more financial sense.
- High accident risk: If you work in rough outdoor environments or have a proven history of dropping and breaking devices, coverage is safer to maintain while the phone still holds notable value.
Can I cancel my phone plan if my phone isn't paid off?
Yes, you can cancel your phone plan if your phone is not paid off, but the AT&T Wireless Return Policy and major carriers require you to pay the remaining balance of your device immediately.
What Happens When You Cancel
- Remaining Balance Due: The total remaining cost of your phone financing agreement becomes due right away.
- Final Bill: This remaining device balance will show up on your final bill from your carrier.
- No Prorating: Most carriers do not prorate your final month of service, meaning you must pay for the entire billing period even if you cancel early.
- Promotional Credits Lost: If you were receiving monthly bill credits to pay off the phone, canceling early often voids those promotions, and the full remaining retail price becomes due.
- Collections Risk: Ignoring or failing to pay the final lump-sum device balance can send your account to collections and hurt your credit score.
Switching to a New Carrier
- Keep Your Number Active: Do not cancel your old plan manually if you want to keep your phone number. Sign up with your new provider first and port your number over; this automatically cancels your old service.
- Device Payoff Still Applies: Switching carriers does not erase what you owe for the hardware. You will still get a final bill for the remaining price of the phone from your old carrier.
- Carrier Lock: Your phone will usually remain locked to your current carrier until the device is completely paid off and unlocked.
What are the best phone insurance plans?
The best phone insurance plans depend on whether you want coverage from your phone's manufacturer, your wireless carrier, or a third-party company.
1. Best for New Flagship Phones: AppleCare+ or Samsung Care+
Manufacturer plans provide the most comprehensive, direct support for brand-new devices.
- AppleCare+: Starts at about $9.99/month for iPhones. Screen repair deductibles are just $29, while loss and theft coverage plans carry a $269 deductible. You must enroll within 60 days of buying the phone.
- Samsung Care+: Covers accidental damage, theft, and mechanical breakdowns for Galaxy devices, with fast repairs using genuine Samsung parts.
2. Best Third-Party Insurer: Akko
Independent providers are ideal if you have a used/refurbished phone or want to bundle multiple electronics.
- Akko: Plans start around $4.99 to $14.99 per month. They cover accidental damage, mechanical issues, and theft/loss options depending on the tier. Screen repair deductibles range from $29 to $99.
3. Best for Families and Heavy Users: Carrier Plans
Wireless carrier plans are convenient if you buy your phone directly from the carrier and want bundled tech support.
- Verizon Mobile Protect or AT&T Protect Advantage (by Asurion): Run about $14 to $17 per month per line. They offer same-day/next-day replacements, unlimited claims, and $0 cracked screen repairs on select models.
- T-Mobile Protection360: Includes hardware service, theft/loss protection, and built-in security apps.
4. Zero-Cost Alternative: Credit Card Protection
- Cards like the Capital One Venture X Rewards Credit Card, Chase Ink Business Preferred® Credit Card, and American Express The Platinum Card® offer up to $800–$1,000 in cell phone protection per claim if you simply charge your monthly wireless bill to the card. Deductibles are usually low ($50–$100), though loss is typically excluded.
You can read a detailed breakdown of options in this Guide to Cell Phone Insurance.