Most consumers buy insurance for ultra-expensive items that they could not afford to replace in the event of an accident. But insurance on a cell phone does not really offer that great a benefit for the money that you spend on it. Let’s take a look at what you are investing in the insurance and what you could potentially get if you are need to make a claim.
The Real Cost
The average cost of cell phone insurance is about $5 a month. So over the course of each year you are investing $60 total. Then there is the cost of the deductible because that is just a fact of almost every type of insurance policy. In the case of cell phones the magic number for deductible appears to be around $150. So if you have a year old phone and need to get it replaced, the least you have spent is $210 including the monthly payments and the deductible. And if your phone is 2 years old then you have invested $270 for the replacement.
A More Affordable Option
Most of the time, adults are pretty dependent on their cell phone and rarely let it out of their sight. So the insurance policy is really to cover any damage to the phone. But what consumers are not considering is that a broken screen can be replaced at a local cell phone repair shop in just a few minutes at for around $100. Likewise, damaged buttons and jacks can also be replaced for much less than just the cost of most insurance policy deductibles.
Make the Smart Choice
Save the monthly cost of insurance and use that money to have a qualified cell phone repair store fix any damage that might occur.