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Is cell phone insurance worthwhile?
Results so far:
| Yes | 41% | 166 votes | Total: 408 votes | |
| No | 59% | 242 votes |
Yes
by Amer Numan
Created on: December 09, 2008
I am definitely not the type of consumer who falls for the add-ons. You know, the "protection plan" for every piece of electronics I buy at a retailer, the "express service maintenance add-on" on a new car, spending the extra $0.40 to get 10 more fries, that type of stuff. I have to admit, however, that purchasing cellphone insurance for my advanced hand-held was one of the only (and most strategic) add-on purchases I have made in a long time.
I always evaluated an insurance plan based on the item you are protecting it with; the price of that item, how easily damaged it is, likeliness for me to use the money I invested in my policy on it etc. For the longest time, a cellphone was "just that" to me; a small, simple wireless device that lets me make a quick call when I'm on the move, generally worth less than $100 and probably a temporary possession I eventually break and replace pretty apathetically.
For me and many people these days, a cellphone is no longer what I just described. It is in fact a mini-laptop-computer that runs lives. It carries our calendars, reminders for hundreds of current and future events, links to frequently used websites, and even stored information to bank, monitor our stocks, and pay bills on the move. Many cellphones have replaced our digital cameras and iPods. Some are even our lifelines on the road, replacing navigation devices and sending out emergency GPS signals in times of need. Mine is also the alarm clock that woke me up this very morning and will do so tomorrow morning.
Above all, they now cost between $200-$700 depending on different combinations of the features mentioned above.
This compels me to view an insurance product in a different light, just by reminding myself of how much I'm really insuring. Especially when it costs a small monthly fee (generally under $10 depending on your provider). In my case, I'm protecting my music player, GPS, camera, PDA, phone, web browser, and portable video game machine by protecting my cell phone. By losing it, I lose all those things. By getting a replacement for it if it's compromised, I'm immediately replacing all those things.
I urge you to examine the way you use your cellphone, and your dependence on it, before you purchase such a plan. It boils down to your insurance provider and their coverage scope, as well as the fees you would incur in proportion to the value of the features of your specific device. Generally speaking though, a phone purchased after 2005 is a phone that is capable enough to be worth protecting with a cellphone insurance plan.
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No
by Bill Stone
Created on: January 02, 2009
Whether or not you choose to buy phone insurance involves many factors, but all of them involve determining how much you will pay, and what you get for your money. Let's narrow the scope of the discussion slightly to make it more relevant. Let's assume that you pay your bill out of your pocket, not your business or company. So the extra $5 to $10 is coming out of your pocket. We're also assuming as a part of this discussion that you paid about $100 for your handset. You may have paid less, but for argument's sake, we'll simplify the cost and say you paid $100. We'll also assume the monthly fee for your insurance is $4.95 (we'll round it to $5), and the deductible for the replacement phone is $50. Those charges may be different for your carrier; be sure you read through your insurance policy before you join.
If you do lose your phone, you need to pay a deductible (anywhere from $50 - $100) and you will be given a "replacement" phone. "Replacement" phones are not always "factory-refurbished " which means something completely different. Usually, the phone insurance companies will buy used phones and give them out as replacements. In many cases, they are not what you would normally expect from a "factory-refurbished " device; often, they are of far worse quality, but still operable.
To put this discussion into perspective, let me detail for you an example. I sign up with AT&T, and get a Blackberry Curve (new) for $99 after rebates. If I were to buy insurance on the phone, and lose my Curve after one year, I would have paid $60 plus tax for the insurance plan, and a $50 deductible, and I'd have gotten a "replacement" phone, not as good quality even as a factory-refurbished phone. That's $110 plus tax for a replacement phone, not to mention all the paperwork and the waiting I'd have to go through to file the claim (police reports, etc).
Instead, I could take that $110 and go to eBay and buy a "new-in-box", "never opened" AT&T Blackberry Curve using Buy It Now (not waiting for the auction to end) and usually get it within the same timeframe as the insurance phone, perhaps sooner. And the phone I'd get from eBay would be brand new as opposed to refurbished.
My recommendation on insurance: Save your money. You can get better quality phones for the same price from eBay. Don't bother with the insurance. If you got a new phone from insurance, it might be worth it. As it is, the replacement phones are barely worth what you pay for them.
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