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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