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Whether or not to buy cell phone insurance is a decision that should be thought over before you go into the store to actually purchase your new phone. You should prepare questions for the sales associate to ensure you are properly informed. You might even research other insurance agencies before committing to the phone companies insurance. Insurance for your phone equipment is like any other insurance, it isn't necessary until you need it - then it's wonderful to have.

Most cell phone providers offer insurance with rates around $5 to $7 a month. This coverage usually has a deductible ranging from $50 to $100 depending on the individual phone. If your phone is discounted because you signed a contract, make sure you ask for the cost of the phone without the discount. You should add the total cost of insurance for the length of your contract, and then add the deductible price to that total. If your ending total is more than the cost of your phone, without a contract discount, then look for less expensive insurance. After all you don't ever want to spend more for insurance than the equipment is worth.

Some cell phone equipment comes with a free warranty. You might reason that free warrant replaces insurance. You should make sure to ask for detailed information of coverage before deciding. Most manufacturers don't cover water damage or physical damage to the equipment. If you plan to rely only on the warranty then make sure you understand what voids the warranty before you need to file for a replacement. For instance, if your phone stops receiving text the warranty should cover that, but not if you have a crack on the screen or a dent on the phone. Even if the physical damage is only superficial and couldn't cause the text issue, your warranty might still be void due to physical damage. Also, sometimes the warranty runs out before your contract ends, so you might revisit the insurance idea to keep some coverage for the remainder of your contract.

Also, it's worth your time to ask your auto insurance company if they cover cell phones. Some large insurance agencies do offer cell phone insurance at a less expensive rate than actual phone companies. Most agencies require that you already have insurance with their business. Some expect you to have other recreational items listed with their company, such as boats or motorcycles. It only takes asking to know for sure, and the savings can be substantial. Some of my research found that $20 a year could supply me with great

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