3 of 7

No

Write now Article Tools

There may be some people who could benefit from cell phone insurance however, for the average person, it is not going to be worth it. The main reason for saying this is because the insurance company will expect the customer to pay an excess and, often, this might work out to cost more than simply buying a new phone. Then there is the matter of whether the insurance company will even pay out at all. It is necessary to be extremely cautious with such things as no one wants to pay a monthly insurance premium only to find that it is not possible to claim on it in the end.

Then, of course, there is the premium. The rates can seem really low but it may not truly be worth paying. Perhaps it would be the case for someone who needs to claim early enough in the policy or someone who has bought an expensive cell phone, this might well work out to be the best option. Even then, however, if the policy is held for so long that the premiums end up altogether costing more than the cell phone, it is still not worth it. I am not going to say that cell phone insurance is not worthwhile for everybody only that it can easily work out more expensive than buying a new cell phone.

For many people, if they can afford to pay the premium for insurance, it might be wiser to invest the same amount into a savings account which would accrue interest and know that it's there rather than paying it out to an insurance company. For example, if the insurance premium is $10 per month with an excess of $50 on a claim on a policy which has been held for just 12 months, that's $170 paid out already. That's all very well if the cell phone cost more than that in the first place. However, saving the $10 per month means that there is $120 available without having to worry about any catches and clauses in an insurance policy or wondering whether the excess is affordable. Particularly if the policy holder is careful and unlikely to need to make a claim on the policy, even a more expensive cell phone may not be worth insuring.

Also, if it turns out that, upon a claim on the insurance policy, the policy holder does not have enough money to pay the excess then this means that the policy holder has lost out completely by having to pay a monthly premium for a policy that can not be used.

So, in conclusion, there is no way of really knowing whether a policy will be worthwhile until it has been necessary to act upon it however, in my opinion at least, it would make more sense to keep hold of the money, regardless of the original cost of the cell phone, and save it as, in reality, a cell phone insurance policy could cost more than the cell phone itself but a good savings account will guarantee that all the money saved will be there when it is needed.

Learn more about this author, Sapphire Magpie Ravenclaw.
Click here to send this author comments or questions.

Add your voice

Know something about Is Cell Phone Insurance Worthwhile??
We want to hear your view. Write now!