The question of whether or not to get insurance on your cell phones depends on a number of factors. One of the most important, of course, is the actual amount that it would cost to replace a phone. A new smartphone such as the iPhone or BlackBerry, for example, would cost several hundred dollars to replace. A few dollars a month in cell phone insurance makes sense, in that type of case.
However, depending on your carrier and the type of phone you have, insurance may not be an option, or it may not seem worth the money. If that’s the case, here are some alternatives you can consider:
- Go without. If you have a cell phone contract and are somewhere near time to upgrade, you might be better off waiting it out and just getting a new phone when you have the opportunity to upgrade. When you get the opportunity to renew your contract, you can save money on a new device. Typically, you can save half the cost of the phone or even more by upgrading.
- Self-insure. You can set aside a few dollars a month into an envelope or a savings account. Statistically speaking, you’re not likely to break or lose more than 1 in 3 phones you own, so setting aside $5 should make it so you’ve always got a little extra cash to buy a phone with in an emergency.
- Look at other insurance coverage. In some cases, your other insurance policies may include your cell phone. For example, your homeowners insurance policy may cover up to a certain amount of electronics devices. The obvious issue here will be the deductible, of course, as it’s likely that the deductible on your homeowner’s policy will be higher than the cost of a new cell phone, but it’s still worth a look.
- Be willing to deal with outdated tech. If your phone dies, you may be able to purchase a used phone or a basic phone to continue using on your plan. It means fewer features, and once you’re eligible for an upgrade on your contract you can get back into the kind of phone you want.
