Is cell phone insurance really worth it? - AmericaNowNews.com

Consumer

Is cell phone insurance really worth it?

  • ConsumerIs cell phone insurance really worth it?More>>

  • Should you buy travel insurance?

    Should you buy travel insurance?

    If you're planning on a vacation so you can get out of town for a little bit, you may have thought about travel insurance. So here's a question -- how do you know if you need it?
    If you're planning on a vacation so you can get out of town for a little bit, you may have thought about travel insurance. So here's a question -- how do you know if you need it?
  • Wedding insurance covers losses

    Wedding insurance covers losses

    The average cost of a wedding is $27,000 - a high price to pay when so many things can go wrong. Wedding insurance can help protect you from losing money on your matrimony.
    The average cost of a wedding is $27,000 - a high price to pay when so many things can go wrong. Wedding insurance can help protect you from losing money on your matrimony.
  • Dealing with disaster: Understand your insurance

    Dealing with disaster: Understand your insurance

    A catastrophe is defined by the insurance industry as "a natural disaster that causes $25 million in damages." But the physical and emotional toll to individual homeowners can't be measured. From tornadoes
    You might think that your homeowner's insurance policy will protect you – and it should – but a recent study shows that while 96 percent of homeowner's have insurance, nearly 64 percent of homes don't have adequate coverage.

When you invest a good deal of money in a new smartphone, an insurance plan seems like a no-brainer.

But you should make sure you read the stipulations of the plan. Some cost as little as $5.99 a month, but it's how much you'll pay in a deductible if it's lost or needs to be repaired that you should really examine.

One of the top problems with cell phones, like iPhones, is the delicate screens.  One drop with an unprotected screen and you could be staring at a shattered display and a huge deductible.  That's why more and more people are opting out of insurance and instead paying for repairs on an 'as needed' basis.

Chuck Morrison works at SmartPhone MD, and their business is booming.  Since the company started five years ago, they've grown and opened several new stores.  Inside SmartPhone MD you'll see their ‘wall of broken screens'.  They repair broken screens and much more. The average cost of repairs, according to Morrison, is about $100.

Rebecca Green was enjoying her day when her new phone crashed to the ground, "I was at the post office and I was fumbling with a package and it just dropped and shattered the screen."   

The phone was a gift from her grandparents and to fix it she had to send it off and go without a phone for three days so it could be repaired under her insurance plan.  Learning that the deductible was probably more money than just a trip to a repair shop, Rebecca says she'd reconsider insurance on her next contract.

When Ahna Brown's screen shattered, she didn't have insurance. "I took it to one of the places in the mall and they just did a quick fix on the screen, it was about a hundred bucks."

It's stories like Ahna's that have helped phone repair companies grow.  At SmartPhone MD, they've repaired about 25,000 phones since opening.

There are many reasons why insurance is a good thing for some.  If you have teens who lose a phone, the cost of your deductible weighed against the cost of replacing the phone might make the monthly fees worth it.  But think long and hard and crunch your numbers before you sign on the dotted line.

Copyright 2013 America Now. All rights reserved. 

Powered by WorldNow