Insurance for Mobile Devices: Needed or Waste of Money?
Whenever you purchase a new mobile device, one of the questions asked is whether you want insurance. The insurance means you’ll probably have to pay a monthly premium. Most of the time, that monthly premium isn’t much – maybe $10. This can seem enticing because most people can afford that a month and the idea of getting a repair paid for in case something happens to your precious iPhone, iPad, smartphone or tablet is great. Is it really worth it though? Are you really saving money? Unfortunately, the answers are no.
Why iPhone Repair Insurance Is a Waste of Money
While you may pay $10 a month, when something does happen to your phone, you’re lucky if it’s covered under your policy. Most insurance plans for mobile devices do not cover screen cracks, and since that is the most popular repair, the insurance doesn’t do much good for them.
The other disadvantage that many people do not realize until it’s too late is that there’s usually a deductible. You may have to pay $100 or $200 dollars before you can have your device repaired or replacement. By the time you count the number of times you’ve paid $10 per month and the deductible, you probably paid just as much as you would a new device.
The other thing that people should consider is that repairs are not usually that expensive. By the time you spend the $10 a month and the deductible, you’ve paid for the repair you need and in many instances, double. Wouldn’t it just make sense to pay for a repair IF you need it, instead of paying for insurance that you may never use?
What if you don’t ever break your phone or tablet? All of that money you spent on insurance is wasted. That’s how insurance works. For some things, like your home, it’s worth it. The damage that a home can incur in a storm could be financial devastating, but the damage to a phone is not as bad.
Make a Money Wise Decision
Think carefully before you decide to get insurance for your iPhone, iPad, tablet or smartphone. It may not be worth the investment.