We all need cell phone insurance. That's the bottom line. But increased cost of insurances and, sometimes, poor customer service have more or less turned some people off.
So you ask, do I really need cell phone insurance? How big of a deal is it if I don't get one?
Cell phone insurance vs. Self-insuring cell phones
Are they even different? Yes, they are. These two are very different by a long shot.
When you buy a new cell phone, you need to make a choice whether to buy cell phone insurance along with it, or just self-insure the thing yourself. These are two very different approaches to replacing your lost or damaged old cell phone.
Through a cell phone insurance company
This is perhaps the most popular way of insuring your cellphone from loss, theft or mechanical breakdown. You pay a set fee every month, and the cell phone insurance company makes sure your old phone is replaced if it is lost, stolen or damaged in a way as covered by the policy. Take note that most cell phone insurance companies charge a non-refundable deductible fee when you file an insurance claim.
Through self-insurance
You start saving up a fixed amount every month. If your cell phone breaks down while the warranty is still effective, good for you – the cell phone provider might replace the unit for free. If the warranty is no longer in effect, you can use this money to either repair it or to buy a new cell phone. Depending on the model unit, you could end up paying less or more with self-insurance. So it's a risk.
People who self-insure are those who has had negative experience dealing with cell phone insurance companies. ither the insurance company didn't fulfill it's end of the bargain, or the customer was disappointed because is expectations was set too high and didn't bother to read the contract before signing it.
It should be noted that not all cell phone insurance companies are scams, as not all insurance claims are truthful. You need to find a good cell phone insurance company that meets your expectations. But if you have tried everything out there and still couldn't come up with anything, maybe it's the time think about self-insuring your cell phone.
