Smart Phone Warranties

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Smartphone Warranties and Protection Plans

Some common reasons that people choose to add a warranty/insurance/protection plan to their smartphone is because replacements can be expensive, a phone case may not cover everything, the need for peace of mind, it may be risky to get repairs from outsiders, and protection plans are more affordable. Cons to adding a warranty/insurance/protection plan to a smartphone include not being able to choose a replacement, a limited number of claims being allowed, and a high deductible amount being needed.

common reasons people choose to add a warranty/insurance/protection plan to their smartphone


  • People choose to add a warranty/insurance/protection plan to their smartphone because replacements can be expensive. This is especially true when one is not subscribing to multi-year phone contracts. According to Asurion, the average cost of a smartphone that does not come with a contract is $545. It can be expensive to replace a lost or damaged phone that costs that much.
  • In addition, the average deductible and insurance premiums may be less compared to fully replacing an expensive non contract smartphone.


  • People choose to add a warranty/insurance/protection plan to their smartphone because even though a good phone case may protect the phone from damage, such as when it falls on hard surfaces, it cannot cover things like theft, water damage and loss. In addition, while a good phone case might protect a smartphone, it might not prevent complete damage.
  • According to Asurion, around 80 million phones are stolen, get lost, or are damaged annually, and insurance and protection plans are needed to help solve the problem.


  • Some people choose to add a warranty/insurance/protection plan to their smartphone for peace of mind. Such people do not want to take chances or risk not having smartphone insurance or protection, just in case something happens to their phone.
  • Some people are happy to pay annual premiums to cover their smartphones even if they never lose or damage their phone. Just like people pay for car insurance, such customers prefer to be safe and have the peace of mind, than be sorry.


  • One reason why people choose to add an extended manufacturer warranty protection plan to their smartphone is because sometimes when a smartphone is damaged, it is risky to have it repaired by an outside person or company that is not the manufacturer.
  • This is because companies that manufacture smartphones know the phones very well and have people with expertise and experience in successfully repairing their damaged phones. Those who choose extended manufacturer warranty plans are usually more interested in covering mechanical issues and software defects on their phones.

plans are More Affordable

  • People choose to add a warranty/insurance/protection plan to their smartphone because these plans are more affordable to many people. One may be required to pay between $5 to $10 per month, which many people find affordable.
  • Those who can afford the monthly premiums find it better to add a protection plan than fully replace their smartphones, even if a bit extra may be required in deductibles to fix the problem.

cons to adding a warranty/insurance/protection plan to a smartphone


  • One disadvantage of adding a warranty/insurance/protection plan to a smartphone is that one has little freedom or control on the kind of replacement they will receive. Once one makes a claim, the company may replace the smartphone with another one that is of a different make or color. In addition, the replaced smartphone may be a refurbished one and not new.
  • If one is paying hundreds of dollars into their insurance or protection plan, getting a refurbished smartphone as a replacement may not be value for money.

limited number of claims

  • Some warranty/insurance/protection plans limit the number of claims that one can make during a policy term. Some providers limit the number of claims to two in a 2-year policy, for example. This means that if one loses or breaks their smartphone more than twice, they will be forced to pay full price for repairs or a new phone.
  • In addition, for some insurance or protection plans, making a claim may lead to one being dropped from that plan.

a HIGH DEDUCTIBLE amount may be needed

  • Smartphone insurance and protection plans work in the same way as other insurance/protection plans in that one may be required to pay a deductible amount to get a replacement or their phone repaired.
  • Some deductibles run into hundreds of dollars and if the smartphone requires a small repair, the deductible charged may be a big portion of the cost to repair the phone or buy a new one, and this may not give the customer value for money.


  • "In fact, when your insurance company replaces your broken phone with a working one, the replacement is often refurbished. The phones that insurance companies send are often phones that were sold used or were broken and then repaired. For your hundreds of dollars of premium and deductible, wouldn't you rather have a truly new phone?"
  • "This isn't true of all insurance plans, but some of them limit the number of claims you can make during your one- or two-year policy term. For instance, some iPhone insurance policies limit you to two claims in a two-year policy. Have the bad luck to have a phone stolen or break a third time in two years? Your insurance won't help you and you'll be stuck paying full price for a repair or a new phone. "
  • "Just like with other types of insurance, when you make a claim, you also pay a deductible. This means you'll either have to pay this fee to get a repair or a replacement phone, or that money will be deducted from a cash settlement paid by the insurance company. Deductibles run between $25 and $300 per claim."
  • "While investing in a protective phone case is a smart call, since it’s all that comes between your smartphone and an unforgiving sidewalk, it doesn’t prevent your smartphone from getting lost, stolen, or suffering irreparable water damage."
  • "For each claim you file, you’ll pay a deductible that could run anywhere from $29 to $225. Most insurance companies limit the number of claims you can file to two or three a year. And your insurer might send you a refurbished phone rather than a new model if a replacement phone is what you need."
  • "It’s true that most phones today have manufacturer warranties. A warranty usually covers mechanical issues and software defects."
  • "We know there are countless phone case options available today. And many brands market themselves as offering products that offer great protection. And while a good case may help protect your phone, it can’t completely prevent damage."
  • "Maybe you’d pay $5-10 per month and then once your phone has suffered an unexpected injury then you could claim that insurance and get it fixed. The insurance issuer could then assess the extent of damage on your smartphone and depending on how serious it is, you might have to pay a little extra to get it fixed otherwise they’d take care of everything."