Is Smartphone Insurance Smart?

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Americans are committed to keeping abreast of the latest technological developments in the consumer electronics industry. But these devices don’t come cheap, so it’s no wonder then that smartphone insurance is now becoming a hot topic of conversation.

Better Safe Than Sorry?

There are plenty of things to consider when selecting insurance for your new smartphone.  For example, is your new phone covered under any other insurance plans, such as plans available through the credit card used to purchase it or a homeowner’s policy? Especially in the case of stolen goods, these protections are likely to be already available to you.

And just as there are plenty of options that already might be available to you to consider, there are also plenty of pros and cons to buying smartphone insurance should you actually need it. Consider what your smartphone might actually be worth, for one. If you are on a contract, the cost of your phone may have been subsidized by the carrier. You might have only paid $200, but your phone might actually be worth closer to $1000—and you’re required to pay for service on it for a full two years. This alone might make smartphone insurance a viable option to consider.

But, then again, many of the issues you may face with a phone are likely covered under a manufacturer’s warranty. If there is a defect with your phone, you are likely to encounter it sooner rather than later, when the warranty is still in effect. And if your phone has a case, it is better protected from drops and dings, which make up a large percentage of reasons for the need for a new phone. Spend some cash on a sturdy case, and you just might not need insurance.

A Difficult Decision

Thinking about the pros and cons of smartphone insurance is enough to give anyone a headache. In addition to considering everything that might happen to your phone, it is also important to think of the effect that insurance will have on your monthly budget. Though $10 a month might not seem like that large of an investment, consider the extended cost of that warranty over the length of two years—not to mention the deductible that is likely to come with an insurance policy. Say, for example, that the final month of your insurance policy sees a broken screen. It’s possible that to get a refurbished phone at the end of your warranty, you will have paid $439 and still not have the latest and greatest phone. In fact, factoring in insurance, a new phone might have cost you less had you not elected to get insurance.

Recommerce Gives You More Options

The biggest reason of all not to buy smartphone insurance? The emergence of more and more recommerce options.  As many people are always on the lookout for older (and cheaper) smartphone models, you may want to ask yourself, “Why insure my smartphone when I could trade it in, get some cash, and buy a new one?”

Everyone wins with an innovative buyback program. If you’re a business interested in learning more about this revolutionary new way of generating profits, contact us today!

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Justin Finkelstein

Co-Founder & CTO at Sourcely; server swiss army knife; flavor architect; the wildcard.