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Mobile Phone Insurance: Is it Worth the Cost?

Today's mobile phones range from inexpensive, disposable phones to high-priced Smartphones and iPhones. No matter what kind of cell phone you have, losing your cell phone can cost you—whether it's in minutes or inconvenience. A relatively new product, mobile phone insurance offers to offset the cost of cell phone loss, theft, damage, and sometimes mechanical failure.

What is it?

Cell phone insurance operates much like other types of cover. For a monthly fee, you have coverage should your cell phone become inoperable. This means that most companies offer a reward amount for their customers should their cell phones be lost, stolen, or damaged. The amount of the reward depends on both the insurance company and the type of coverage selected. Some companies allow customers to choose from plans with different coverage amounts. For instance, some insurance companies offer plans for smartphones and iPhone insurance that cost more, but offer higher rewards. Because smartphones and iPhones tend to cost more to repair or replace, this arrangement is logical.
Another important component of mobile phone insurance is the fact that it covers the cost of unauthorized calls, purchases, and plan cancellation, in some cases. If your phone is lost or stolen, an unauthorized user can accrue thousands of dollars of charges in just a few hours. If you have cell phone cover, you are generally protected from having to cover these costs.

What Does It Cost?

Cell phone protection typically costs less than $20 per month, depending on the plan and the types of coverage. Some plans allow you to add additional coverage, such accessory insurance and extended warranties. These options will figure into the cost of your plan and will generally mean you pay a higher monthly rate.

Do I Need It?

The answer depends on how often you use your phone, what kind of phone you have, and whether or not you plan on losing your phone. Of course, no one plans on losing his or her phone. Even if you have a phone that is worth very little, if can still end up costing you thousands if it is stolen. For this reason, anyone who has a cell phone is a candidate for cell phone insurance and will be able to benefit from cell phone cover if his or her phone is stolen.

Where Can I Get It?

Mobile phone protection is sold virtually throughout Australia. Many companies allow you to purchase and activate your insurance online. This makes the insurance process convenient, and it also allows you to manage your account and payments online. One company also offers you the option to purchase insurance through terminals throughout the region. This means that you can buy and activate your mobile policy as soon as you purchase your phone.
There are many types of mobile phones and many types of plans. Determining whether or not mobile phone insurance is for you takes some personal decision-making. You have to determine whether or not you're willing to risk the costs associated with cell phone loss—including buying a new phone, canceling a policy, and paying for unauthorized charges. Once you determine to buy a protection plan for your iPhone, you also have to decide which plan is right for you. To make this decision, you need to think about how you use your cell phone and what features on your cell phone are important to you. For instance, you probably won't buy smartphone protection if you have a flip phone. And if you don't have cell phone accessories, you don't need a policy designed to cover them. But whatever you choose, buying a policy can give you one thing for certain—peace of mind.

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