Phone Insurance: What to Know About Mobile Device Coverage

If you have a cellphone, you may want phone insurance, which can pay to repair or replace your phone if you damage it. And considering many phones cost upward of $1,000, it’s worth considering phone protection.

Phone insurance covers most accidental damage and theft and is relatively affordable. You can usually purchase plans for less than $10 per month. But because each plan differs depending on your provider, it’s important to read the fine print.

Here’s what you need to know about phone insurance, including what it covers, how much it costs, how claims work, and more.

What is phone insurance?

Phone insurance — also known as a phone protection plan — is a type of insurance that pays to repair or replace your mobile device in cases of accidental damage and theft. The exact coverages can vary from plan to plan.^[1]

Phone insurance often covers damage that a warranty doesn’t, including accidents. It can also continue to protect your phone after your warranty has ended.

Phone insurance is available through many different sources, including phone manufacturers (AppleCare, for example), phone plan carriers, and insurance companies. The coverage your plan offers and the average cost may vary depending on the provider you choose.

How phone insurance works

Phone insurance works similarly to most other types of insurance. You pay a monthly premium, and in exchange, your insurance company offers certain coverage.

Phone insurance covers a variety of problems, including cracked screens, liquid damage, theft, loss, and more. If your phone sustains damage that your plan covers, you can file a claim directly with your insurer, and it’ll pay to either repair or replace your phone.

Like other types of insurance, phone insurance may require a deductible or service fee, which is your out-of-pocket share of the cost. Then, your insurance company should cover the rest, subject to any policy limits in place.

Let’s say you drop your phone, and the screen breaks. It costs $250 to fix, and your plan has a $75 deductible. You’ll pay the first $75 for the repairs, and your insurer will pay the other $175.

The repair or replacement process may vary by provider. For example, if you’re using AppleCare to cover your repairs, you’ll have to get the repairs directly through Apple. Other providers may have their own restrictions in place. If the damage is severe enough that you’ll need a new phone, your insurer may provide you with a refurbished one rather than a brand-new one.^[2]

What does mobile device insurance cover?

Your phone insurance coverage varies depending on your chosen company. Some insurance plans have an explicit list of damages they cover, while others simply cover all accidental damage and list anything they don’t cover.

These are some damages your plan may cover:^[3]

• Battery failure

• Broken or cracked screen

• Damage from spills or drops

• Liquid damage

• Mechanical or electrical failures

• Natural disasters

• Power surges

• Theft or vandalism

What won’t phone insurance cover?

In addition to listing what the plan covers, most insurers have a list of exclusions they explicitly won’t cover. This list will vary from one company to the next.

Here are some examples of common exclusions:

• Cosmetic damage

• Criminal acts

• Intentional tampering or modifications

• Neglect or failure to prevent damage

• Normal wear and tear

• Software viruses or defects

Generally speaking, your policy won’t cover any intentional acts. For example, if you intentionally damage or lose your phone in the hopes of getting a new one and your insurer suspects this is the case, it may not cover the replacement.

Cost of phone insurance

The cost of phone insurance typically ranges from around $8 to $14 per month, though premiums could be higher or lower with certain insurers. The average cost is around $10 per month across insurance companies, phone manufacturers, and phone plan providers.

The cost of phone insurance may vary depending on several different factors, including:

• Phone(s) covered

• Provider

• Coverage amount

• Deductible

• Plan term

As a general rule, the more robust the plan in terms of coverage limits and types, the more you’ll pay for coverage. The table below breaks down the average cost of some of the top providers.

Provider	Monthly Cost
Verizon	$8
Progressive	$8
Allstate	$9
USAA	$9
GEICO	$10
Apple	$12
AT&T	$14

Pros and cons of mobile device insurance

Every financial product, including insurance, has some advantages and disadvantages. Before you buy a policy, it’s important to weigh all the factors to determine if it’s the right choice for you. Here are some pros and cons of phone insurance worth considering.

How to buy phone insurance

If you’re in the market for phone insurance, you have a few different options for how to purchase it. You can typically purchase a plan from:

• 

  Phone manufacturers

  Phone manufacturers, like Apple and Samsung, offer their own protection plans.

• 

  Phone plan providers

  Plan providers, including Verizon and T-Mobile, offer phone protection plans for phones in their networks.

• 

  Insurance companies

  Traditional insurance companies, like Progressive, GEICO, and Allstate, offer stand-alone protection plans.

• 

  Third-party providers

  Some third-party providers, like Asurion, offer stand-alone phone protection plans, though they may partner with a plan provider or insurance company.

When you’re ready to purchase a plan, start by shopping around and comparing your options. For example, if you have an iPhone on a plan through Verizon, your options would include AppleCare, a Verizon protection plan, and a stand-alone plan offered by a third party.

Some things to consider when comparing plan options include:

• Monthly premium

• Policy term

• Deductible

• Included and excluded coverages

• Coverage limit

• Claims process

• Repair locations/options

Before you buy a policy, make sure to check whether you already have coverage elsewhere. Some homeowners insurance policies cover cellphones or offer phone protection as an endorsement. Additionally, some credit cards offer phone protection. Just make sure to read the coverage restrictions to ensure the plan provides everything you need.

Phone insurance FAQs