What Does Phone Insurance Cover?

Cell phone insurance — also known as a phone protection plan — covers a host of issues a manufacturer warranty doesn’t. You can purchase the optional coverage through your mobile service provider, a third-party insurance company, or another provider.

Exact coverages and coverage limits vary by provider or insurance company, but most plans provide a standard set of protections and exclusions.

Here’s what you should know about phone insurance, including what it covers and how it works.

What does phone insurance cover?

Phone insurance is a peace-of-mind coverage that protects you against losses from common mishaps and malfunctions affecting your cell phone. The protection can save you a significant amount of money on phone repairs. For example, Progressive offers coverage beginning at $8 per month, but the average repair claim for a phone is $330.^[1]

Phone protection coverage typically includes the following:

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  Theft and vandalism

  If a thief steals your phone, or someone intentionally damages it, phone insurance will usually repair or replace it with a phone of equal (depreciated) value.

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  Battery replacement

  Some plans, including coverage from Asurion through UScellular, replace bad batteries.

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  Damage from power surges, fire, or flood

  If a fire or storm — including natural disasters like hurricanes and tornadoes — damages your phone, phone insurance can pay to repair or replace it.

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  Accidental damage from liquids

  Spilling liquid on your phone, or dropping your phone into liquid, often voids the warranty. But phone insurance covers the cost of a repair or replacement due to liquid damage.

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  Cracked screens

  Dropping a phone can often cause the screen to crack. Insurance covers it, and some policies cover unlimited repairs.

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  Post-warranty malfunction

  You usually have to pay out of pocket for phone repairs after the warranty expires. Phone insurance covers those repairs.

Depending on where you purchase your phone protection plan and where you live, you might have to pay a deductible for some services.

Does phone insurance cover a lost phone?

It depends. Some phone insurance plans do cover lost phones — that is, phones that are missing but not stolen. Asurion policies through Verizon, for example, cover loss as long as it isn’t intentional.^[2] Progressive, on the other hand, specifically excludes coverage for lost phones.

If the device protection plan you’re considering uses the phrase “involuntary and accidental parting” to describe the kind of loss it covers, your protection may only apply to situations where you know where your phone is but you can’t reasonably retrieve it.^[3]

This situation may occur if you leave your phone behind while traveling and only realize it after you’ve arrived at the airport to fly home. Protection plans from credit card companies often have this stipulation.

What doesn’t phone insurance cover?

Cell phone insurance, like homeowners, renters, and auto insurance, has limits and exclusions for certain types of losses. Your phone protection plan may exclude the following:

• Viruses: Phone viruses are rare, but if one infects your phone, you’ll typically have to pay out of pocket to remove it.

• Normal wear and tear: Insurance and protection plans usually cover mechanical failures that occur after the manufacturer’s warranty ends. But most — including Progressive, T-Mobile, and Verizon — exclude coverage for normal wear and tear.

• Cosmetic defects: Coverage usually excludes surface damages, like scratches and dents, that don’t affect how your phone operates.

• Neglect or failure to limit damage: Insurance companies expect you to take reasonable steps to protect your phone and to limit damage in the event of a mishap. So, while your plan would likely cover damage from dropping your phone into liquid, leaving the phone in the liquid would give the insurer a reason to deny your claim.

Phone insurance vs. manufacturer warranty

A manufacturer warranty covers manufacturing defects that cause your phone to malfunction within a certain period after you purchase it. For example, Apple offers a one-year limited warranty on iPhones.

If the iPhone malfunctions in the first year because of defective materials or workmanship, Apple will repair or replace it. But the warranty won’t cover things like accidental damage, liquid damage, or a lost or stolen phone.^[4]

Phone insurance covers mechanical and electrical defects after the warranty has expired, and it also covers things the warranty doesn’t. For example, phone insurance and protection plans cover accidental damage and battery replacement due to the battery’s naturally diminishing ability to hold a charge. This coverage can save you money by preventing you from having to replace your phone prematurely.

Where to buy phone insurance

Phone insurance and phone protection plans are available from several different sources.

• Wireless service provider: Wireless service providers like Verizon, AT&T, T-Mobile, and Comcast offer device insurance and protection plans. The issuing insurance company is usually a third party, such as Asurion or Assurant.

• Phone manufacturers: Phone manufacturers like Samsung and Apple have care plans that cover accidental damage, screen repairs, loss, theft, and battery services.

• Traditional insurance companies: The same companies you use for home and auto insurance sometimes offer phone insurance as well, although a third party may issue the coverage.

• Retailers: When you purchase a phone through Walmart, BestBuy, or other retailers, you might have the option to purchase a protection plan to extend your warranty and cover accidental damage, loss, theft, and other mishaps.

How to file a phone insurance claim

Most companies have straightforward claim processes. Here are the general steps you’ll follow to file a claim:

1. Gather information about your phone. You’ll need the make and model of your phone and your wireless service provider.

2. Document the incident. The insurance company will need details about the details of your damage or loss, including what, when, where, and how it happened.

3. Decide on payment method to pay the deductible, if required. Phone replacements and many repairs require a deductible.

4. Start the claim. Go to your plan provider’s website to start the claim. You should see a “Claim” button or tab on the website.

5. Complete the form. The insurance company will ask for your contact information, phone number, and incident information.

6. Pay the deductible. Enter your payment information if prompted to do so.

7. Submit the claim. You should receive an acknowledgement that the insurance company has received the claim, along with next steps, such as how to track the claim.

Is phone insurance worth it?

Phone insurance might be worth it if you’re about to purchase or just recently purchased a pricey new phone and the manufacturer warranty doesn’t provide all the protection you need. You may also want to consider a phone protection plan if you’re clumsy with your phone, frequently drop it, carry it in your pocket, and use it in locations where it’s vulnerable to damage or theft.

Phone insurance may not make sense for you if you’re careful with your phone, it’s still under warranty, or it’s an older phone. Plans start at about $5 for bare-bones coverage, and many charge over $100 per year. You could end up paying more for coverage than you’d pay out of pocket to repair or replace the lost or damaged device with a new phone of equal value, accounting for depreciation.

What does phone insurance cover FAQs