A market survey, conducted in the US, by Assurion an Insurance agency for service providers Verizon Wireless, T-Mobile, Sprint and AT&T, revealed that 60 million mobile phones are lost or suffer some damage within a year of purchase. This was the risk faced by one out of every three customers. Read on and learn the best ways of minimizing your risks and maximizing benefits through mobile phone insurance. 

Exactly how much does mobile phone insurance cost? 

Insurance companies usually quote premium between 4 to 6 dollars per month with 50 to 100 dollars non-refundable deductible per claim, depending upon the set. Supposing your cell phone is worth 100 dollars and you are paying insurance at 5 dollars per month with a 50 dollars deductible. If you file a claim in the tenth month, you end up paying 100 (i.e. 50 dollars for insurance premium + 50 dollars for deductible), which exceeds the original value of the cell phone. For expensive sets the premium may go higher to 29 dollars. It makes sense if you are claiming replacement for an advanced PDA phones costing 500 to 600 dollars.  

Is insuring the mobile worth the hassle? 

Losing one’s mobile or damaging it in some way wastes your valuable time and money. Even with insurance, people may end up shelling out more money than the risk, and fill the coffers of the insurance companies. The basic thing is to assess the actual risk of damaging or losing your phone. Are you a perfectionist, keeping your personal items in great condition without fuss; or are you the totally-at-sea-with-gadgets type, breaking, scarring and losing them often, in which case insurance is a good option, as it would cost a lot less than spending on new phones.

Exactly what does mobile phone insurance cover?

The manufacturer’s warranty covers only the defects or malfunctioning in your phone. Mobile Phone Insurance covers water damage, risk of theft or loss, cover for fraudulent calls, international cover, extended warrantee, damage through accidents, and also replaces your phone after levying deductibles.

What are the features that make a great mobile phone insurance policy?

• Company replaces the set within 48 hours of the claim.
• Reimburses cash for the market value of the old phone or new phone and not simply the network replacement charges.
• No payments to service providers- Saving charges from 15 to 25 dollars.
• Covers calls made on your phone after loss - Protecting you from frauds.

Are there special conditions or offers to look out for?

Covering costs up to 1000 dollars for maximum protection against frauds, no claims bonuses like free battery after one year or an upgrade after 2 years, free backups for preserving data and covering International tours for tension free traveling are some of the special conditions which enhance the value of the policy.

And finally a word of caution…

Do remember that the insurance policy is between a third-party insurance company and the cell phone owner. Companies allow you fourteen days to decide. Spending 15 minutes reading the policy document would also be far more rewarding than falling for a sales pitch at the counter!