PFT #81 - Personal Finance Tip of the Week - Cell Phone Insurance

It seems that everyone has a cell phone and back in the day that was the sentiment for owning a television.The difference is that people’s devices are attached to the palm of their hands.

The interesting thing is that a cell phone can cost more than most T.V. 's but we tend to test their durability. It is plausible to say that people drop their phones at least twice a day.

Moreover, we’ve all heard or had stories of losing them and dropping them into a lake.
I actually dropped one into a toilet in Mexico - so that was an interesting experience and I pissed it away for a lack of a better phrase. So this leads us to cell phone insurance and like all protection plans, is it worth the cost?

The answer is that it depends. From research, it typically costs $8 -$17 when using your cell phone carrier. You can also opt for third-party services from companies such as AKKO and SquareTrade which tend to be less expensive.

Okay there’s no shocker here in that with just about each type of insurance, it comes with fine print namely in deductibles and the range of coverage. So understand the details before you commit.

A good exercise is to determine the monthly cost insurance with a potential deductible over the cost of fixing or replacing your device over the duration of owning the phone.

Typically, kids tend to damage or lose phones more than adults but in either case, many of the major phone makers in recent years design them to be waterproof. Either way, if you get a solid protective case and / or with screen protector you should be in good shape and may opt out of insurance.


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Episode Transcript

(00:04):
Hello everyone, I am David andyou were listening to the Personal Finance Tip
of the Week, and this week'stopic is about cell phone insurance. It
seems that everyone has a cell phone, and back in the day that was
a sentiment for owning a television.The difference now is that people's devices are

(00:27):
attached to the palm of their hands. The interesting thing is that cell phones
can cost more than most TVs,but we tend to test their durability.
It is plausible to say that peopledrop their phones at least twice a day.
Moreover, we've all heard stories ofpeople losing them and dropping them to
things like the Lake. I actuallydropped a phone in a toilet while in

(00:50):
Mexico, so to make a pun, I pissed it away. So let's
get to it. The answer forthat is it just depends from my research.
It typically costs eight to seventeen dollarswhen using your cell phone carrier.
You can also opt for third partyservices from companies such as Akko and Square
Trade, which tend to be lessexpensive. Okay, so there's no shoka

(01:14):
here in that. With just aboutevery type of insurance it comes with by
print, namely in deductibles and therange of coverage, so understand the details
before you commit. A good ruleof thumb is to determine the monthly cost
of insurance with a potential deductible overthe cost of fixing or replacing your device
over the duration of owning the phone. Typically, kids tend to damage or

(01:38):
lose phones more than adults. However, in either case, many of the
major phone carriers in recent years designthem to be waterproof. Either way,
if you get a solid protective caseand or with a screen protector, you
should be in good shape and mayopt out of insurance. So that will
do it for the personal finance tipof the week Until next time, I am David