Should You “Insure” Your Phone?

Insurance Tips

With the recent release of the new iPhone XS and the iPhone XS Max, everyone is eagerly going out to buy one. When buying a new phone, especially an iPhone, many people go back and forth on whether or not to get the warranty. AppleCare+, for the new iPhones, costs an extra $249. Some people argue that you should invest in the warranty and others argue that it is not worth it. In this blog post, we will look at both sides, so you can make an educated decision of whether or not “insuring” your phone through an extended warranty, like AppleCare+, is the right call.

Reasons Why You Should Get an Extended Warranty
1. Accidental Damage Coverage

AppleCare+ for iPhones or other extended warranty plans for other phones can be a good purchase if it covers accidental damages, such as a cracked screen or a dropped phone. The warranty would most often fix the cracked screen and/or replace the broken phone. The warranty would then spare you having to shell out another $1000+ dollars to replace the phone yourself.
2. Small Additional Investment

If you compare the phone price to the extended warranty, the extended warranty is cheap for the price you are paying for the phone. An extra couple of hundred dollars is worth the investment for a phone that is about 10 times the cost of the warranty. Depending on how you look at it, this could be a drawback or a benefit to the warranty. You may have the perspective that you don’t want to pay any more money, since you already just spent a large amount of money buying the phone. Or, you may think it’s only an extra $250, so why not get it. So, this point can be argued for either side.
Reasons Why You Shouldn’t Get an Extended Warranty
1. Phone Case & Screen Protector

Buying a case and a screen protector for your new phone is a cheaper alternative to buying an extended warranty. Many of the higher quality cases even include a screen protector, such as an Otterbox case. Good quality cases that will do a good job of protecting your phone from drops and scratches can range anywhere from $40-$100. The more expensive phone cases usually go through rigorous testing to make sure it will protect your phone at all costs (i.e. a drop test). Also, if the case does not come with a screen protector, you can get one on Amazon for $5-$10. So, buying a case and a screen protector for your phone may save you some money while still giving your phone added protection.
2. Self-Awareness

If you are not prone to dropping or scratching your phone, then you may not need an extended warranty. If you know yourself and you don’t have a track record of breaking your cell phones, then why get a warranty? Usually, a broken phone is due to human error, so if you have always kept your previous phones in good condition than an extended warranty may not be needed. Most often than not, cell phones last a number of years before they break, if they ever do.
3. Limited Extended Warranty

When you buy any phone, it usually comes with a limited manufacturer’s warranty. This covers the phone anywhere from a couple of months to one year. This limited warranty would cover any hardware malfunctions or manufacturing defects of the phone within the time period specified by the warranty. As a result, many people find that this limited warranty is enough for them and they don’t need to purchase any other “insurance” for their phone.

In the end, the choice is up to you whether or not you want to “insure” your phone through an extended warranty. There are valid points for both sides, so it all comes down to your own personal preference. So, if you are someone who recently purchased a new phone, whether it was the new iPhone or not, I hope this blog post will help you make a decision.

Also, if you are in the need of some real insurance for your car, home, business, travel plans, and/or life, you can call us at 905-886-7277 to speak with one of our licensed brokers.

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By Laura Parkes