The Best Ways to Utilize Cellphone Insurance and Warranties

In this article, you will get a complete guide on the best ways to utilize the cellphone insurance and warranties. Learn all about mobile phone insurance policies and its loopholes.

A cell phone can be an expensive investment whether you purchase it online or offline or locking yourself in a monthly agreement. Value and the personal information it contains, the regularity with which you are accustomed to it and how fragile it can be – are all those things that are stressful. These are not phones which can fall off a two-story building and still survive; they cannot stand a shower and let Lord help you if your latest hi-tech gadget is found in the hands of a toddler.

However, it depends on how you are buying your phone and if you are through major providers, multiple options for protecting your phone and wallet arise up in the case of a misfortune. Manufacturers provide a free of charge warranty (and additional purchasable warranty to extend them), and the big carriers offer insurance either as an add-on to your monthly cost when signing up or it could be bought separately if you think you might need it at a later stage.

cellphone insurance warranties

Cellphone Insurance

Insurances are for protecting against the things that a manufacturer’s warranty normally doesn’t. While if there is a mechanical breakdown, the normal warranty can take care of that; but it will be of no use for us if the phone gets accidentally damaged. The same applies if you lose your phone or it gets stolen; you would be on your own. Insurance is for the peace of mind, an optional purchase against the definitely possible mishaps.

Cellphone Insurances usually cover:

  • Accidental damage including drops, cracks, liquid spillage and liquid submersion.
  • Mechanical and electronic failures- if the manufacturer’s warranty has expired then the failure would be covered under this warranty.
  • Loss or theft of the smartphone.

If you have decided that cell phone insurance is worth an investment, then you have two options at your disposal- you can take out a policy through your cell phone carrier when you buy a phone commonly done within a month of purchase), or via an independent company unrelated to your cell network.

All of the Big 4 carriers – Sprint, AT&T, Verizon Wireless and T-Mobile offer essentially the same insurance under various brand names; through the insurance company named Asurion. Roughly speaking, 20% of the cell phone user insurance market is under their share through the policies they administer for their various carriers.

Verizon Wireless Total Equipment Coverage

  • For cell phones- $9 per month and $7 per month for tablets.
  • Provides comprehensive coverage for loss, theft, damage (including damages incurred by liquid) and mechanical or electrical issues after the manufacturer’s warranty has expired.
  • Non-refundable deductible is up to $199 per approved claim for phones
  • Two replacement phones are allowed in a 12 month period, with an equipment maximum of $1500 per claim.

AT&T Mobile Insurance

  • $6.99 per month.
  • It provides coverage for theft, loss, accidental damage and malfunctions happening out of warranty period.
  • The phone, standard battery, standard battery charger and SIM card are covered by the policy.
  • A non-refundable deductible of up to $199 applies, depending on the device.
  • Two claims allowed within any 12 month period, with a maximum device value of $1500 per claim.

Sprint Total Equipment Protection

  • $9 per month for mid-range devices and $11 per month for high-end devices.
  • Provides coverage for loss, theft or damage (including damages caused by fluids).
  • Per claim a deductible of $200 will be charged depending on the device insured.
  • A maximum of three replacements or repairs can be granted within any 12 month period, with a restriction of $1500 per claim.

T-Mobile Premium Handset Protection

  • $8 per month for smartphones.
  • In the event of loss, theft and accidental damage as well as mechanical breakdown, the policy would be exercised.
  • A non-refundable deductible will be charged per claim, of up to $175 for high-end smartphones.
  • A maximum of 2 claims within a 12 month period, with the limit of $1500 per claim.
  • The coverage must be taken within 14 days of purchase of the device.

NOTE: If the smartphone is being purchased through T-Mobile’s JUMP! Early upgrade plan, then Premium Handset Protection and Lookout Mobile Security Premium are also included within the monthly JUMP! Fees of $10.

Insurances bought from other third party providers are similar, but there are some key differences. The icing on the cake is that you can sign up at any time after purchasing the phone as long as it is 100% functional without any prior damage of manufacturing defect. Many of them also offer cash compensation for the broken phone instead of either replacement or repair.

Extraordinarily enough, you might find that the policies being offered by other companies instead cover accidental issues that Asurion does not, such as display glitches, issues with your antenna or wireless connections, or touchscreen failures.

Speaking about the manufacturer’s warranty, they do not cover the personalized data on your phone like- contacts, music, photos, apps and other customized software.

Things to keep in mind:

  • Most carrier insurers will either replace or repair your old phone. You will not be provided with an exact new phone but rather a “refurbished” one and there are various reports of customers receiving second-hand phones with malfunctions. Some insurers might offer you a cash reimbursement for the replacement value of your device instead.
  • The warranty will not cover pre-existing problems, issues concerning software or data, damages caused intentionally or through carelessness, natural occurrences, routine wear, and tear, or if any unauthorized has been carried out.
  • The insurance will be added to your monthly cell phone bill if you are opting for it from your carrier.
  • Before taking any step further and buying individual cell phone insurances, check if you already have any existing coverage. Renter’s and Homeowner’s insurance may have been already covering your phone without you needing any additional protection.

Is Cellphone Insurance worth it?

    A major disadvantage of cell phone insurance is that user will not be provided with a new phone if the insurance is claimed and old device is beyond repair. Instead, you will be provided with a refurbished phone which may not be the same model as yours. Rather it will be a ‘comparable model with similar features’ in full working order and the second-hand replacement will never feel like a new one.

If you have small children or work in a high-risk environment or prone to losing your phone then, in these cases claiming the insurance is worth it. However, approval of the claim depends on upon the insurance provider. It does not cover normal wear and tear or cosmetic issues that do not affect the functionality of the phone.

Economically speaking, it would be quite inexpensive if you buy a new phone with the money you are going to spend on insurance. Spending on insurance every month then on damage or loss getting a second-hand refurbished phone in place of a new one does not sound logical.

Cellphone Manufacturer’s Warranty

The warranty offered on any electronic device can vary from one to two year by the manufacturer. The user should read the terms and conditions liable on any product before making a purchase regarding the parts and issues covered by it.

The major benefit of warranty over insurance is that warranty covers drops, mechanical faults, and failures not caused by the user. However, it does not cover accidental damage, theft or loss and the time and money spent on the product to get it repaired. For instance, if your smartphone which is under warranty period breaks down without your fault then, you are entitled to repair or replacement for your phone.

Along with hardware repair, warranties also cover software issues like freezing or crashing. Please make sure that you back up all your important documents, pictures, music and customized applications. Backup of data is necessary because of fixing of software issues generally, involves restoring your phone to factory default (the process which wipes all the data on a cell phone) and the phone will look like a new one.

Things to watch out for:

  • Warranty becomes void if the phone gets wet. Generally, a moistness indicator is present the back cover of the phone. If the cell phone comes into contact with water then the phone will be considered out of warranty.
  • Unlocking your phone from its network through the cell phone carrier does not void the warranty as it is considered as an official unlock. However, if unlocking is done by any unofficial retailer or by oneself then, it will be considered out of warranty as the tamper seal inside the back cover gets broken.
  • Rooting (Android) or jailbreaking (iOS) the phone declares the phone out of warranty.
  • Faulty software or firmware downloaded on the phone violates the terms and conditions of the warranty.

Implied warranties

As an addition to the written warranty,” implied warranties” which are created by the state, covers the products. Basically, they are promises from the seller to the consumers that the product you have bought does what it has been advertised and is supposed to do. It is fit for use and doesn’t have any faults or defects from the manufacturer’s side.

Nowadays new phones come with a written warranty, but they are nonetheless covered by an implied warranty too. If an issue arises that is not included under the written warranty but happened without any interference or fault of your own, then you should take help from the protection granted by the implied warranty. For more information on the same, you can contact your local customer protection office or the Federal Trade Commission.

Extended Warranty

When you are buying a phone, with some additional fee, you can avail manufacturer’s extended warranty. The time duration varies from 12 months to 24 months extra after the time covered by the original warranty has expired, against malfunctions.

The extra cost doesn’t buy you more protection or benefits of any sort; it just buys you more time. The more time in which, if your device breaks down, the manufacturer can replace or repair the device.

Check your Credit Card

Before you sign up for it, it is recommended that you check whether you are already eligible for free extended coverage simply by using your credit card. For most of the major cards, if you charge an eligible purchase with the original warranty of fewer than 3-5 years to your card, the terms of the warranty will automatically be upgraded and extended for up to one additional year.

The benefit of a credit card extended warranty varies according to the type of the card and the financial institution from which it has been issued. Premium cardholders may find themselves at a better disposition than basic card holders. They usually don’t have to sign up ahead of time for qualification of protection, but the company might require some proof of purchase like receipts or a copy of the original warranty from the manufacturer.

I hope this guide helped you in ansering most of your questions. Please feel to comment below and like the post.

jenn angela
Jenn Angela

Jenn Angela is a seasoned technology writer specializing in US mobile and telecommunications. As a contributor to BuzzMobile.us, she offers clear insights on industry trends and provider analysis. With a practical approach honed through real-world experience, Jenn is a trusted voice in navigating the fast-evolving world of mobile technology.

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