Cell Phone Insurance - Is It Essential

Cell phones are important gadgets that form the basis of everyday communication today. Being an expensive gadget, there are possibilities of cell phones being stolen. Moreover, many have a tendency to lose them, while some cell phones, just like any other gadget, fail to function. Insurance plays a major role in almost every aspect of life and cell phone insurance is a part of it. Most people don't tend to realize the importance of cell phone insurance until something goes wrong with their own cell phone.

Many insurance companies offer insurance on these handy devices. However, buyers need to make sure to seek the details of a policy prior to purchasing one. The cost of coverage is one of the important factors. Any deductibles need to be taken into account. By comparing the cost of a new cell phone with the cost of coverage, you can determine whether it is feasible to forgo the insurance, if the new phone falls cheaper.

A cell phone insurance policy must cover theft, loss, and damage. However, it is important that a buyer is aware of what situations are covered. Theft may require a police report in order to qualify for any insurance claim. Cellular providers often provide replacements for damaged cell phones, which minimizes the need for cell phone insurance.

For those with fairly expensive cell phones, insurance is most beneficial. However, the actual policy that needs to be considered and not the sales pitch you may hear from the insurance provider. Many limitations and exclusions are not found in any sales brochure. Some policies do not cover a cracked display or normal wear and tear that does not impede the mechanical or electrical functions of the cell phone. Replacements are also not immediate in some cases as the policy usually gives the insurance company the right to repair or replace the phone. Replacement with the same colors and features are not guaranteed either. Therefore, it is essential to understand the terms and conditions prior to opting for cell phone insurance. Read a copy of the actual policy and determine the extent of coverage and the exclusions. Never make a decision on impulse at the store. You have at least two weeks to a month to decide on cell phone insurance.

Cell phone insurance is provided by a third-party, the insurance company, and not the phone company (I checked with my insurance law attorney). In case your claim is rejected, the phone company may not be of much help. Unlike other insurance policies where monetary compensation is awarded, with cell phone insurance all you can receive is a phone.

Purchasing cell phone insurance at $5 a month won't be feasible for a lower end model. If you feel the need for cell phone insurance then opt for a policy that will ensure speedy settlement of any claim. You can purchase cell phone insurance online. Compare the different policies and rates of various providers prior to selecting an insurance company to deal with. Better still, take care of your cell phone. Prevention is better than cure.