Is Smartphone Insurance Worth Buying?

Mobile phones have come a long way from being just a medium of communication to an all-in-one gadget that performs several other tasks that we never imagined could be done without a computer. With the added features and increased demand, the cost of quality smartphones is rising. While there are many affordable options to buy a smartphone, individuals, especially millennials and gen-z, prefer to have the latest gadget with all the latest features. Buying expensive smartphones is an affordable luxury for many, whereas some individuals buy smartphones on EMIs if they do not have sufficient cash at the moment. Since a smartphone is the most expensive gadget that most of us carry around, it makes sense to consider insuring it. But is smartphone insurance really worth it?

For some reason, our cellphone is very close to our heart. My dad had gifted me my first cellphone just a few days before my college picnic. On the last day of our picnic, I was sitting near a swimming pool with a group of my friends, and one of my friends gave me a push. While I managed not to fall, my phone slipped out of my hands. It happened some 12-14 years back when cellphones were not water-resistant! I panicked and tried calling the mobile phone company to check whether the warranty will cover it, but no luck. You or someone from your family must have gone through a similar experience of damaging or losing your smartphone and wondering whether it will get covered in the brand warranty.

Generally, smartphones come with a one-year warranty that covers manufacturing defects and hardware malfunctions. The smartphone companies also offer an extended warranty for another one year or two for an extra cost depending upon their policy. However, the brand warranty does not cover accidental damages, such as screen damage, body damage, water damage, etc. or loss of a smartphone due to theft or robbery, etc.

Let us see what is covered in smartphone insurance (Smartphone Insurance Coverage):

1. Accidental Damage:

Our hearts skip a beat when we accidentally drop our phones on hard surfaces like roads or floors. An accident can cause internal damage to the software and/or external damage to your phone, such as screen breakage, body breakage, etc., that can cost a pretty penny. If you have bought a phone through an EMI facility, such expenses could be unaffordable. However, the insurance company will cover those expenses if you have opted for smartphone insurance.

2. Water or Liquid Damage:

Water or liquid damage is another common damage that can completely stop the functioning of your smartphone due to internal damage. Sometimes even humidity or moisture can damage the phone, and even that is covered by most smartphone insurance plans.

3. Repairs And Replacement of Parts:

The repairs and replacement of certain internal and external parts, especially for the latest and most expensive models, could go very high. Having smartphone insurance will cover all these costs.

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4. Theft And Robbery Protection:

If you do not save your smartphone data on cloud, it might not be possible to recover the data when your phone is stolen. While you should register a complaint, it is difficult to get the cellphone back. But the financial loss could be compensated by a smartphone insurance policy.

5. Loss of Phone:

Similar to theft, it is quite challenging to recover the phone when it is lost as there is a high chance of not returning it when someone finds your phone. If you have a smartphone insurance plan, this loss could be covered.

Now let us look at what is not covered by smartphone insurance (Smartphone Insurance Exclusions):

1. Normal wear and tear

2. Damage due to wear and tear

3. Electronic or mechanical breakdown in the device

4. Device damaged or lost when in possession of a third person

5. The phone goes missing mysteriously

6. Theft of a device from an unattended building or vehicle

7. The phone is used under any abnormal conditions

8. Damage due to changes in climate or atmospheric conditions

9. Intentional damage to the device, i.e., a willful or malicious act by the owner that causes damage to the device

10. Damage caused during the repairing process

Is Smartphone Insurance Worth Buying?

Whether or not you need smartphone insurance depends on your device's cost and risk appetite. If you have a low to medium-range smartphone and you can easily afford to repair or replace it without starching your budget, you might not need to consider buying a smartphone insurance plan. But if you have gone out of budget to buy your smartphone and the repair and replacement of the same could be unaffordable or disturb your budget, then you should consider buying a smartphone insurance plan.

Your smartphone insurance buying decision should also be based on whether you frequently lose or damage your phone. If you are not good at handling cellphones and tend to lose or damage them often, then it makes sense to buy a smartphone insurance plan for your handset.

It is advisable to compare different premiums of different insurers as the premiums charged for smartphone insurance plans considerably vary from insurer to insurer. Also, the insurance coverage needs to be assessed in correspondence with the premium charged. Paying a huge premium for lower coverage or a non-premium smartphone might not be a good decision.

If the chances of you losing or damaging the phone are low, and you cannot afford to repair or replace the phone, you need not buy smartphone insurance. But, if you cannot afford to repair or replace the handset and are prone to losing or damaging the phone, you should consider buying a smartphone insurance plan. However, ensure that the premium you are paying is in line with the coverage it offers.

To conclude:

Covering your handset with smartphone insurance is a great way to secure it financially against any loss or damage. However, whether buying smartphone insurance is worth it or not entirely depends upon your usage, the price of the device, your financial situation, and how much risk you can afford to take. The coverage and exemptions shared above are general and may vary from insurer to insurer. Hence, it is advisable to carefully read the coverage, exemptions, terms and conditions, etc., before buying a smartphone insurance policy/plan.

Warm Regards,
Ketki Jadhav
Content Writer