Other LanguagesKING TV interviewed me this week for a report about cell phone insurance. A consumer contacted the station after discovering it would cost her nearly as much to have her phone fixed as it would to simply buy a new one. The reason? Although she’s been paying $5.99 a month for insurance on the phone, she was surprised to learn she’d also need to pay a $100 deductible.
These add-on service contracts or insurance programs aren't duplicative of your manufacturer’s warranty. Exemptions tend to be broad so if the contract doesn’t specifically say something is covered, you should assume that it isn’t. You may have to pay a deductible. You might also be responsible for shipping costs. And if your phone is kaput, you might receive a refurbished one instead of a new replacement.
Chances are your phone salesman won't tell you all this during the pitch; you'll have to read the actual policy to decide whether it's worth it. One alternative is to “self insure” -- simply set money aside in your bank account or under your bed in case you need to buy a new phone.
You might also be wondering about the optional programs that cover you in case your phone is lost, stolen or accidentally damaged. Again, read the fine print. Then decide whether this "peace of mind" purchase is right for you.