In the 21st century, smartphones and computers have become an essential part of daily life. China, as the country with the largest number of mobile users, has seen countless cases of lost, stolen, or accidentally damaged phones. Losing a phone isn’t just a financial setback—it can disrupt work, communication, and daily activities. Given this, is it worth buying insurance for your smartphone?
Maggie, a U.S. technology patent writer, jokes that people buy insurance because they don’t know what will happen tomorrow. If you lose, break, or have your iPhone 5 stolen within a few months of purchase, insurance might be a smart investment. But if your phone stays in perfect condition for two years, that insurance money is essentially wasted. From her perspective, Maggie considers herself a frugal person who’s willing to take the risk of not insuring her smartphone.
Jokes aside, Maggie emphasizes that before buying insurance, consumers should first understand the cost and coverage details. Many insurance plans don’t just extend the standard warranty—they may also cover accidental damage, theft, mechanical failures, or issues beyond the manufacturer’s warranty. Some policies even offer credit monitoring, phone unlocking services, or location tracking if the phone is lost.
For Apple products, wireless carriers often extend the coverage period, typically including mechanical damage and sometimes accidental damage as well. Apple itself offers AppleCare+, which costs an additional $99 and provides one extra year of coverage. This plan includes repairs and technical support, along with two instances of accidental damage repair, each requiring a $49 service fee.
While AppleCare+ is significantly cheaper than most insurance plans, it mainly serves as an extended warranty. If your phone is lost or stolen, AppleCare+ won’t help—which is an important factor for iPhone users to consider, given the rising theft rates of Apple devices.
Maggie also analyzed smartphone insurance costs from major U.S. providers:
- AT&T: $6.99 per month, with a deductible of $199.
- Verizon Wireless: $9.99 per month, with deductibles of $169 or $199 depending on the iPhone model.
- Protect Your Bubble (a third-party provider): $7.99 per month, with deductibles of $120 for iPhones and $100 for other phones.
Over a two-year period, Verizon Wireless has the highest total insurance cost at $410, followed by AT&T at $368 and Protect Your Bubble at $312. According to Protect Your Bubble, 45% of smartphone users have already purchased phone insurance, and this number is steadily rising.
So, should you insure your smartphone? That depends on your risk tolerance, budget, and how much peace of mind is worth to you.
