Should You Get An Insurance For Your iPhone 4?

By , Jun 30, 2010

Broken iPhone Screen

With twice the amount of glass surface on your iPhone 4, your chances of shattering any side of your device are twice as high. Insurance company Asurion figured this out and decided to offer protection plans for the iPhone 4.

For $12/month this company will insure your spanking new iPhone against every possible event: theft, loss, hurricane, oil spill, broken screen, screen cancer, you name it.

That sounds great, doesn’t it? Wait to read the fine prints then because there is a $200 deductible on this plan and replacing a phone can be costly. Although the iPhone 4 costs $199 or $299 with a two-year contract with AT&T, customers would need to pay the full retail price of $599 or $699 to replace a phone in the middle of the contract.

An insured owner who loses a phone after a year of use would have paid $144 in fees on top of the $199 deductible. That would be a total of $343, about half the price of a new phone. But the chances of losing or breaking a phone are far below 50 percent, making the price for the policy too high for the risk. And according to Asurion, the replacement phone might be a refurbished model.

Unless you drop your iPhone every other day, I think such a plan is useless and will cost you more in the end. If you break your iPhone in the first year, simply have it fixed by a repair shop, not by Apple as their prices are usually much higher than independent repair shops.

If you lose or get your iPhone stolen, simply look for an unlocked one on eBay or Craigslist. In the end, it will most likely cost you less than if you purchased this insurance plan.

That’s my 2 cents. What do you think?

[via Yahoo via Todd]

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  • RocNation

    Craigslist chalk insurance

  • Reno Sanchez

    I agree. I never get my phones covered because it is clear robbery in broad daylight on your face and the insurance companies are grinning at you behind your back. When they offer you cover its as easy as 1+1=2 but actually its 1+1=10 on their favor. It is hell of a hassle before you can claim from them.

  • Pete Leadk

    My home contents insurance policy at $34 a month covers my iPhone & $50,000 contents & 5 mill public liability. On iPhone claim there is a $100 claim fee. So I cancelled my Vodafone $10 a month policy as didn’t realize I was already covered.

  • Pete Leask

    Leask is the name
    Honesty my game

  • http://freebietrain.co.uk/ iPhone boy

    It’s a total rip off in my opinion.

    I never get phone insurance.

  • http://www.phonephix.com Art

    I evaluated the competition and decided to go with Phonephix instead of the AT&T plan. Phonephix offers coverage starting from $60/year with a $50 deductible for the first claim rather than $144/year with a $199 deductible.

    PHONEPHIX also does not have a 30 day from purchase restriction which I like since my phone was already 1 month old.

  • Ed Miller

    I disagree with the first comment. Insurance is not a ripoff if its the right one! Phonephix has worked great for me. I trashed my phone and got a loaner the next day. and the price is half of what the big boys charge. And home contents only covered with my deductible and only the purchase price of $99, not the replacement price. Phonephix worked for me.

  • iPone Lover

    I think it’s a great service. For a busy executive, who the heck has time to wait for a claim to go through? I will lose WAY more money by not having my phone for a day or two or more. This product gives me peace of mind…and THAT is worth a ton in itself.

  • Jemma

    In the UK iPhone insurance is much more worthwhile. The cost of replacing an iPhone is about £450 which is roughly $650. A policy costs around £5 per month ( see : http://www.compareaholic.co.uk/insurance/mobile-phone/iphone/ ) which is close to what this company are charging.

    But forgetting all of that, many people don’t realise that their home insurance will cover them for a lot of problems. Which magazine recently ran a column on it and described mobile phone insurance as one of the top ten useless financial products. ( http://www.which.co.uk/news/2010/06/top-10-useless-financial-products–216088 )

  • http://none Chris

    My dad recently had a problem with his iPhone 3GS and they replaced it with a brand new one on the spot. It was over a year old and he had apple care the ringer button was very lose and the only problem he had was the bezel being spaced out from the back and the rep said it was fine and covered by the apple care. He had an otter box defender on and has dropped it 100+ times

  • http://none Chris

    My dad recently had a problem with his iPhone 3GS and they replaced it with a brand new one on the spot. It was over a year old and he had apple care the ringer button was very lose and the only problem he had was the bezel being spaced out from the back and the rep said it was fine and covered by the apple care. He had an otter box defender on and has dropped it 100+ times.

  • http://www.iphonedownloadblog.com Tricked Consumer

    If you happen to like the following:

    – $7 to 10 dollars a month insurance fee – in my case 23 months = $161.00 up front ! –

    – 3 to 4 weeks to replace it, sorry too many people use your phone and it is backorder

    – $50 to 100 dollars deductible – [ $89 dollars in my case ]

    – Be sure to be home when they finally send you a replacement phone with 3 strikes signed delivery

    – if you happen to miss the delivery they will charge $35 for resending

    – Haven’t received the phone so not sure is a brand new or a refurbished one

    – Once I receive it I will have a 7 days limit for phone activation, I missed what is the consequence in case I exceed the limit

    – 10 days limit for old broken phone return, and a $120 charge in case you don’t

    All and all a great deal, sadly not for the consumer …

    why that doesn’t surprise me !

    So go, pay your dues to companies like Asurion and others, they are getting GOLD with our hard earn $$$ …

    Insurance is a good thing, but you should be aware of what you are signing up, that is quite different than the “No question asked … mantra” that they recite to you at the cell phone store !

    That reminds me of the DOG Insurance that charges you $1 a day for peace of mind, after having paid for almost two years my dog got sick, took it to the Vet and the bill was something like $280 … call the insurance to learn that the annual deductible was $300.00 FMD !

    If you find the above reasonable, continue paying your monthly fee but pray to the Almighty that you don’t have to use it. Or if you have, you will experience some spiritual growth given the amount of patience you will need to go through such experience.