Is Smartphone Insurance Worth It?

September 17, 2020

You own a retail store that sells smartphones and smartphone accessories. When your customers come in, you have the choice of selling them on not just their new smartphone, but also on insurance. Chances are these customers already have a handful of different types of insurance: home or rental insurance; car insurance; medical insurance. Do they really need insurance for their phone, too? 

Alternatively, you’re a large organization that needs to provide smartphones to your employees so they can better do their jobs. You’ve just invested in this new technology; do you really need to pay out that extra amount to insure the phones, too?

Here are some reasons to consider investing in smartphone insurance to share with your customers or for your business.

The Unexpected is Likely to Happen

No one thinks they’re going to drop their phone in a toilet or a cup of coffee, and no one plans for that to happen. Those are the moments that insurance is meant for: to help mitigate expenses and risk from unexpected accidents. 

Deductibles are Cheaper than Replacement Phones

Although a deductible may seem high, they’re usually a lot lower than the cost of a new phone. Even when you include the cost of monthly insurance fees, the cost of a new phone is an average of $545 in the U.S. A $100 deductible plus $5 a month in insurance costs is worth it in comparison.

A Protective Case Can’t Protect from Everything

It’s true that a protective smartphone case can prevent a lot of damage. However, they don’t protect from theft or loss, and most can’t help if you run over your phone when you’re backing out of the driveway. A solid insurance plan covers theft, loss and malfunction.  

It’s A Better Option Than Getting It Repaired

A little-known fact is that getting a smartphone repaired by a repair shop that is not certified by the smartphone brand can void the warranty. If you go in to get your cracked screen replaced, then your phone starts to malfunction, you may be out of luck. Even if your phone’s components are under warranty, that warranty is null and void because someone you found in the mall replaced the screen for you.

In contrast, an insurance carrier will replace the phone for you, giving you a new phone with a new intact warranty.

Want to learn more about configuring, customization and installation of IT products on your company smartphones? Contact Issoy today.