November 11, 2010

Should You Purchase Cell Phone Insurance?

There are many of you wondering if you should purchase the cell phone insurance.  Most financial advisors, such as Clark Howard, say that in most cases you should not get the insurance. 

If you have a regular cheapo cell phone (like me), then I wouldn’t recommend getting the insurance.  A simple math sentence of $5 x 12 months will tell you that it’s just not worth the money.  You can purchase the cheap phones on ebay or Craigslist usually for less than $50.  The ordinary phones with no bells or whistles are generally easy to come by and last a few years.  The problem with the expensive phones and Smartphones is that are known to have problems.

Take my husband’s phone(ssssss) for example.  He has had probably a DOZEN phones from Verizon.  He first started out with the Blackberry.  After getting about five Blackberry Storms and two Storm 2s, Verizon gave him a Droid. After having a few Droids, they told him the problems were from the things he had downloaded on to his phone and for him to take off all of the applications.  HUH?  What’s the point of having a data phone if you can’t have apps on it? 

All of the phones were sent back for issues such as locking up, not receiving data, the phone staying lit up, etc.  The problem is that when you send back your phone, you’re not getting a new phone; you’re getting a “refurbished” phone.  I have no clue what qualifies these phones as refurbished because they have many issues.  Just a few months ago, we dropped off another Verizon phone at a Charlotte, NC FedEx location to be shipped back and the representative at this location told my husband that they ship approximately 30 phones from that location each day!  Ok, ok, this is moving towards the craziness of Verizon so I’ll move on.

Basically, the advice is this:  If you have a regular cell phone, then the insurance probably isn’t worth the money.  If you have a more expensive phone, I’d strongly consider it.

Do you have insurance on your cell phone? What kind of experiences have you had?

Edited:  Be sure to read the fine print on cell phone insurance policies. Some charge a $35 deductible.

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Karen

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