Cell Phone Insurance - What Is It
Cell phone has become an indispensable gizmo. People virtually freak out if you tell them that you do not possess it. It. But then, what if it gets stolen, lost or damaged. How would you feel then? Third party insurers offer you insurance over the cell phone the moment you buy it from a cell phone shop. However, here the insurance contract does not bring in the cell phone sellers in any way. It is an agreement where you have to pay a nominal monthly fee and late deductible.
Shall you get yourself cell phone insurance? Well that depends upon many factors. Primarily, let this be known that those who do not lose their cell phone ever subsidize for those who do. It is a simple insurance basic. Cell phone insurance companies like other insurance units do not mint money anywhere. They pay for replacement phones from the amount accumulated from people who do not utilize their insurances. Now, you have got to assess in which group you fall.
If you are rather conservative with your cell phone and keep it fastened to your belt all the time or have got a tracker allocated to it then you are one who might not lose it or get it damaged. In such a case, you shall not opt for insurance. Also, look at your handset. Is it a high-end model or a low-end? Generally, both are insured at similar monthly interest and deductible. If it's a high end model, get it insured. It's because the cumulative deductible and interest would still be less than what you will have to pay for a new model.
In this case you have got to pre-confirm in written, that the insurance companies offer a similar model in case of theft or damage. It has happened far too many times in the past that you have lost a model and the replacement units have provided you another model. On being questioned they come up with a simple excuse of unavailability or citing that the model has become redundant and are no more in stock. It's quite another thing that if you are ready to spend money, the same model is available over shop counters.
For people who lose their cell phones within moths of buying it, cell phone insurance is still a boon. But those who have lost it a couple of years after buying the gizmo, cell phones insurances eat up more than the replacement cost. For instance, if you buy your cell phone for $200 and pay a monthly insurance of $5 with a deductible of $90, you will benefit only if you claim insurance within 21 months.
So you have got to measure the pros and cons perfectly.