Cell Phone Insurance: “Is It Worth It?”
For years consumers have thought purchasing insurance with their new device was the best route to take, considering the phone was worth hundreds of dollars (and after all the monthly insurance averages around $7.99 per month.) However, lets say a customer went on a relatively cheap plan, such as AT&T’s $6.99 a month insurance plan; if that customer makes a claim one year into his/her plan with a high-end phone that would require a replacement, that customer would be looking at spending a total of somewhere between $200 and $300. (Not to mention that customer would more than likely be receiving a refurbished device.)
If your mobile device happens to have a shattered screen, you would actually be better off avoiding insurance altogether, for there are many local repair shops that can actually fix your device at an affordable price while still saving money in your pocket instead of paying an average deductible of $200 (for an insurance-supplied refurbished device) on top of paying your regular monthly insurance plan. In addition, replacement parts on most devices aren’t too expensive, so finding a repair shop locally to fix your device for under $200 shouldn’t be a difficult task. In fact, most repairs at local repairs shops are well under $99 unless the customer needs an entire LCD assembly replaced (which the repair would still be less than the insurance’s deductible of $200 or more).
All in all, phone insurance is a profitable business for the insurer for a reason. Many companies such as Asurion would not be around today if these companies were paying out more in claims than taking in premiums from faithful customers.
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For more info call (813) 803-7979 or visit one of our GoGo Gadgets Repair stores using our Store Locator.