Is it worth having cell phone insurance or is it a waste of money?

Cell phone insurance is an additional option to your service that can cover your cell phone against accidents, such as theft or robbery. Depending on your cell service company, you may want to have cell phone insurance against accidents or theft on your device. But is it really necessary?

Is cell phone insurance worth it?

Buying a cell phone insurance plan is a good idea if…

  • You are prone to losing your phone
  • You have had a broken screen with your last cell phones
  • It is an expensive cell phone (like an iPhone 13)
  • The price of the insurance is not more than 3% of the value of the cell phone
  • You plan to change your cell phone in 1 or 2 years

Let’s explore some of the ins and outs and see if cell phone insurance really pays off, as you’ll find that not everything is as easy as it seems.

What does cell phone insurance cover?

The best cell phone companies in the United States (AT&T, Verizon, Sprint and T-Mobile) offer phone insurance plans that include coverage for theft and loss, but it is extremely important to read the fine print because they have many exceptions that could invalidate your coverage.

For example, before adding theft insurance for your cell phone, find out if you’ll need a police report to be eligible for a theft claim. You should also ask how much it will cost to get a new phone (or how much the “deductible” payment will be for theft).

Another example: most contracts include a maximum on the dollar value of your claims each year (for example, a maximum of 2 claims per year, with a maximum of $1,500 in damage/loss/theft claims allowed).

Also, the cost and coverage for accidental damage varies by cell phone company. Cell phone insurance may cover loss, theft, physical or liquid damage, and mechanical and electrical breakdown due to defects, malfunctions, or normal wear and tear.

However, repairs come with a $25-125 deductible, so keep in mind that repairs won’t be free.

Your claim may need to be approved before you qualify and you can only have the device repaired at a facility approved by the phone company.

So read the fine print if you really want to know if cell phone insurance is right for you.

Cell phone insurance cost and comparison

As we have already seen, apart from the monthly cost of cell phone insurance, you will have to pay a deductible if you need a repair or replacement.

To help you, we have compared the phone insurance plan of several cell phone companies:

T Mobile

T-Mobile offers 4 different cell phone insurance plans, ranging from $4 to $12 per month. The $4 per month plan includes Lookout Mobile Security Premium, which covers your phone’s data and helps you locate your device remotely on a map or by ringing wirelessly. It is very useful if you lose your iPhone or Android phone.

T-Mobile’s $10/month insurance plan protects your phone against accidental damage, loss, and theft. T-Mobile’s $12/month cell phone insurance plan offers the same protection as their basic plan and also offers the Lookout Mobile Security app and covers phones in the JUMP! This allows you to upgrade to the latest phone models after paying 50%.


He charges $7 a month for cell phone insurance. The plan includes protection from theft, loss and accidental damage or malfunction of the protection. Deductibles range from $50 to $199 (phones are $199 to replace).


You have several different protection plans available, such as the $9-$11/month Total Mobile Protection plan (which includes comprehensive device coverage and the Tech Coach support option) and the $7-$9/month Total Equipment Coverage plan (which includes covers the device if it is lost, stolen or damaged and comes with a $99-199 deductible for smartphones).


It charges between $9 and $13 a month for its Total Equipment Protection plan (the higher plan includes tech support and more data backup for phone content). This includes coverage against loss and theft, as well as accidental damage and phone malfunction. Sprint’s deductible ranges from $50 to $250, depending on the price of the phone. Most iPhone and Samsung Galaxy models cost $200 to replace and $100 to repair using Sprint cell phone insurance.


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