Cell Phone Insurance

Losing or breaking your cell phone can really set you back, both in terms of finances and convenience. And having it stolen is even worse. That's what makes getting cell phone insurance appealing for many. With this coverage in place, you can get a replacement phone quickly or even get reimbursed for repairs. 

An independent insurance agent can help you find the right kind of cell phone insurance for you. They'll ensure you get all the coverage you need for your handheld device. But for starters, here's a breakdown of cell phone insurance and where you can get it.

What Is Cell Phone Insurance?

Cell phone insurance is a special type of personal property insurance designed to cover issues that arise with your cell phone. Coverage can pay to replace or repair your cell phone if it gets lost, damaged, destroyed, or stolen. 

You'll pay a premium towards your policy in exchange for this coverage. If you have to file a claim, you'll need to pay your deductible out of your own pocket before receiving reimbursement. Coverage limits and deductible amounts vary by insurance company. 

Cell Phone Loss Statistics

Many people have lost or damaged a cell phone at least once in their lives. Here are some statistics about U.S. cell phone ownership and incidents of damage:

• It's estimated that nearly 80% of U.S. residents own at least one cell phone.
• About 45% of cell phone owners are expected to damage their phones at some point.
• About 38% of cell phone owners are expected to drop their phones at some point.
• About 28% of cell phone owners are expected to drop their phones into liquid.
• It takes an estimated 10 weeks for most people to damage their phones after purchase.

The loss of your cell phone is both inconvenient and expensive. If your phone would cost a small fortune to replace, you may want to consider cell phone insurance to protect you from loss, damage, destruction, or theft.

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When Bad Things Happen to Good Cell Phones

Most cell phones come with warranties from the manufacturer covering all damage from defects or mechanical failure. Manufacturer warranties usually cover defects for one year. However, a manufacturer’s warranty will not cover a replacement phone if you drop the phone and smash it, if you spill coffee or other liquid on it, or if your phone gets stolen or lost.

Cell phone insurance reimburses you for accidental damage or theft not covered under the warranty. With mobile phone insurance in place, you can typically get a similar replacement for your damaged or destroyed phone.

The deductibles for cell phone insurance are usually pretty affordable compared to the coverage provided. When it comes to a high-end smartphone that costs $1,000 or more to purchase new, paying a relatively small deductible in comparison can make a lot of sense.

A Manufacturer’s Warranty Is Not Mobile Phone Insurance

Unlike cell phone insurance, the manufacturer’s warranty usually lasts for one year and covers manufacturing defects or mechanical issues. As long as you have taken all possible precautions and used the phone properly, you can get a replacement for a malfunctioning phone with your manufacturer’s warranty.

However, cell phones can be stolen, lost, or damaged by accident, which isn’t covered by a manufacturer’s warranty. Mobile phone insurance policies fill in where your warranty ends. If you have a high-end model, coverage for loss and damage especially makes sense.

Does Your Homeowners Policy Include Cell Phone Insurance?

Any coverage for cell phones included in your homeowners insurance policy is probably not enough to replace your phone. A typical HO-3 homeowners policy insures all direct physical losses of all personal property listed in the policy document. The only condition is that a covered peril needs to be the cause for the loss, such as a fire or theft.

Therefore, if you specifically listed your mobile phone and insured it against theft, you would receive coverage for the theft of the mobile phone. Your home insurance company may have required you to purchase extra coverage to insure a valuable electronic device, however. 

If your theft coverage pays for the depreciated value of the phone, you'd still pay a considerable amount to buy a brand-new one. You also need to pay a deductible before your coverage kicks in. But adding your cell phone to your homeowners policy or getting a separate rider can ensure that you’re covered when something happens to your phone.

What to Look for in Cell Phone Insurance

Insurance for mobile phones makes sense under certain circumstances, but you want to be sure you're getting the benefit and value you need. Here are some questions to ask:

• What is the coverage and scope of the insurance? Does the policy cover accidental damage, phone theft, and loss?
• How much does the coverage cost? Multiply your monthly premiums by the length of the policy and then add the deductible. If the price of a new cell phone is less than the amount you'd be paying, buying a new phone might be a more cost-effective option.
• How will the cell phone be replaced in the event of a loss? Will you get a similar model or a better one? Will the replacement be a new phone or a refurbished one?

An independent insurance agent can also advise you on coverage specifics to look out for when weighing cell phone insurance options.

More Considerations When Evaluating Cell Phone Insurance

Only you know whether cell phone insurance makes the most sense for you. When deciding whether to buy coverage, consider the value of the cell phone and your usage. 

If you're a person who uses your phone for everything from staying in touch with your family to managing your email, consider whether you can afford to be without it. Are you a very careful person, or do you tend to drop your phone?

Ask yourself these questions:

• What would it cost to replace your phone out of pocket?
• If you're considering insurance, how much is the deductible?
• Will the insurance cover the cost of calls a thief made after stealing your phone?

Your insurance coverage should fit your needs and offer the protection you're looking for specifically. When you research your options, take the time to get a few quotes before you buy so you can feel confident that your coverage has a high value and can protect your investment adequately.

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The Best Cell Phone Insurance Companies of 2024

Cell phone insurance can be added to homeowners insurance policies by many different carriers. However, some insurance companies sell cell phone insurance as a special, separate product. When you're looking for the coverage you need, you want to skip straight ahead to the best options. That's why we've put together this list of the best cell phone insurance companies around.

• Best overall: Progressive
• Best for member savings: USAA
• Best for claims: Asurion
• Best for rates: AKKO
• Best for families: SquareTrade (by Allstate)

Best Cell Phone Insurance Company Overall: Progressive

Progressive offers the cell phone insurance you need at highly affordable rates. They offer two-year policies with a $75 deductible and a premium of only $153. 

Progressive's cell phone coverage can reimburse you for theft or vandalism of your cell phone, as well as damage due to fire, flood, natural disasters, drops, spills, and power surges. Most importantly for many folks, Progressive's coverage also pays to repair cracked screens.

Coverage highlights:

• Two-year premium of only $153
• Includes coverage for cracked screens
• Affordable deductible
• Includes coverage for drops, spills, and power surges

Best Cell Phone Insurance Company for Member Savings: USAA

USAA offers its members an average of 22% savings on cell phone coverage. The carrier offers one or two-year plan options. 

But USAA also offers additional security features in addition to its coverage, including a SafeStore app and the ability to lock and locate your phone remotely. A two-year prepaid plan from USAA costs about $7 per month.

Coverage highlights:

• Three payment plans available
• Members can save 22% on average on coverage
• SafeStore app included for additional security
• Estimated premiums of only $7 per month

Best Cell Phone Insurance Company for Claims: Asurion

Asurion offers customers an extremely easy and user-friendly claims process. You can insure one cell phone or multiple devices with Asurion's coverage. 

An average deductible ranges from $29 to $499, and average monthly coverage premiums are only about $12 to $15 per month for a single cell phone.

Coverage highlights:

• Single or multiple-device coverage available
• Low monthly premiums
• Multiple device premiums average just $45 per month
• Easy and fast claims process

Best Cell Phone Insurance Company for Rates: AKKO

AKKO offers highly affordable monthly premiums with its cell phone coverage. An average monthly premium for a single cell phone ranges between $6 and $12, while insuring multiple devices will only cost you an extra $2 to $3 per month. Deductibles range from $29 to $99.

Coverage highlights:

• Some of the most affordable rates available
• Can insure single or multiple devices
• Only $14 to $15 monthly premium to insure more than one cell phone
• Affordable deductibles

Best Cell Phone Insurance Company for Families: SquareTrade (by Allstate)

Allstate's SquareTrade cell phone protection plans offer affordable coverage options for single cell phone owners and families alike. Average deductibles are $149, while monthly premiums range from $8.99 to $19.99. You can insure a single cell phone or multiple devices. Allstate's coverage also provides higher annual claim allowances than many other carriers. 

Coverage highlights:

• Single and family plans available
• Higher annual claim allowances than most carriers
• Monthly premiums range from $8.99 to $19.99
• Deductible of just $149

Why Work with an Independent Insurance Agent?

Independent insurance agents are experts in finding you the right kind of cell phone insurance and any other type of coverage you need. They can shop and compare policies from tons of different insurance companies for you, then present you with only the best quotes together in one place. Also, they're available down the road to help you file claims if you ever need to.