It sounds like a great idea paying a small amount of money monthly to have your iPhone replaced whenever the need arises. However, month-to-month phone insurance is not always as helpful as it is made to appear. It comes with limited replacement options, policy restrictions, and high deductibles, making it less desirable. If you are thinking of taking iPhone insurance, ensure you understand a few important things.

Who Should You Purchase your Phone Insurance From?

There are many options for your iPhone insurance:

1.The first option is Apples own insurance plan. This is commonly referred to as AppleCare, however the most comprehensive service which is covers all major reasons for insuring your phone e.g. accidental damage, theft etc is included.

Pros:

-High quality care.

-Highly specialised in iPhone as they are the owners of the brand. Best, most knowledgeable customer care.

Cons:

-Overall very expensive compared to the other options.

2.The second option is choosing a specialist in iPhone insurance. These include insurance companies who are specialists in mobile insurance.

Pros:

-Low monthly payments.

-Lots of different policies you can tailor to your needs.

Cons:

-With so many companies to choose from it can get rather confusing who has the best policy for your needs.

3.Your third option is insuring your device through your bank or building society.

Pros:

-Convenient as it reduces the number of services you are signed up to.

-Lots of potential offers if you are a loyal customer.

Cons:

-Customer service low.

-Many exclusions.

4.Include it in your home insurance plan. Sometimes your mobile insurance is included in home insurance plan so you should double check.

Pros:

Your home insurance policy may already include iPhone insurance.

Cons:

The excess when claiming on home insurance is usually high.

If you keep claiming your entire premium will go up and as you are insuring lots of items, this could be a considerable amount.

How Big a Deductible Will You Face?

You will pay a deductible for any claim you make, regardless of whoever you purchase your cover from. This can come as a shock, especially if you had no idea. When signing up for an insurance plan, many people do not notice these fairly large deductibles. They assume that monthly payment is all they need. Deductibles usually range between £50 and £200, depending on how new your device is, and the type of iPhone model it is. If your iPhone is brand new, your deductible is likely to be higher than if you had an old one. Third party companies offer lower deductibles but cover fewer incidents. Some companies will reward you if you do not file any claim. Such rewards may be in form of a deductible discount. For example, if you manage to go for six months without any incident, you get to save between 25 percent and 50 percent off your standard deductible.

Pros and Cons of Insuring Your iPhone in Different Ways

Pros
• If you have a history of losing or damaging your phone, then phone insurance is the way to go.
• If you do not like dealing with the full cost of replacing your phone, then you are better off with this kind of cover.
• If you have small children or pets, phone insurance will come to your rescue in case of any calamities.

Cons
• You can still protect your phone against damage without having to incur the costs of phone insurance by getting a good case for your phone.
• You can get a subsidized phone if you use your old phone until the expiry of its contract. So there is no need for a phone insurance.
• Deductibles for phone insurance are way too high compared to other forms of cover like homeowners’ insurance.

iPhone insurance can be a great idea for owners who are exposed to the risk of losing or damaging their phones. On the other hand, it is absolutely unnecessary if your level of risk is not that high. As an iPhone owner, weigh your circumstances to see whether or not you need cover. When you realize you do, go for a cover option that meets your specific needs, but remember to do your research based on the options provided.