Cellphone Insurance: Bargain Or Not?

I know you are as excited as I am for October. No, not because of Halloween or the first snow … it's Financial Planning Month! And what better way to plan for your financial future than to make sure you have adequate insurance? Life, car, home, renters or health -- they're all policies adults should have. But what about the highly-advertised "niche" policies, like cellphone insurance?

Experts used to eschew cell insurance because the cost of the insurance would usually outweigh the price of a new phone. But expensive smartphones may be changing the game. Now, the prospect of losing your iPhone in the kiddie pool or dropping it on the street may make you wonder if insurance on your several hundred dollar baby might be worth the investment.

When I looked into this I found Apple, for instance, offers a limited warranty on the iPhone for a year, but it doesn't cover a lost phone. You can extend your plan with "AppleCare+" for up to two years, for a fee, plus a $49 service charge per incident.

With other private insurers, you can buy a plan for $12 to $15 per month. But when you total up the premium and deductibles, it's possible to pay almost as much as the cost to replace your phone. So today's conventional wisdom? Most experts I could find who've written on the topic say, at this point, it's more cost effective to invest in a high quality protective case.

Still, if having phone insurance would just give you peace of mind, you can check out this link for some pricing info:
http://gizmodo.com/5571866/your-iphone-4-warranty-and-insurance-options,
Also, here's a link to AppleCare+ plan info: http://www.apple.com/support/products/iphone.html

And for more on this topic: http://money.usnews.com/money/blogs/alpha-consumer/2011/11/14/should-you-insure-your-new-iphone-

About The Blogger

- In her Brooke's Bargains blog Brooke Wagner writes about finding bargains and saving money for her family. She calls it one of her favorite hobbies. Blog entries cover everything from the latest steals, deals, and freebies to cheap family activities, saving for college, and what to buy right now. Tweet Brooke your ideas at @BrookeCBS4.