Do You Really Need Insurance for Your New iPhone? Or Is It a Scam?

Do you really need smartphone insurance? While “needing” something is relative in this case, it’s truthfully a lot smarter to just bite the bullet and buy that iPhone insurance package: Here’s why.

Many people spread out the cost of an iPhone by leasing or purchasing it on an installment plan. While that makes them seem more reasonable, it doesn’t change the fact that modern smartphones are expensive. Then, carriers will try to upsell an insurance package. You might be suspicious of salespeople getting you to purchase something you don’t need. That’s understandable. But take it from us. We’re not selling you an insurance package for your smartphone — we don’t have a stake in whether you buy it or not. Yet we can safely say that opting for premium smartphone insurance is a really good idea.

Just imagine this scenario:

1. You buy a $999 iPhone X from your carrier on an installment plan.
2. A few weeks later, your iPhone gets run over by a car. Long story short: your shiny new device is completely destroyed.
3. If you don’t have smartphone insurance, your carrier isn’t going to cut you any slack.
4. You still have to pay the remaining $999 for a device you can’t even use, and now you have no phone.
5. On top of paying the $999 outright (or on installments), you’ll have to begin making additional payments on another $999 iPhone X.

While the above scenario is partially hypothetical, it’s completely realistic. Accidentally, this iPhone 8 Plus (pictured above and below) fell into moving traffic during rush hour, and was subsequently ran over multiple times before its owner could finally retrieve it. The phone’s case wasn’t able to save it in any sort of capacity, and the phone will never be able to be repaired.

Catastrophic smartphone damage happens a lot more than you think. Even if you’ve never dropped a device in your life, you ultimately can’t control if or when your iPhone gets inadvertently damaged. Put simply, why take the risk?

While you’re probably going to have to pay a deductible or service fee, it’s undoubtedly going to cost a lot less than the full cost of a new iPhone.

Other Benefits of iPhone Insurance

Many carrier-based premium device protection packages also shield you against loss or theft. You’ll have to read the fine print on which packages cover which type of damage. Even if your iPhone is lost or destroyed, a premium handset protection package can save you some serious cash.

Similarly, if you’re buying your phone directly from Apple, it might be smart to purchase AppleCare+ extended warranty. It’ll cover everything that the standard warranty does for an extra year, but also includes two incidents of accidental damage coverage.

Another factor is that iPhones hold their value incredibly well. For example, the iPhone X has set a record for how well it retained its original value in secondary sales, according to the results of a new study.

If you purchase smartphone insurance now, it could pay off later. Buying an iPhone could be seen as more of an investment and less of a luxury if you can sell it for a good percentage of its original value down the line.

Which insurance plan you go for is up to you and your circumstances. But, again, it’s smarter to get some type of insurance than it is to forego a protection plan entirely.