Top 10 Myths About Cell Phone Insurance

cell phone insuranceAs with any other form of insurance, cell phone insurance too, has its share of myths and stories. Here we give you the top 10 cell phone insurance myths, busting them all the way. Check them out!

You Have To Take Out Cell Phone Insurance

You don’t need to take out separate cell phone insurance. Check if your home insurance, bank account or credit card provides coverage for your cell phone.

Only Specialist Coverage Is Good

Go for basic coverage for loss, damage or theft. Avoid specialist coverage for lost applications and expensive games; the flip side is huge premiums, no coverage for accidental damage and excess charges.

You Don’t Need Insurance If You’re Very Careful

No matter how careful you are while handling your phone, it doesn’t mean that your phone cannot be stolen by some clever person. Or, your phone could suffer damage via your kids’ clumsy handling. You never know. You definitely need cell phone insurance.

The Deductible Makes Coverage Expensive

This is true in some cases, where companies have a huge deductible component. However, if you choose a provider who offers lower deductibles, you can get around this problem. There are several insurers who offer affordable and friendly coverage, such as

Insurance Claims Are Complicated

There are complicated insurance providers and there are those who make the claim process easy. Always speak to other customers, look up reviews on forums and on social media before signing up. Look for online companies that allow easy claims, in just a few clicks.

Insurance Claims Must Be Bumped Up

Some people tend to bump up their claim by 10%, thinking that either way the insurer will knock off 10%. Please don’t practice this, it is fraud. This myth stems from the discounts that retailers offer to insurers for device replacements.

One Can Demand Cash Over Replacement

Whether to offer cash or replacement device is left to the insurer’s discretion. The insured have very less to say about this. However, if your device is an unusual one and you know the insurer may not get a new or even refurbished replacement, you can demand cash.

Cannot Claim If Pet Damages The Phone

So if your pet cat happens to scratch your latest iPhone with her claws because you ignored her, you’re not covered? Damage is damage, whether it’s by human hands, pets, or entirely accidental. As long as you have coverage for damage, this will be covered.

Insurers Reward Loyalty

One would think that if you regularly take out insurance from a particular provider, they would reward you with better coverage and options. Not true. Insurers offer their best policies to new customers, not to old ones. You can shop around when your renewal is due, and get a ‘new customer’ deal elsewhere.

Cheap Insurance Works Best

You need the right level of coverage, especially if you have an expensive phone. Imagine that you drop your new smartphone 3 days after the purchase. Your cheap insurance may not be able to replace it or pay the cash in full.