Does Cell Phone Insurance actually save your money?
Cell Phone Insurance has evolved as a hot option for the smartphone users. The fact that one out of every smartphone is damaged or lost in the first year makes it a more considerable option. Still, users are not sure about buying insurance for their smartphone. The big question that everyone has in his mind is ‘Will Cell Phone Insurance save my money?’ The answer is not straightforward. You cannot say yes or no because it depends upon the insurance option that you choose and also the situation.
Is Cell Phone Insurance a good option?
We can only talk about chances that your mobile will be stolen of damaged. No one can be sure about the situation. Thus, at the end of the year, it all depends on the situation if you saved more or spent more. Cell Phone insurance is most usable in an event where someone has stolen your phone or you have lost it accidentally. The ultimate gain or loss is determined by comparing the cost of insurance. The cost of replacement that incurred due to the replacement unit.
Factors to consider before opting for Cell Phone Insurance
The choice of investing or spending on Cell Phone Insurance depends on a few factors. One of the main factors is for how long you wish to continue with the same mobile. For instance, if you are looking to replace your mobile in say 6 months, Cell Phone Insurance is a good option. However, if you place to get the replacement phone in say 3 years, the cost of insurance can hurt you.
Let us try to understand this theory. If you plan to buy a replacement mobile in a few months, you would need to invest one once for to get a cover for the whole year. Also, the worth of your phone is highest during the first year from the date of purchase. Thus, it makes sense to go for Cell Phone Insurance. On the other hand, if you wish to keep your phone for more than 2 years, you would need to pay thrice for insurance. Moreover, at the end of the third year, the worth of your mobile would have already gone down significantly. Thus, it is more profitable not to spend on insurance of your mobile.