Cell phone insurance – is it worth it?

When you buy a new cell phone, you can often take out cell phone insurance at the same time. However, what seems sensible at first glance is often deceptive.

What cell phone insurance covers

Taking out insurance when you buy a cell phone or smartphone may seem easy, convenient and safe. But what does such insurance actually cover? The details of the coverage are set out in the contract. Most cell phone provider insurance policies regularly include the following services:

• Insurance often offers financial protection against falls that can damage the phone. A broken display can thus be part of the contract and the insurance will cover the cost in the event of damage.

• In addition, cell phone insurance covers damage caused by moisture or power surges.

• Damage caused by a defective device can also be covered by insurance.

• The insurance can also apply if your cell phone or smartphone is damaged or destroyed by vandalism.

• Your device is often only protected against theft by a special tariff. As a rule, you only receive this at an extra charge.

Why cell phone insurance is often not worthwhile

In most cases, cell phone insurance is unnecessary and therefore not generally recommended.

• In the event of damage, the insurance pays the value of the cell phone and not the original price. This drops rapidly over time and long contract durations of several months to years ensure that the amount paid out in the event of damage is always lower.

• You don’t have to use insurance to cover damages caused by a faulty device. Both new and refurbished devices are subject to a statutory warranty.

• If you already have home contents insurance, damage caused by power surges is often already covered. Damage caused by fire or vandalism and theft within your own four walls are also already insured in this way.

• Personal liability insurance also covers damage to your device. However, this only applies if someone else has accidentally dropped your device.

• Neither cell phone, home contents nor liability insurance will cover you if you lose your smartphone or damage it yourself. To protect your device, it is usually more worthwhile to invest in a sturdy smartphone case than in cell phone insurance.