Estimated reading time: 10 minutes
Don’t let accidents ruin your day. Discover the importance of cell phone insurance and how it can save you from unexpected costs.
Money Wasted Or Saved With Cell Phone Insurance
Is cell phone insurance a waste of money and who needs it?
Here’s my story about what happened to my cell phone and how things went downhill fast.
Just two months ago, I was so excited to have my new cell phone, a Samsung Galaxy 24; it was awesome.
The first thing I did when I got home was log into Amazon and look for a hard case to protect the phone.
I was trying to save money out-of-pocket by using my gift cards from Swagbucks.
With modern cell phone technology, you would think they would figure something out so cell phones were protected from the average clumsy person dropping them.
Even worse, children get their hands on a cell to play with or toast it for breakfast.
I’m just dreaming of the indestructible cell phone, but we all know that will never happen; nothing seems to last like the good old days.
It’s more about a short life span and getting the customer to fork out more cash because they get so used to having technology at their fingertips.
That seems too easy because accessories make up another chunk of profits for these technology organizations.
Well, there was my second mistake (the first mistake is coming up); a hard case sounds excellent, right?
I’m not sure what I was thinking, as I should have bought a rubber that might absorb some shock if it was dropped.
You can probably figure out where I’m going with this…
Goodbye Cell Phone
I pulled my cell phone out of my pocket to take a picture at work, then put it in my coat pocket so I could continue working.
I turned around, and my phone flew out of my pocket onto the lovely solid floor in Wal-Mart—nothing like a new dropped cell phone smashed to bits staring right back at you.
The second I looked down, I wanted to cry. I broke the screen on my phone; oh great, sigh.
I started to think out loud as I was still in shock, “I broke my cell phone; now what do I do”? It’s that moment when everything comes to a screeching halt in your life.
I know it sounds off the hook, but my cell phone carries more weight than just a phone for work and pleasure.
At least with a dropped cell in water, I would have hoped for some recovery, but I had blown this one out of the water.
My practically brand-new cell phone was on the floor with every rainbow color across the screen.
I don’t even have a picture because my phone was my camera!
Now, I can’t see color; it’s a solid black screen with no life.
So now what?
Importance Of A Cell Phone
I had just switched from Telus and obtained this cell phone by negotiating a three-year contract with Rogers Wireless.
I am very uncomfortable being outside of my home without my cell phone.
This is not because I have some unusual connection to my cell phone, which is far from the justification.
The reason is that I have a 4-year-old child with an illness who is just finishing his first year of school and has suffered from a seizure disorder since the age of 6 months.
With my job, I work on the road and travel to multiple stores around Ontario, which I enjoy.
When I have my cell phone on me, I can relax, knowing that I can be reached at any time if I need to.
I was working across the road from where I bought the cell phone and where the dropping incident occurred, so I went to see if they could help me.
Bad News
As you can see from the picture above, my cell phone looks OK.
The glass didn’t break, which would have been about $100 to fix my phone, but that was not my only problem.
I was told that the LCD under the glass was destroyed and that I was looking at $400 to repair it. Boy, did that make me feel better, not?
I nearly had a heart attack; the value of the cell phone was $600.
After some in-store credits and the contract, I walked out the first time without spending a dime on my phone.
The phone cost $149.00 on a three-year contract, but the in-store credits, some of which ended a half hour after I walked through the door, covered that entire $149.00.
That left me responsible for $450.00 over three years.
My first mistake….a big mistake
Do You Have Cell Phone Insurance?
The associate then asked me if I had purchased cell phone insurance.
Insurance? What cell phone insurance?
She looked at my mobile account, and no insurance was found anywhere.
I do not remember being offered cell phone insurance, although she insisted they offer it to every customer.
It’s possible I said no, but I’m a little clumsy at times, and I know this; I can’t imagine I would have said no!
The $7.99 a month insurance would have replaced my phone, even if it was physical damage, with a $50.00 deductible.
Sounds great now!! There is a lot of good that will do me.
I didn’t know what to do, as I always needed a cell phone.
My only options were to put down a $50.00 deposit for a loaner phone and send my phone away for repair to buy a new cell phone.
I explained why I needed a phone and did not have $50.00.
She suggested that I take some time to think about it and offered me a loaner phone for free for a week, on my word that I would return it.
I was very grateful for her willingness to help me; that is what excellent customer service is all about.
Importance Of A Cell Phone
Being a single working mom of two kids, one of whom has seizures, my phone was not only a necessity, but it became a massive convenience in my life.
I get a lot of email communication for my job, and I do not get too many daily opportunities to get on my computer.
My social media appearance and email activity had diminished in that long week, and I even worried about Mr. CBB because I wasn’t around!!
I felt very out of touch with the world and unable to efficiently organize my work week without my cell phone.
The importance of cell phones in our lives seemed so apparent to me at this time.
I was missing emails that required a quick response and fell behind, as some days I can get 8-10 work-related emails.
I had to make a fast decision, even if it meant breaking my budget and going into my emergency savings account; that is when I saved the money for an emergency.
Device Protection From Rogers Wireless
Rogers offers cell phone insurance called Device Protection, which it actively markets to all customers.
Like any insurance, it’s better to be protected then left with the bill, like me.
Worry-free protection
We offer comprehensive protection for your device. Plus, your first broken phone screen repair is on us!
Fast service
Return to connecting with others and doing what you love quickly and easily.
Enjoy access to most repairs done the same day and replacements for lost or stolen devices as early as the next day!
Affordable pricing
Damaged devices are bad. What they can do to your wallet is worse. Avoid surprises with simple and affordable pricing.
Trustworthy repairs
Your device will be in good hands. Repairs are completed by authorized professionals using the highest quality parts.
My Loaner Phone
So now I have a fundamental phone that does not allow me access to my email, a prolonged online browser, and, I think, the original version of mobile Facebook!
I indeed lost the convenience of my smartphone that week, but I was thankful to be able to make and receive calls.
I called around a few local repair shops to see if I could find a better deal to have my cell phone fixed.
No luck there.
There was no way that I could put $400 back into fixing that cell phone.
I could not afford that.
I had to decide if I would look on Kijiji or eBay to try and find a cheaper cell phone or pay the total price for a brand new one.
My New Cell Phone Insurance
I eventually decided to pay the total price for a brand-new cell phone.
Why did I decide to buy another brand-new cell phone?
First of all, I am tired of spending money on cell phones!
A few years ago, I opted not to have a home phone as I was paying for something I rarely used, so I relied solely on my cell phone.
Now that I know about the $7.99 monthly cell phone insurance fee that would replace my phone for a $50 deductible, I wanted to have that peace of mind option this time….. instead of getting stuck in this situation again.
If I were to buy a used phone from Kijiji or eBay, there would be no insurance or warranty coverage option.
Should You Buy Cell Phone Insurance?
Cell phone insurance may seem like a waste of money for some people, but it’s worth every penny for someone who is as clumsy as me and who needs her cell.
Also, check with your homeowners or auto insurance to see if your policy covers theft, loss, or damage to your cell phone before committing to cell phone insurance.
Please do your homework and protect your cell phone; it’s worth it.
If not, well, then I guess you might have to suck up the costs like I have to.
Now I’m stuck with $450.00 of the cost of this broken, useless cell phone throughout my 3-year contract and just spent over $200 on a new one!
That’s more than I would have had to pay if I had just had that darn cell phone insurance.
If this ever happens again, when someone asks me if I have cell phone insurance, I will proudly say, ‘You bet I do!’.
Discussion: Do you have cell phone insurance?
Post Contribution By: Katrina regularly contributes to Canadian Budget Binder and is as passionate about personal finance as gardening.
I don’t on my cellphone as mine is pretty basic and pay-as-you-go since I don’t really make calls on it, used mostly for texting (stay in touch with my son) and sometimes accessing email/Facebook. But when my son got an iPhone 5, knowing how he is with phones, I decided he should have the insurance, and we’ll see as time goes on if we need to keep it for the entire length of the contract or not (I pay 1/3 of the monthly cost for his phone, he pays the rest).
Wow, sorry to hear about your experience. We bought insurance on my wife’s iPhone 5, because it is our business phone and what we depend on. The problem though is they charge $10.99/month and the deductible is $200. At least we can write some of that off with it being for our business. When we upgrade mine next month I’ll be passing as it’s just too much money. I’ll be keeping my old one in the case something like this happens & can just reactivate it.
John did they give you an explanation as to why the insurance price and deductible is so much more for the iphone?
I know I have a iphone and my phone is cracked but still able to use when I renew my contract next year I will definately be getting the insurance! Hubby bought it for my birthday but didn’t think it was worth getting insurance he wished he had now!
Well at least it can still serve it’s purpose for you. I didn’t mention but I should have that the iphone insurance is $9.99-$10.99 a month with a $200 deductible, I’m not quite sure why that is..I’ve never owned an iphone
Although, I choose not to have insurance coverage I can see where considering insurance for some people would be benificial. Thanks for sharing your experience It will give me something to consider if my situation should change!
i never throw away my old phones in case something like this happens.
I always back up my smartphone on weekly basis by using an app and cloud service.
$7.50/month is way too much for insurance…- you are paying $90/year…you can buy some used smart phones on Kijiji for about $200 – nothing fancy though.
It does seem like a lot but as my contract lapses I will look into what my contract buyout price is, if it is less than what I would pay to continue my insurance I will cut the insurance off. I need the piece of mind that I could replace my phone if needed….again….
Have you looked into the coverage credit cards offer? Does a cell phone qualify for the credit card coverage? I know discover card adds an additional year of warranty to electronics. I’m not sure how much that covers, but it would be useful for me to investigate.
That happened when we bought our Smart TV… if we paid by credit card they would cover the first year of a warranty but if the product came with a 2 year warranty that didn’t make a bleedin difference. That’s a good point though that you make as many people might not be aware of that. Cheers
would that not only apply if the purchase was made with that credit card? Looks like I have some investigating to do….
I used to have cell phone insurance, but then I took it off because I never used it. They were getting $7 a month from me for about 5 years. I decided to take it off but I am pretty careful with my phone. I also have an emergency fund that can handle a new phone. Most insurance companies don’t give you a new phone, they give you a refurbished phone, so make sure to check the insurance contract.
It certainly isn’t for everyone, I figure it’s a good investment for me as I tend to drop it no matter how careful I try to be. Rogers made it sound like they would have given me a new phone, I will have to look more into this. I am good with paying the insurance right now, since it can be removed any time from my bill I may remove it once I have had the phone for a good portion of my contract as the buy out price on my contract may be less than what I would be paying for the insurance.
Here’s one for you. I will always remember the day I bought my first cell phone, in 2004. Why will I remember it, because an hour later I set it down on a counter while working to assemble something, and knocked it off and into the dog’s water bowl.
Oh my, an hour later? Did it work after it dried out?
Nope. It was well and truly fried.
Earlier this year I smashed the screen on my phone. I didn’t have insurance and no warranty, even though that probably wouldn’t have mattered. I looked up a video on how to repair the screen and was surprised that I was actually able to fix it. The parts cost me about $50 or so but I didn’t have to buy a new phone or enter into a new contract. I was pleasantly surprised.
You were lucky! The part to fix my phone was the same price as what I paid for the new one,and the labour brought the price up to $400.
I have mobile phone insurance as an extra feature on my bank account. I don’t know if it covers everything it should though and after hearing your story I’m certainly going to find out. Thanks for sharing Katrina.
My first cell phone was drowned in lake water! Luckily it was a really cheap one.
Our daughter has a used blackberry that was given to her by a friend at work. The boss uses one too so it made sense for her to have one. I think the contract runs out in the next month or so, not sure… But I will make sure she looks into this stuff. The only reason she even has a land line right now is that she is in a controlled entry apt building and needs the land line to buzz friends in. Our younger son has a very basic pay as you go cell phone that we take with us for appointments out of town. He got that a few years ago as aback up when we had issues with the land line here. Thanks for another great article Katrina!!!!!!
I’ve never had any phone insurance before but in the past I didn’t have a smart phone either I just had a regular old cell phone and if I happened to ruin it I could usually just pull the cell chip out of it and put it in any phone I have. Now that I have a smart phone it’s a bit different. When it comes down to it I’m just going to keep my old phone when I switch to a new one that way I have something to go back on. As far as the insurance goes it probably wouldn’t hurt to get it since my company pays for it anyways.
Christine I know many people who can use their cell phones for buzzing people into their buildings, she should look into that too 🙂
I guess I’ve never had a phone worth insuring, but if I ever had an expensive phone I would certainly consider it. We also don’t have a home phone, so I’d be in trouble without one.
Instead of insurance, I bought a Lifeproof case. It’s water, shock, dust, mud, proof.
I’ve always had cell phone insurance with my previous phones. I have had a cell phone for over 12 years and this is the first year that I have decided not to carry cell phone insurance. I have a smartphone, but I’ve downgraded from my iPhone, so I figure if ever I need a new phone I can purchase one. Besides, I have probably used my insurance twice in all 12 years.
I didn’t even know it existed! I don’t use mine enough or have a good enough one to bother.
I don’t have cell phone insurance. I do like to buy my phone outright, but generally, I’m pretty good with taking care of my stuff, so it lasts.
My husband’s phone broke while we were on vacation. We didn’t have insurance so we had to pay $200+ for a brand new “dumb” phone. We both added insurance to our plan after that.
I can’t believe this is your subject today, because I lost my cell phone on Saturday. Did I have cell phone insurance? No, but I wish that I did. My phone was an Iphone 4 and I got it 2 years ago when my phone company, Sprint, first started to carry iphones. When I got the phone they didn’t offer insurance on it. I probably could have gone to Apple at that point and gotten their insurance- Applecare- but I don’t really know if that covers losing your phone. In looking at my phone bill yesterday I see my daughter has insurance on her iphone so Sprint must now have such insurance.
Although I’m saying I lost my phone, ultimately it was really stolen. I was in the dressing room in Kohls when my husband called me. I put the phone on the shelf with the speaker on to continue getting changed. When I left the dressing room I also left the phone. The store was crowded with 2 people waiting for a dressing room. The nice looking lady with a young child was who went into my stall and I would guess grabbed my phone. Within 10 minutes I went back looking for the phone but it was gone. Their was a dressing room attendant right there and no one turned it in to her.
Within half an hour I was at home gpsing my phone which was turned off. It had a full charge so the culprit with my phone turned it off. I had the apple app Find My Phone on it so I set a lock on my phone, and set it to make a loud sound when powered up. Also it will display a message saying I am lost call _________ and a tracing mechanism will begin. Problem is as far as I can tell the phone has not been powered up- or the tracing doesn’t work.
So, now what? A new comparable phone costs a few hundred dollars. I have an upgrade available from Sprint on July 1 with a new 2 year contract and I can get a new phone for free. So I’m looking today to buy a charger for an old phone and will use that until July 1.
I use my phone for many things so I’ll miss it for the next 2 weeks. I had to dig out my old digital camera to use for my grandson’s graduation this week. When we drove to the beach yesterday I missed my license plate game app. I never put my calories in my calorie counting app the last 2 days so I’ll have to start doing that online. Luckily I have my phone backed up on iCloud so I can restore everthing on my new phone. Just waiting now for July 1.
Hi Karen,
Wow, what a story and it’s a shame that people can be so greedy as to not return it. Of course they knew you were going to come back the moment you knew it was missing. It was also in a spot not just found random on the grass. I can’t stand people like that. What advice would you give to others now that you’ve been through this experience?
I would make sure to have insurance as long as the fee for it is reasonable compared to the deductible. If you have a smart phone put some apps on it to lock, erase and track your phone. Even if you never get it back you can stop someone else from profiting from your loss. Make sure you back up your phone too. I would really be upset if I knew I had to re-do everything on my phone.
Those are some good points you bring up and that anyone who reads this post would certainly benefit from, so thanks. I don’t own a cell phone so I’m learning along the way and it’s great to get feedback from those that experience situations such as you have. Thanks for sharing your input Karen! Mr.CBB