Ever drop and shatter the screen on your smartphone? Your precious? Your portal of connectivity to all things social? Ever wear out a camera module from addiction to taking pictures of every meal you make, and every cat you encounter?
Back in the days when I was a retail rep for one of the major wireless carriers, it was always a priority to offer mobile insurance with every new or upgraded phone. You know the drill, an extra $7-10 per-month would provide the peace of mind should the unthinkable happen to that mini-computer you just bought. Yes, there was incentive to sell the feature, but by-and-large, the service works with little undue drama should the unthinkable happen, and coverage was immediate.
More than a few times, a customer would reject the offer, and not get across the parking lot before dropping their brand-new flagship on the pavement, effectively destroying the display or causing some other unseen damage. With tears in their eyes, some would beg for an accommodation, an exchange , or a retroactive addition of coverage. Tears would often turn to rage when some customers realized the true cost to replace a broken device (a sad byproduct of subsidized contracts).
Such stories made mobile insurance a compelling offer, but does it really offer the best value for the money? If you crack a screen or need a new battery, might going to a local shop for a repair be a better option? The common concern about going to an onsite repair shop is use of quality replacement components. After all, if you found your smartphone to be suffering from a failing battery, you are not keen on the idea of a replacement unit acquired in a volume close-out discount from the Galaxy Note 7 assembly plant. Ultimately, there is no definitive solution for everyone, but for the majority of consumers out there, the answers may surprise you
The pros and cons of mobile insurance
Mobile device insurance, like any other, is the type of service you would rather have, and not need, versus need and not have. That is the whole point of insurance in the first place. In that light, mobile insurance, as provided through carriers and a few third-party companies, offers peace-of-mind and convenience. It is the type of service to sign up for, and forget about it, until you need it. When you do need it though, the process is usually as simple as a phone call or making a claim online. Such insurance services also tend to be able to replace the newer devices soonest.
That convenience comes at a cost, however. On average, most programs cost $10 per-month. If nothing breaks, that is $120 spent over a year with no discernable return. What if something does break? Well insurance replacement units are often supplied very quickly, often the next day. However, in addition to monthly premium payments, there is a deductible. Using AT&T’s published schedule, depending on the type of device you have, that deductible can be as little as $12 (for a feature phone or hotspot), or as high as $299 (for a 256GB iPhone 7 Plus). Verizon’s plan has a deductible for the same iPhone at $199. Also, insurance is not generally available for devices that are not sold by the carrier.
The pros and cons of a repair shop
Taking your phone to a third-party repair outfit is not unlike taking your car to a service shop that is not the dealer you purchased it from. Simple online searches can tell you who the good people are, and who to avoid. Taking that variable out of the picture for the moment, upon browsing through any notable repair service, the immediate advantage is cost.
Three of the more recognizable places to take a device in for a repair are uBreakiFix, CPR Cellphone Repair, and Batteries+Bulbs. Between the three, there are variations on how long their repairs are warranted, but the common denominator is many repairs are completed the same day, some while you wait. Moreover, these repair shops can provide onsite diagnostic assessments to actually determine what is wrong with your device – a handy option in lieu of
That latter is the largest chain, and also has the most price estimates for various repairs published without the need to fill out forms or visit a store. Using the aforementioned iPhone 7 Plus example, and assuming a common issue like a broken screen, a repair at a service location like Batteries+Bulbs would cost about $250, $50 less than the co-pay for insurance through AT&T, but $50 more than through Verizon, not including premiums paid to-date.
Upon any casual browsing of these repair services, the more astute geek will notice phraseology like “top quality parts.” For someone that may seek a service that only uses original manufacturer components, that may pose an obstacle. However, national franchised outfits have no interest in using cheap components only to lose that savings through ongoing warranty repairs down the road. Where that concern turns into a benefit however, is that those who keep their devices for more than a year or two. Also, newer devices are not always eligible for repair due to parts availability. Finally, depending on where you live, there may not be a repair location within a reasonable distance.
On the following pages, I went in-depth, comparing multiple options, across different generations of a few popular devices, and see how your money is spent – whether it is money well-spent is up to you.
