Is Phone Insurance Worth It? Your Options Explained

Phone insurance is one of those costs that feels unnecessary right up until the moment you need it. A cracked screen on a flagship iPhone or Samsung Galaxy can cost $200–$400 to repair out of pocket. Theft or loss makes the entire phone a total loss. Whether insurance is worth it depends on the value of your phone, your history of accidents, and which plan you choose — because the options vary significantly in quality and cost.

The most straightforward option for iPhone users is AppleCare+. You pay either monthly ($8–$14 depending on iPhone model) or a one-time upfront fee ($150–$250), and you get two accidental damage incidents per year. Each incident requires a deductible: $29 for a broken screen, $99 for other damage. AppleCare+ also includes Apple's 24/7 technical support by phone and covers battery replacement if the battery holds less than 80% of its original capacity. Adding theft and loss coverage costs a bit more but covers you if the phone is stolen or goes missing. Google Preferred Care for Pixel phones and Samsung Care+ work similarly for their respective devices.

Carrier protection plans are offered by Verizon (Total Equipment Coverage), AT&T (Protect Advantage), and T-Mobile (Protection 360). They cost $15–17 per month and cover cracked screens, theft, loss, and mechanical failure. The catch: deductibles are high. Cracked screen repairs run $29–$99, but theft or loss claims require deductibles of $99–$249 depending on the device. Over time, the monthly premiums add up, and the total cost can approach the value of the phone itself.

Third-party options include SquareTrade (often sold at Costco) and Asurion — the latter is actually the same company that processes claims for most carrier insurance plans. SquareTrade/Allstate plans sold at Costco are often less expensive than carrier plans and provide similar coverage.

One underutilized resource is your credit card. Premium credit cards like Chase Sapphire Preferred, Chase Sapphire Reserve, and American Express Platinum include purchase protection (covers damage or theft for 90–120 days after purchase) and extended warranty coverage. Check your card's benefits guide or call the number on the back of the card to find out what is covered.

A self-insurance approach is worth considering for budget phones: set aside the equivalent of the monthly premium ($15) into a savings account each month. After a year, you have $180 — often enough to cover a screen repair or purchase a budget replacement phone.

Recommendations: AppleCare+ makes sense for iPhones that cost $800 or more, especially if you have a history of accidents. Carrier plans are generally overpriced relative to what they cover. Third-party plans from Costco or SquareTrade offer a better balance of cost and coverage. For phones under $400, self-insurance is often the smarter financial choice.