Is Mobile Insurance Really Worth It?

Mobile insurance can save you money. Purchase a plan based on the cost of the phone, your ability to pay for repairs and the probability of accidental damage. (158)

Smartphones are essential devices today, serving work and entertainment purposes. Flagship phones offer premium features, but in the event of damage, repair costs are high as well. Usually, phone damage costs are 20-30% of its price tag. 

So, if your phone costs Rs.25,000 and the repair costs are about 20% of its price, you would have to shell out Rs.5,000 out of pocket. 

To avoid such high expense, you can purchase a mobile insurance plan and carry your device wherever you go worry-free. Is mobile insurance really worth it? Read on to know.

Know the benefits of having a mobile insurance plan

Top benefits

Here are the main features you get with a mobile insurance policy:

• Damage due to accidents
• Damage to phone’s screen
• Damage due to water spills

Electrical and mechanical breakdown normally forms a part of your phone’s regular warranty. If 

you desire coverage for that, it is advisable to take an extended warranty plan.

Repair options

In case your phone gets damaged, you generally get the benefit of having the repairs done at an authorized service centre. Alternatively, you may be able to get your phone repaired at your preferred service centre if your insurer permits it. 

Some mobile insurance providers offer pick up and drop services, helping you save on time and avoid queues. Here, the device is picked up at your doorstep and returned within the agreed timeline. 

Additional benefits

Here are some features that may be bundled into your mobile insurance or may be offered as add-ons.

• Entertainment subscription packs free of charge 
• Antivirus and malware protection
• Temporary smartphone replacement
• Coverage around the world

Learn about the costs involved in buying a policy

An important part of purchasing a mobile insurance policy is picking the right insurer. This is because you want to get maximum coverage at the most affordable price. 

It is key that you do not look for the cheapest policy. Judge the price of the policy with respect to the sum insured. Insurance companies will reimburse repair costs only up to the sum insured. Some insurers offer 100% of the invoice value as reimbursement.

Similarly, when assessing the cost of your mobile insurance, make note of how many times you can make claims during the year. With some insurers, there is a limit.

Here are some figures that indicate the cost of mobile phone insurance policies, as of November 2022.

• Sum insured of Rs.16,000 – Rs.1,200 + GST for 6 months
• Sum insured of Rs.6,600 – Rs.479 + GST for 6 months
• Handset price of Rs.6,000 to Rs.10,000 – Rs.1,212 + GST for 12 months
• Handset price of Rs.12,001 to Rs.20,000 – Rs.2,137 + GST for 12 months

You should also look for any deductibles applicable, that is, whether you want to bear a percentage of the cost of repairs.

Assess your risks and make a decision

Whether you should purchase a mobile insurance plan or not depends on the cost of your phone and where and how you use it. 

Do you own a very expensive phone that serves your professional or personal needs? Does your job increase the possibility of accidental damage? Do you tend to drop your phone often or have a toddler at home who does so? 

If you identify with any of these scenarios, then it can be a good idea to take a mobile insurance plan. Doing so can save you a fortune! However, if you have a budget phone, don’t frequent risky environments, and can bear repair costs, you may want to skip insurance. 

Now that you know what to consider when securing your phone, make the right decision. Shop with the best brands to enjoy first-rate mobile insurance services!