brokencellphone
What could be worse than dropping your $400 cell phone and watching it smash into half-a-dozen pieces? If you have cell phone insurance then the worst aspect of your ordeal could be the wait-time until a surrogate is delivered. Ah, but if it were that straight forward, I would not be writing this article.

Most cell phone companies use Asurion Corp for customers wishing to cover their phones. There are three major 3rd party administration companies:


Dominick A. Leone

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Dominick A. Leone

Asurion, incorporated in California (Lic#OD63131), currently Administrates coverage for AT&T, Sprint, Verizon, Alltell, T-Mobile, and many other wireless service providers. These wireless companies use different underwriters, e.g. AT&T uses Continental Casualty Company.

Dominick A. Leone
RISKS
If you do not have cell phone insurance then your risk are:
  • Useless equipment and service
  • Price to replace or repair equipment
  • "Loss of use" or "down-time" costs

Dominick A. Leone

Caveats (applies to Asurion):
  • $1500 claim limits (including a $100 accessory limit)
  • 2-claim limit per 12 month period (begins after first loss)
  • Battery and charger only covered if part of loss
  • Claims must be filed within 30 days of loss
  • Replacement phone can be a refurbished unit
Dominick A. Leone
haz general warning The following is not typically covered haz general warning

  • Damage that does not affect the "mechanical or electrical use of the unit"
  • Normal wear-and-tear not covered
  • Cracked displays

Dominick A. Leone
BENEFITS
Peace-of-Mind
Reduction of "down-time" compared to having it repaired
Ability to predict costs on a month-to-month basis
Ease-of-use (contact company by phone or internet)
Can save you up to $1500 if your cell phone is lost or damaged

Dominick A. Leone
COST
Verizon
Separate wireless Extended Warranty Coverage available
$4.99/month (wireless phone protection)
$1.99/month (Extended Warranty)
$5.99 (Total Equipment Coverage)
$35 activation fee

SPRINT
$4.00/month (Equipment Replacement Program)
$4.00/month (Equipment Service & Repair Program)
$7.00/month (Total Equipment Protection)
$36.00 activation fee

Alltell
$5.00/month (ProductGuard)
$7.00/month (PlatinumGuard – high end equipment)
$95 deductible for PlatinumGuard (loss, theft, or physical damage)
$0 in-warranty and $50 out-of-warranty for mechanical/electrical failure
$25 activation fee

T-Mobile
$3.99/month (Group A) $40 deductible

$5.99/month (Group B) $70 deductible
$5.99/month (Group C) $110 deductible
$35 activation fee