Mobile Phone Insurance vs. Mobile Phone Warranty: What’s the Difference?

Date Aug 19, 2020
Blog category Insurance
Blog category Mobile Phone
By Staff Writer

Picture this: You’ve just shelled out the cash for a brand new phone, ready to take advantage of all its new features and powerful hardware. The seller informs you about your phone’s warranty, but at the same time, someone might just also offer you insurance to cover your device. What gives? Aren’t they the same thing? Not exactly. There’s a difference between the phone warranty that usually comes with your device and the phone insurance that you add on as a separate purchase. Let’s look further into the differences between the two...

Mobile phone warranty

Your phone warranty is essentially the manufacturer’s promise that they’ll tend to any manufacturing problems on your device, should they occur in a set period of time. That time period is often limited, generally covering a year or so before it becomes void; although, some manufacturers provide the option of extending your warranty.

Warranties entitle you to free repairs for any manufacturing defects. This could range from hardware problems (i.e. the device not turning on) to software problems like slow interfaces or worse, overheating, on your device. You usually don’t have to worry about paying for labor and parts used to get your device back to good working condition.

However, a phone warranty does not cover accidental damage, loss, or even electronic or mechanical failures that occur past the given time period. Installing third-party add-ons or software can also void the warranty on your phone. Even if you extend your warranty, they still would not cover you for these things. For this, you will need phone insurance.

Mobile phone insurance

Relying on your device’s warranty for cover normally doesn’t get you very far. Phone insurance, on the other hand, has wider coverage depending on the price point. You can now account for accidental damage like drops, as well as accidental loss or even theft.

Additional premiums can also help with mechanical and electronic failures long after your phone warranty has expired. They can also cover damages to your screen or any damages caused by liquids. In fact, it’s even possible to get a replacement phone in the event of total loss from your policy, if your claim is approved by your insurer.

Should I shell out for phone insurance?

If you have a history of lost phones or a habit of dropping your device on hard surfaces, then phone insurance can surely help you deal with repairs to your device. If you’re pretty careful with how you use your device, or you’re not the type to experiment with apps and software often, then you might just be able to go with an extended warranty.

Additionally, it might not be worth it if you’re the type who replaces their device every year, or if you usually stick with entry-level or mid-range devices that you’re comfortable with replacing if it gets compromised. If that’s the case, then your phone warranty could be enough cover.

Regardless of which option you choose, it pays to have some form of cover for your mobile device nowadays. Financial transactions, social connectivity, and even work can all be conducted on the go at the tip of our fingers, but at the same time, it also opens us to a lot more risk. So, know the details of your warranty or extend your cover with phone insurance. The peace of mind it brings is definitely worth it in the long run.