Mobile Phone Insurance – Is it a good deal?
When talking on the subject of insurance I will probably be the first to say the many forms of insurance are important for some people. Particularly insurance like health insurance, Income protection and Trauma Cover are some I make sure i’m covered with (even on a students budget). But im no Financial Planner so naturally you shouldn’t take out insurance just because I have some.
Shortly im going to be in the Market for a Mobile phone as my current phone (non-Iphone) has decided to stop working again temporarily. So im back to using my 3 year old Iphone that was previously completely submerged in water but somehow still works? Now thats a quality phone! Doubtlessly this faulty phone will mirraculously work again once I take it back to the shop to be repaired. But that is a different matter!
Anyway when I do happen to upgrade to the new Iphone one form of insurance that I will not be taking out is insurance for my mobile phone as I am not entirely convinced its value for money.
Poor value for my Mobile Phone Insurance
Now I have canceled the insurance on my phone plan and allow me to explain why. Eighteen months ago when I haphazardly submerged my old Iphone in a pool of water I naturally was going to claim on my insurance. After all I had been paying the $8 a month under the impression it would provide me with a new phone. Unfortunately for me the excess on the insurance was along the line of $350. Ouch…$350!
Since I was out of contract for that phone I opted to just sign up to a new contract rather than make a claim on the insurance at a cost greater than what I could buy a equivalent second hand phone for on Ebay. Naturally this time without the $8 a month insurance!
COST/BENEFIT of the Mobile Insurance I had
So lets just look at this from another perspective.
$8 a Month over 24 month contract = $192
Excess on Insurance = $350
Total = $542
Ok, just googled “buy Iphones” and saw that people are selling new ones for around $600-700. So you tell me is this value for money?