Everyone who purchases a new cell phone, smartphone, or iPhone is faced with a decision. Do they purchase cell phone insurance? The carriers themselves offer cell phone insurance plans on a monthly basis for a few dollars a month, but there are also some 3rd party providers that offer their services for an upfront fee. Why would someone choose to go with a third party insurance versus the typical insurance offered by the carriers? Although they have an upfront cost, 3rd party companies typically cost less in the long run through reduced claims fees and usually give you more value for your dollar.
Some 3rd party companies offer a Device Buy Back Program. They will buy back your new phone, smartphone, iPhone, or tablet at up to 50% of its full retail value. Most people purchase their new phone at a subsidized cost so when they can sell it back for 50% of its retail value, they come out on top. Even if a phone is sold back during the 2nd year of its membership, it can be sold back at 25% of its retail value. An average smartphone retail cost is $550 and at 25%, the buy back price is $137.50 which is more than the smartphone protection plan costs. This is a huge benefit. This puts the 3rd cell phone insurance in to a no risk situation. Even if you never use the insurance for a new device, you can sell your phone back and get all of your money back to apply towards a new phone purchase.
Some 3rd party insurance companies offer software to Lock, Locate, and Wipe your device in case you ever lose it or have it stolen. Picture this, you've just lost your phone, with a traditional cell phone insurance company you would have to call and make a claim. But with this security option, you can LOCK your phone so nobody can get in to it. Then try to LOCATE the phone through GPS, and if that doesn't work, use the WIPE function to erase all data on the device and make sure your personal data is not compromised. With all of the information people keep on their phones these days, this program definitely gives you peace of mind that your information is safe and secure.
One 3rd party insurance provider also provides credit restoration should your identity ever be stolen. With their ID Rescue program, they will put you in contact with a restoration specialist to restore your credit to pre-theft status.
When you take in to consideration all of the extra programs and features you get with 3rd party insurance companies, you'll never use the carrier provided insurance option again. Here is a look at some sample price plans. Just do your due diligence with other companies to make sure that you are getting the most for your dollar.
Luminous Communications is a cellular consulting agency that helps customers choose the right wireless devices that fits their needs. We generally work solely with businesses to help them manage their wireless technologies.