Phone and device insurance: convenience at a steep price
For most people, device insurance and monthly protection plans lose money over the life of the device. Check what you already have first.
The verdict: for most people, device insurance and monthly protection plans lose money over the life of the device.
Why
Monthly premiums plus a service deductible often approach the cost of the repair or a replacement you'd rarely need — and you may already have coverage through a home/tenant policy (personal property, sometimes with a rider) or a credit card's purchase protection. The expected value is usually negative once you account for the deductible.
Do this instead
Check your tenant/home policy and card benefits first; a good case and a small self-insurance habit beat a monthly plan for most users. Insure the device only if you're unusually hard on phones and the plan's deductible is low.
Run the expected-value math
Defaults are educational assumptions (or sourced industry framing) — change every field. EV = P(claim) × E[payout] − annual premium.
-$102
Negative = you pay more than you get back in expectation
29.2%
E[payout] $42 / premium
Illustrative industry loss-ratio framing: 35.0% (content constant — not your personal odds).
Robert noticed…
- Every parameter is editable. Defaults on teardown pages are sourced or marked ASSUMPTION in content — never treat them as personal odds.
- Implied expected recovery is under 40% of premium — common for add-on products with low claim rates and high loading.
Educational only — not insurance advice, and no products are sold here. Robert is a mascot, not a licensed advisor. See our disclaimer.