Is phone insurance worth it?

For most people, no. Premiums plus the service deductible often meet or exceed the cost of the repair you'd occasionally need, so the expected value is negative. It's worth it mainly if you damage phones often and the deductible is low.

Does my home or tenant insurance cover my phone?

Often yes — personal-property coverage can extend to a damaged or stolen phone, subject to your deductible, and some insurers offer an electronics rider. Check your policy before buying a separate plan.

Does my credit card cover a cracked screen?

Many cards include purchase protection covering theft or damage for a few months after purchase when you pay with the card. It won't cover a break a year later, but it helps early on.

AppleCare vs carrier insurance — which is better?

It depends on the deductible, whether accidental damage is covered, and the claims experience. Compare the per-claim deductible and coverage scope rather than the monthly price alone.

How do I self-insure my phone?

Use a good case, rely on any home/tenant and card coverage you already have, and set aside the monthly premium you'd have paid. Over the device's life that fund typically covers the rare repair.

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

Phone and device protection is sold at the moment of purchase, when a $1,200 phone feels too precious to leave unprotected. But the economics are stacked against you: you pay every month whether or not anything happens, and when something does, you pay a deductible on top. Run the expected-value math with the calculator below and it's usually negative.

The total-cost-of-ownership math

	Amount
Monthly protection plan	~$12–$18/mo
Over a 2-year device life	~$290–$430
Service deductible per claim (screen/damage)	~$50–$250
Typical out-of-warranty screen repair	~$150–$350

Add the premiums and the deductible and you're often at or above what an out-of-pocket repair would have cost — for a repair many people never need. The plan wins on average, which is why it's offered so eagerly.

You may already have coverage

Home / tenant insurance — your personal-property coverage can extend to a lost or damaged phone (subject to your deductible), and some insurers offer a rider for portable electronics. See tenant insurance.
Credit-card purchase protection — many cards cover theft or damage for 90–180 days after purchase when you pay with the card.
Manufacturer warranty — covers defects (though not accidental damage) for the first year.

Check these before signing up for a monthly plan you may not need.

Carrier vs manufacturer vs third-party

Manufacturer plans (AppleCare-style), carrier plans, and third-party protection differ on deductible, accidental-damage coverage, and claims experience. If you decide you need coverage, compare the deductible and whether accidental damage is included — that's where the real cost hides.

When it might make sense

You break or lose phones regularly (some people genuinely do).
The plan has a low deductible and includes accidental damage.
You have no home/tenant coverage or card protection to fall back on.

Otherwise, a good case and a small self-insurance habit beat a monthly plan.

Do this instead

Check your tenant/home policy and credit-card benefits first.
Buy a good case and screen protector — cheap risk reduction.
Self-insure — set aside the monthly premium; it covers the occasional repair.
Model the trade-off with the Deductible Optimizer.

Run the expected-value math

Defaults are educational assumptions (or sourced industry framing) — change every field. EV = P(claim) × E[payout] − annual premium.

Annual premium

Chance of a claim this year

Expected payout if you claim

Buyer expected value

-$102

Negative = you pay more than you get back in expectation

Implied recovery of premium

29.2%

E[payout] $42 / premium

Illustrative industry loss-ratio framing: 35.0% (content constant — not your personal odds).

Robert says: under these assumptions, expected value is about −$102/yr (you pay more than you get back in expectation). Change the odds if you have better data.

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.

Frequently asked questions

Is phone insurance worth it?: For most people, no. Premiums plus the service deductible often meet or exceed the cost of the repair you'd occasionally need, so the expected value is negative. It's worth it mainly if you damage phones often and the deductible is low.
Does my home or tenant insurance cover my phone?: Often yes — personal-property coverage can extend to a damaged or stolen phone, subject to your deductible, and some insurers offer an electronics rider. Check your policy before buying a separate plan.
Does my credit card cover a cracked screen?: Many cards include purchase protection covering theft or damage for a few months after purchase when you pay with the card. It won't cover a break a year later, but it helps early on.
AppleCare vs carrier insurance — which is better?: It depends on the deductible, whether accidental damage is covered, and the claims experience. Compare the per-claim deductible and coverage scope rather than the monthly price alone.
How do I self-insure my phone?: Use a good case, rely on any home/tenant and card coverage you already have, and set aside the monthly premium you'd have paid. Over the device's life that fund typically covers the rare repair.

Sources

Cost figures are typical ranges. Educational only — not financial advice. Run your own numbers with the calculator below.

Educational only — not insurance advice, and no products are sold here. Robert is a mascot, not a licensed advisor. See our disclaimer.

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