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It's a question many people ask themselves when they first buy a new smartphone - should I consider insuring my device?
It's a lot of money up front when you purchase a new device and with activation fees, taxes, a new phone case and other add-ons, smartphone insurance can suddenly move to the back burner of your top priorities. However, putting off smartphone insurance could be a critical mistake in the long run.
The majority of smartphone contracts last two years and with new apps and features on your device, the need to have your phone on you all the time is more important. With your phone constantly moving in and out of your pocket, the wear-and-tear factor heightens.
A lot of people can make it through their two-year contract without significantly damaging their smartphone, but on the other hand, billions of dollars have been spent on replaced devices since they were popularized in the mid-to-late 2000s, CNBC News reported.
Larger devices mean great risks
The biggest news in the smartphone industry in 2014 was the iPhone 6, iPhone 6 Plus and the Galaxy Note 4. All of these devices upped their screen size, which seems to be the latest trend in the smartphone industry. With the iPhone 6 Plus featuring a whopping 5.5-inch screen, phones are slowly turning into the size of tablets. Additionally, the larger the devices, the harder it is to hold on to and keep safe.
Some insurance plans cover damaged devices, but with larger smartphones taking over, consumers should consider investing in personal insurance that covers accidental damage as well. While smartphones are growing into the size, the price of these devices is not getting any cheaper.
Opting for phones with more storage space
In a recent report from the camera app company IceCream, the photo software firm discovered 8 percent of smartphone users run out of space on their phone every single day and 22 percent run out of storage by the end of the month. With the increased amount of apps going on everyone's phones, consumers are shifting toward higher gigabyte model devices.
Because of the price increase, you should strongly consider what personal insurance has to offer. Replacing an iPhone 6 Plus in full could cost roughly $800 with activation fees and taxes, according to Apple's online store. In a report from Gotta Be Mobile, Apple could charge users $80 or more for battery issues and if the screen breaks, it could cost a minimum $270 for an iPhone 6. Warranty replacement costs are uncertain, but having your phone protected gives you the exact amount for each deductible and the rate per-year for your device.
With insurance willing to cover lost, damaged or even stolen smartphones, the long-term investment pays off much faster than having to replace a device all together. Why take unnecessary risks when personal insurance can give you the piece of mind that comes with a protected smartphone?