You don’t need to buy insurance when you buy your gadget at first. It is tempting to say yes to the sales agent after telling you the amazing benefits of having gadget insurance. Imagine, you never have to worry if someone steals your phone. The insurance will take care of that. But as with all things, there are downsides to these benefits. It usually comes with a heavy price tag that you might not be willing to pay for until your contract expires in two years.
Gadget insurance covers a lot of situations. You can have your phone, laptop, and computer replaced easily when you have gadget insurance. It usually covers theft, robbery, loss, and damage. However, it’s important to review the terms and conditions of your policy because you might think you’re covered for theft, but you are not. Like life and health insurance, gadget insurance policies come with many scopes but a lot of limitations, too.
How Much Does Gadget Insurance Cost?
The answer to this depends on the cost of the gadget. Some can go for as low as $8 for an iPhone, while others will charge $13 a month to include theft, robbery, and loss. You can also pay it a one-time fee of $200, but who would want to do that?
You need to clarify the scope of the coverage. A lot of buyers don’t ask important questions. They sign the papers because they were too excited to use their new phones or laptops. This is a rookie mistake that will cost you hundreds of dollars’ worth of repairs in the end. And yes, although you can find an affordable PC repair shop, the stress of thinking about the repair cost will eventually make you want to wish you paid for the insurance instead.
When Do You Need an Insurance?
According to the latest figures, only about 35% to 40% of phone and laptop owners have an insurance gadget. So, at least 50% to 65% of consumers still don’t believe an insurance coverage acts as protection for their gadgets. For them, it’s an extra cost that they should not have to pay. After all, if the phone manufacturer is sure that they made and assembled the phone with high-quality materials, you don’t have to worry about it breaking down.
But if you’re investing in new computers and phones for your small business, insurance coverage might be a smart thing to do. The last thing any business owner wants to happen is to have to deal with a computer or printer issue while the company is in the middle of a big project. No task or responsibility should be delayed because of a faulty printer.
Businesses can get better deals from gadget insurance companies if you are buying policies for many computers. Make sure to negotiate for a deal wherein you won’t have to pay for each device. Pick bundle options so you can save more money, and not have to worry about the maintenance and repair of your devices.
Do You Need It for Personal Use?
So, when should you get insurance for personal use? If you are known to be careful with your things (your smartphone has nary a scratch on it), you probably don’t need to pay that extra $13 a month. You’ll end up lining the pockets of these insurance companies.
However, if you are a bit on the clumsy side, you might want to get one, especially if your gadgets are expensive, you bring it with you all the time, and you own several devices. For the last one, it makes more sense for you to get insurance that bundles all your devices—phone, laptop, etc. You also need gadget insurance if you have a history of losing your gadget or having it stolen.
Remember that a malfunctioning gadget should not initially fall under your insurance coverage. That might still be under the warranty of the manufacturer, so make sure to reach out. You can also opt for an extended warranty rather than buy an insurance policy for every gadget you have.
Make sure to study your options before you take the plunge of buying insurance for your gadgets. Whether you’re using the devices personally or for the office, it’s nice to have a bit of protection from external factors. While it’s easy to fall into the trap set by salespeople, you need to stick with what you need, how much you can afford, and what will bring value to you most.
Meta title: Is It Worth It to Get Insurance for Your Gadgets?
Meta desc: Do you still need to pay for gadget insurance? Is it worth it to shell out around $10 a month for each of your gadgets? How much is too much in maintaining your gadgets? Read more about it here.