Insure your iPhone or not? 2 arguments for and 3 against
You have ordered a brand new iPhone 12 and are now faced with the choice: insure or not? In this article we list the pros and cons of telephone insurance and we conclude with an advice. This is why you should (not) insure an iPhone.
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Contents
Why it is / is not wise to insure your iPhone
To get straight to the point: for most people it is probably not necessary to insure their iPhone. Most insurance policies are expensive, use non-transparent conditions, which means that you will not always be paid the full damage and usually you have to deal with a considerable deductible.
That said, there are of course situations where it makes sense to purchase smartphone insurance. We particularly like AppleCare +, Apple’s own insurance policy. This is reasonably priced and covers the most common damage.
In this article, we will focus on the possible reasons for taking out iPhone insurance. Hopefully you can make an informed choice based on this.
2 reasons to insure your iPhone
1. Security
The first argument is obvious: insurance is to cover risk. Maybe you use your iPhone for years without giving up on the device, but maybe you let the device slip out of your hands after a week and you can’t get it to work anymore. Nobody knows what the future will bring and you have insurance for that.
2. Duration
We also encounter the second argument more often in the insurance world: only insure risks when you cannot or do not want to bear them. In other words, if your new iPhone tomorrow total loss can you get a replacement at home? Or will this be difficult?
Apart from the fact that it might not be wise to have an expensive iPhone in that case, you are often better off with insurance in these situations. Usually they charge a deductible, but compensate for any additional damage.
A practical example clarifies the matter. Suppose the screen of your iPhone 12 mini is broken and replacement costs 250 euros. The insurer applies a deductible of 50 euros. You pay this amount out of your own pocket, after which the insurer will reimburse your repair. In this situation you ‘win’ 200 euros compared to the situation in which you would not have iPhone insurance.
3 reasons not to insure your iPhone
Most telephone insurance policies collect their premium monthly and the amount of this amount depends on the device value. For example, if you insure your iPhone 12 through a private party, your monthly premium is between 10 and 20 euros per month.
You can also increase this amount by adding theft cover, for example. Over a period of two years, you can therefore easily pay 240 to 480 euros for your iPhone insurance. That is a lot of money if you do not claim compensation.
2. Conditions
Do you want to insure your iPhone? Then read carefully about the conditions. Many insurers use daily values when paying out damage. That usually works out against you.
You will not get the purchase value (as currently 912.10 euros for an iPhone 12) back, but how much the device is worth at that time. This means that your device is only worth 60 percent of the purchase price 1 year after purchase at some insurers.
Also pay close attention to the deductible applied. When an insurance policy uses a high deductible, for example 100 euros, it makes no sense to claim this for small repairs. In that situation you actually pay double, because you still pay for the costs of your repair.
3. Double insured?
The Dutch love insurance. Do you currently already have extensive home contents insurance? Then there is a chance that your phone is already covered, even if the device is damaged outdoors.
And if you currently have a basic home contents insurance, it may still be cheaper to expand this package. In most cases, an all-risk home insurance policy is cheaper than a separate iPhone insurance. So please do not hesitate to contact your current home contents insurer for the conditions.
These providers are there
You can insure your iPhone with various parties, such as your provider. When ordering / renewing your subscription, people will almost certainly ask if you want to use this. Providers usually work together with specialized insurance companies such as Assurant and Chubb.
As soon as your device breaks down, it is best to contact them directly. The basic package usually reimburses fall, impact and water damage. For theft coverage you probably have to take out the more extensive (more expensive) package.
There are also many parties to insure your iPhone afterwards, for example because you have a SIM only subscription and have bought your device yourself. Well-known smartphone insurers are SmartPhonePolis, nowinsure and simplesurance. You can also insure an iPhone with Centraal Beheer.
Conclusion: Insuring the iPhone is probably not necessary
It is always difficult to give general advice, but for most people it is not necessary to insure their iPhone separately. An average smartphone insurance policy costs between 120 and 240 euros per year, insurers often pay out daily values and sometimes use hefty deductible amounts. In many cases, telephone insurance therefore costs more than it yields.
However, this is a general advice. After all, smartphone insurance certainly offers a solution in some situations. This is the case, for example, if you are a notorious telephone runner and / or do not like risks at all, not at all when it comes to expensive iPhones.
Midway: AppleCare +
For those people, AppleCare + is especially worth checking out. Apple’s own insurance is competitively priced and can be taken out simultaneously when buying your new iPhone. The insurance costs, depending on the type of iPhone model, between 100 and 230 euros and annually compensates a maximum of two claims as a result of an accident caused by you.
AppleCare + also works at your own risk. Did you damage the screen of your iPhone? Then you pay 29 euros out of pocket. For other damage, the deductible is 99 euros. The iPhone battery is also covered by AppleCare +. As soon as the battery has less than 80 percent of its original capacity, you can turn to Apple.
You can take out AppleCare + for up to 60 days after purchasing your iPhone. It is wise to do this as soon as possible as the cover applies from the time of purchase. So you cannot turn to insurance if your device has already been damaged.
