cancel
Showing results for 
Search instead for 
Did you mean: 

UPDATE: CCs that still have Cell Phone Protection?

Highlighted
Valued Contributor

Re: CCs that still have Cell Phone Protection?


@Taurus22 wrote:

@kdm31091 wrote:

Keep in mind maximizing the rewards on the bill itself may only be a couple dollars difference in rewards per month which pales in comparison to the cost of a new phone if you have no insurance on it at all. The insurance certainly has a lot of caveats as others have said, but to me it may be worth giving up a couple bucks in rewards for. 


100%  -  For example, I have a $1000 samsung S20+ through Verizon. My phone service + my monthly payment on the phone for 24 mths combined is approx. $110/mth.

 

If you forego any CC insurance and opt for cashback @ (let's say you can get 5% CB just for example) , over those 24 months you would get $132 CB. However, if anything happens to your phone......oops.

In contrast, $600 - $50 deductible ($550)  toward a new phone goes much further.

 

For me it's just a no brainer. Ideally the NFCU Cash Rewards @ 1.5% CB would insure for ($550) after deductible plus the ($39.60) CB for a total of ($589.60) if anything ever happened to the phone. Almost 60%.


Just like any insurance coverage, everyone has to evaluate their own risk factors and decide how much they want to assume personally.  I carry high deductibles on my car and homeowners insurance but I don't advise everyone to do that because many can't afford to absorb that deductible if something happens. 

 

In over twenty years with cell phones, there is only one phone I can remember that might have been covered by such a policy.  It was an older (non-smart) phone that got water-damaged and stopped working.  Other than that, just some minor cosmetic damage (pre-smart phone days before I put Otterboxes on them).  I've never had one lost (other than temporarily misplaced) or stolen.   So a major factor is how careful or careless you are with your personal electronics to begin with.  You could argue that, "well, I have kids ..."   I had kids at home at one point too, and it they lost or damaged a phone, they'd just be without it for awhile!  Lol Smiley Tongue 

 

That one water-damaged phone was back in the days of cell phone "contracts" so I just opted into another 2 years of coverage with the credits I had on my account. 

 

So I just prefer to pocket the money, knowing that one day I may have to fork some of it back over. 

 

Cell phone insurance is pushed and sold by the major carriers for one reason:  It's highly profitable for them.  As has been pointed out, depending on your plan, there are numerous exclusions to watch out for such as no coverage for what is deemed "cosmetic", limitations on the number of claims, requirements to file police reports, deductibles, and the limitations on number of claims per year.  Then there is the issue of sometimes having to file a claim on homeowner's or renter's insuance policies.  There would be deductibles to have to file on those and your rates would probably rise.  Not worth filing a claim over it, IMO.    Unfortunately, some people who buy these policies don't carefully examine them to see the potential pitfalls and what they don't cover. 

 

So I think cell phone protection can be useful in some cases, but it's definitely a "BUYER BEWARE" area.    Examine policies and know what you're opting into.  It may not be what it seems.



Updated 10/08/2020
Total Length of Credit = 35+ years; AoOA (Currently open accounts) = 27+ years;
AAoA = 8+ years; AoYA = less than 1 year (Aug 2020)
Total Open Credit Lines Over $538K. Utilization Less Than 1%.
Inquiries until Nov 2020 (TU:3 -- EQ:4 -- EX:9)
New Accounts: 3/6 months; 8/12 months; 12/24 months (as of 10/15/20)
*Hover cursor over each card to see name & CL, or press & hold on mobile app.
Message 41 of 48
Highlighted
Mega Contributor

Re: CCs that still have Cell Phone Protection?


@Aim_High wrote:

 

In over twenty years with cell phones, there is only one phone I can remember that might have been covered by such a policy.  It was an older (non-smart) phone that got water-damaged and stopped working. 


Being in telecom, I got my first cell in 1987 (and yes, almost endless fun of "guess where I am calling from" and the following year making my first call from a plane to a mobile, wow technology!) and I have also had just one problem, fairly recently, when I slammed my car door on my coat pocket that happened to contain my brand new Galaxy S8+.  That worked out extra well, as I had bought 3rd party coverage from something like SquareTrade, and both they and my credit card purchase protection covered the repair, ending up paying me more than the cost of repair.   (I of course promptly repaid the excess, or I would have if I wasn't busy breathing).

 

But as @Aim_High and others have said, the value depends on individual circumstances.   In general though, unless you are frequently losing your phone (rather than it being stolen), I would stay away from carrier provided insurance, as it is way too expensive.   I think for many credit card insurance can be a good compromise, giving up some rewards for some reasonable coverage

Message 42 of 48
Highlighted
Epic Contributor

Re: CCs that still have Cell Phone Protection?

I remember paying carrier Insurance many years ago, and thought ..."why am I wasting this money"

Have not paid carrier Insurance in over 7-8 years now.

Message 43 of 48
Highlighted
Community Leader
Senior Contributor

Re: CCs that still have Cell Phone Protection?


@M_Smart007 wrote:

I remember paying carrier Insurance many years ago, and thought ..."why am I wasting this money"

Have not paid carrier Insurance in over 7-8 years now.


It's a lucrative racket for carriers. Often with many clauses. One being refurbished replacements.

When I worked for Verizon, add ons were a huge push. It's something most won't use. The refurbished replacements were a huge headache for service techs.

I keep 1 old phone on hand for emergency. Amazon often runs specials on unlocked phones. It might not be your preferred phone, but cheaper way to have phone.

Message 44 of 48
Highlighted
Epic Contributor

Re: CCs that still have Cell Phone Protection?


@blindambition wrote:

@M_Smart007 wrote:

I remember paying carrier Insurance many years ago, and thought ..."why am I wasting this money"

Have not paid carrier Insurance in over 7-8 years now.


It's a lucrative racket for carriers. Often with many clauses. One being refurbished replacements.

When I worked for Verizon, add ons were a huge push. It's something most won't use. The refurbished replacements were a huge headache for service techs.

I keep 1 old phone on hand for emergency. Amazon often runs specials on unlocked phones. It might not be your preferred phone, but cheaper way to have phone.


@blindambition  ..I started buying unlocked phones about 4 years ago, best thing I ever did.

I bought one phone through Google's Project FI .. really like that I can put any sim card in it, runs on CDMA/GSM carriers.

Yes I have about 5 back up phones. The project FI service I use as a back up/travel phone. I go to the app,

turn off service and get No bill. can turn on at any time through the APP, get to keep same phone #

Also keep a H2O sim card handy (non activated) I can plug in and activate on AT&T if need be.

 

Being pretty active in Emergency Comms. over the last 20+ years, you never know what you will need as a back-up.

Message 45 of 48
Highlighted
Frequent Contributor

Re: CCs that still have Cell Phone Protection?


@M_Smart007 wrote:

@blindambition wrote:

@M_Smart007 wrote:

I remember paying carrier Insurance many years ago, and thought ..."why am I wasting this money"

Have not paid carrier Insurance in over 7-8 years now.


It's a lucrative racket for carriers. Often with many clauses. One being refurbished replacements.

When I worked for Verizon, add ons were a huge push. It's something most won't use. The refurbished replacements were a huge headache for service techs.

I keep 1 old phone on hand for emergency. Amazon often runs specials on unlocked phones. It might not be your preferred phone, but cheaper way to have phone.


@blindambition  ..I started buying unlocked phones about 4 years ago, best thing I ever did.

I bought one phone through Google's Project FI .. really like that I can put any sim card in it, runs on CDMA/GSM carriers.

Yes I have about 5 back up phones. The project FI service I use as a back up/travel phone. I go to the app,

turn off service and get No bill. can turn on at any time through the APP, get to keep same phone #

Also keep a H2O sim card handy (non activated) I can plug in and activate on AT&T if need be.

 

Being pretty active in Emergency Comms. over the last 20+ years, you never know what you will need as a back-up.


Speaking to a kindered spirit my friend. That's all I buy these days, got a refurbbed Pixel 4 Orange for a few hundo and thing works amazing. The protection clause would be nice but you'll never see me with a 1200$ phone, especially with the limit being 600$. 

 

So I was getting ready to switch to FI but it didnt seem to have any good serivce in the woods. 

AMEX CS Plat | NSL -- Chase Freedom | $19,000
AMEX Gold | NSL -- Citi Double Cash | $10,000
AMEX HH NAF | $1,000 -- Uber Visa | $5,000
CSR | $29,000 -- USAA Plat | $8,000
USAA AMEX | $23,000
Message 46 of 48
Highlighted
Frequent Contributor

Re: CCs that still have Cell Phone Protection?

I switched my VZ bill to my WF Propel when I discovered it's mobile phone benefits 2 years ago.  

I was willing to forgo the Propel's benefits in lieu of the discounts offered by the Verizon Visa (I take excellent care of my devices) but I got denied by Sync.  

 

I may reapply for the VV in a few months.  

Message 47 of 48
Highlighted
Frequent Contributor

Re: UPDATE: CCs that still have Cell Phone Protection?

Hey All, figured I would mention this given the level of interest:

 

I'm most folks are already tracking this but the new Freedom Flex has the Mastercard cell phone coverage.

 

"up to $800 per claim and $1,000 per year in cell phone protection against covered theft or damage for phones listed on your monthly cell phone bill when you pay it with your eligible credit card." 

AMEX CS Plat | NSL -- Chase Freedom | $19,000
AMEX Gold | NSL -- Citi Double Cash | $10,000
AMEX HH NAF | $1,000 -- Uber Visa | $5,000
CSR | $29,000 -- USAA Plat | $8,000
USAA AMEX | $23,000
Message 48 of 48
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.