AppleCare and Other Phone Security Plans: Who Should and Shouldn’t Buy Them?

Apple’s standard warranty does not cover the damage, even though the phone was only a few months old, as the fall was an accident. The bill for replacing the screen? $ 140.

Yes, that repair hit stung. But do I regret leaving AppleCare +, which would have reduced my out-of-pocket costs? No.

A cracked screen was enough of a lesson. Since that fateful incident in 2016, I have yet to submit another phone for repair. And I’m not alone: ​​a 2016 Verizon VZ 0.33%

A survey of more than 1,000 American adults found that 49% of respondents had never broken or lost their phone, and 28% had done so.

If, like me, you are the kind of person who is generally careful with your phone and covers it with a case, then not phone protection plans like AppleCare + ($ 149 for two years) and Samsung Care + ($ 216 for two years). logical.

“These are by definition events with a low probability. That’s why Apple and others make money, ”said Howard Kunreuther, co-director of the Wharton Risk Management and Decision Processes Center at the University of Pennsylvania. “People focus on the consequences and don’t think about the probability.”

Chief among the problems, says Prof. Kunreuther, is that phone shops know the likelihood of phone damage – at least based on the phones they offer for repair – but don’t publish that data. We consumers have to calculate the risk ourselves. And we are bad at it.

When I started looking for research on the topic, most of the so-called studies were published by the companies that aimed to sell coverage. They often had misleading statistics or blatant omissions.

If you got a new phone while on vacation and are considering activating a coverage plan, I can see how this makes sense. The warranty included with purchase only covers manufacturing defects, not accidents. And the price of repairs has gone up: a cracked iPhone 6 screen in 2015 cost $ 109 to fix – today the equivalent of a screen change on an iPhone 12 costs $ 279 and $ 199 on a Samsung Galaxy S21. Other iPhone repairs – broken camera, malfunctioning microphone – can cost up to $ 449.

Apple quietly expanded coverage in the fall, making the AppleCare + program more like a deal. Customers can now claim damages twice a year instead of twice every two years. The Theft and Loss plan (an extra $ 70 on top of standard AppleCare +) now charges $ 149 deductible for stolen or lost phones, down from $ 269.

Looking at individual numbers can seem like you’re saving money by buying coverage. Only $ 29 for an iPhone or Galaxy screen repair! But don’t forget to charge that premium.

There are a lot of numbers to think about, so let’s look at a few cost scenarios. First off, here’s what could be the biggest concern for someone who just bought a high-end iPhone:

Broken iPhone 12 screen

• $ 279 – If you have no coverage and your iPhone screen breaks.

• $ 178 – If you prepay for two years of AppleCare + and break your screen.

• $ 149 – If you bought the plan and don’t break your screen.

• $ 0 – If you don’t have a plan and don’t break your screen.

You may not be prone to breakage, but you are concerned about a stolen or lost phone. Here’s how that stands out with Samsung‘s

last:

Lost Samsung Galaxy S21 phone

• $ 799 – If you don’t have coverage and you lose your new Galaxy.

• $ 541 – If you pay for two years of Samsung Care + and you lose your phone.

• $ 312 – If you pay for two years of Samsung Care + and you don’t lose your phone.

• $ 0 – If you don’t have coverage and you don’t lose your phone.

The most important consideration is probability. Are you willing to bet Apple that you will definitely break your screen? Or is Samsung betting that your phone will definitely be misplaced? Of course, someone reading this could skip the coverage plan and regret it later, but statistically that person is in the minority.

Also, hitting a high-quality cover made of a non-slippery material and raised edges that protect the screen significantly reduces your chances of damage. You can even add a PopSocket or ring for an even more secure grip.

In addition, smartphone screens are becoming more durable. Apple says the latest iPhone 12 devices have a display with four times the drop protection. Meanwhile, Samsung claims that the S21’s Gorilla Glass Victus is the strongest glass on a Samsung smartphone.

You may not even have to consider the coverage plan bet. Some credit cards offer the benefit of phone protection. For example, Chase Freedom Flex includes phone theft or damage insurance, as long as you pay your monthly mobile bill with your Chase card. The deductible is $ 50 and you can make two claims per year.

Many homeowners and renters insurance policies don’t cover accidental damage, but they do include theft from the home under personal property cover. This applies to smartphones, although the deductible is often high. My policy deductible is $ 1,000 – well above the cost of an iPhone 12. But if someone stole a backpack with your phone, laptop, and other valuables, you’re covered. Hippo, a homeowners insurance startup, and Toggle, the renters insurance arm of Farmers, let customers choose their deductibles when choosing a policy, as low as $ 500 on Hippo and $ 100 on Toggle.

When to buy a plan

The economy can be different if you can’t afford to wait for repairs – Apple and Samsung offer replacement phones as early as the next day, and some insurance plans through cellular carriers can even be delivered the same day.

Otherwise, these extended coverage options are best for big klutz. If you break a phone at least once a year, be sure to sign up. The question is: which plan? You can purchase comprehensive coverage from your phone manufacturer, your mobile operator or a third party.

Most require you to sign up within a specified period of time after purchase, 60 days for AppleCare + and one year for Samsung Care +. Samsung’s theft and loss coverage is only available at the time of purchase.

Some companies, such as Progressive and SquareTrade, allow you to register your phone, used or new, at any time with proof of purchase. And no, if you break your phone, sign up for the plan, your pre-existing crack is not covered. (That’s insurance fraud.)

Progressive has a relatively affordable theft and loss deductible: $ 75, with two-year premiums ranging from $ 169 to $ 175, depending on your phone. But there is one caveat – coverage doesn’t start until 30 days after you sign up.

SquareTrade has a flexible monthly fee of $ 9, with a fixed deductible of $ 149 for all damage claims, but no theft or loss coverage. This can be a good temporary option for travelers, for example.

Mobile carriers charge the most. AT&T‘s

phone insurance is $ 15 a month, more than all 10 plans I’ve compared. However, it offers impressive benefits, including same-day device replacement or repair, up to three claims per year, $ 29 screen repair, theft and loss coverage, and unlimited space in AT & T’s Photo Storage app. Even if you have those other benefits, at least you know that you can actually use that photo storage.

Whatever you decide, my main advice is this: get a case to protect your investment and keep it away from salt water, even if your phone is marketed as “water resistant”.

(Dow Jones & Co., publisher of The Wall Street Journal, has a commercial agreement to deliver news through Apple services.)

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Write to Nicole Nguyen at [email protected]