AppleCare and other phone protection plans: who should – and shouldn’t – buy them

Apple’s standard warranty does not cover damage, although the phone is only a few months old, because the fall was an accident. The screen replacement bill? $ 140.

Yes, that repair blow hurt. But do I regret letting go of AppleCare +, which would have reduced my direct cost? Do not.

A cracked screen was a lesson enough. Since that fateful incident in 2016, I still haven’t taken another phone for repair. And I’m not alone: ​​The 2016 Verizon VZ 0.33%

A survey of more than 1,000 adults in the USA found that 49% of respondents never broke or lost their phones, and 28% did so once.

If you, like me, are the type of person who is usually careful with your phone and covers it with a case, then phone protection plans like AppleCare + ($ 149 for two years) and Samsung Care + ($ 216 for two years) doesn’t make sense.

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

The main problem, says Prof. Kunreuther, is that phone retailers know the likelihood of damage to the phone – at least based on the phones they take in for repair – but they don’t publish that data. We consumers must calculate the risk ourselves. And we’re bad at that.

When I went to look for research on the subject, most of the so-called studies were published by companies that intended to sell roofing. They often had misleading statistics or glaring omissions.

If you bought a new phone during the holiday and are thinking about activating a coverage plan, I can see how it seems to make sense. The warranty included with the purchase covers only manufacturing defects, not accidents. And the price of repairs has gone up: a broken iPhone 6 screen in 2015 cost $ 109 to fix – today, the equivalent screen replacement on an iPhone 12 costs $ 279 and $ 199 on a Samsung Galaxy S21. Other iPhone repairs – broken camera, defective microphone – can cost up to $ 449.

Apple quietly expanded coverage in the fall, making the AppleCare + program look more like a business. Customers can now claim two incidents of damage each year, instead of two claims every two years. The Theft and Loss plan (an additional $ 70 in addition to the basic AppleCare +) now charges a $ 149 deductible for stolen or lost phones, compared to $ 269.

When you look at individual numbers, it may seem that buying coverage saves money. Only $ 29 for an iPhone or Galaxy screen repair! But don’t forget to take this award into account.

There are many numbers to consider, so let’s look at some cost scenarios. First, here’s what may be the biggest concern for someone who just bought a high-end iPhone:

Broken iPhone 12 screen

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

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

• $ 149 – If you purchased the plan and it doesn’t break your screen.

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

You may not be prone to breaking, but worried about a stolen or lost phone. See how it works with Samsungin

Most recent:

Lost phone Samsung Galaxy S21

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

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

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

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

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

In addition, your likelihood of damage is lessened if you snap a high-quality box made with a non-smooth material and raised edges that will protect the screen. You can even add a PopSocket or ring for an even safer grip.

In addition, smartphone screens are becoming more durable. Apple claims that the latest iPhone 12 devices have a screen with four times more protection from drops. Meanwhile, Samsung claims that the Gorilla Glass Victus of the S21 is the toughest glass on a Samsung smartphone.

You may not even need to consider the coverage plan bet. Some credit cards offer phone protection as a benefit. Chase Freedom Flex, for example, includes insurance against theft or damage to phones, 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 do not cover accidental damage, but include out-of-home theft in personal property coverage. This covers smartphones, although deductibles are generally high. My policy’s deductible is $ 1,000 – well above the cost of an iPhone 12. But if someone stole a backpack that included your phone, laptop and other valuables, you would be covered. Hippo, an insurance startup for homeowners, and Toggle, the insurance arm for tenants at Farmers, allows customers to select their deductible when choosing a policy, as low as $ 500 on Hippo and $ 100 on Toggle.

When should you buy a plan

The savings can be different if you can’t wait for repairs – Apple and Samsung offer replacement phones the next day, and some insurance plans from cell phone operators can deliver even the same day.

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

Most require you to sign up within a certain 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, like Progressive and SquareTrade, allow you to register your phone, used or new, at any time with a purchase receipt. And no, if you break your phone and sign up for the plan, your pre-existing crack will not be covered. (This is insurance fraud.)

Progressive has a relatively affordable franchise for theft and loss: $ 75, with two-year premiums ranging from $ 169 to $ 175, depending on your phone. But there is a caveat: your coverage does not start until 30 days after enrollment.

SquareTrade has a flexible monthly fee of $ 9, with a fixed deductible of $ 149 for all damage claims, but without coverage for theft or loss. This could be a good temporary option for, say, travelers.

Cellular operators tend to charge more. ATTin

phone insurance costs $ 15 a month, more than any of the ten plans I have compared. However, it offers impressive advantages, including same-day device replacement or repair, up to three complaints per year, $ 29 screen repair, loss and theft coverage, and unlimited space on the AT&T photo storage app. Even if you never use these other advantages, at least you know that you can actually use this photo storage.

No matter what you decide, my main advice is this: buy a case to protect your investment and, even if your phone is marketed as “water resistant”, keep it away from salt water.

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

—For more WSJ Technology reviews, analysis, advice and headlines, sign up for our weekly newsletter.

Write to Nicole Nguyen at [email protected]