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

Apple’s standard warranty did not cover damage, even if the phone was only a few months old, because the drop was an accident. Invoice for screen replacement? 140 USD.

Yes, he hit the repair. But I regret giving up AppleCare +, which would have lowered the cost in my pocket? Not.

A cracked screen was a sufficient lesson. Since that fateful incident in 2016, I have not yet received a phone call for repairs. And I’m not alone: ​​a 2016 Verizon VZ 0.33%

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

If you, like me, are the kind of person who is generally 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) does not make sense.

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

The main problem, says Prof. Kunreuther, is that phone retailers know the likelihood of phone damage – at least based on the phones they take for repairs – but do not publish this data. We, the consumers, are left to calculate the risk ourselves. And we’re bad at this.

When I went to look for research on this topic, most of the so-called studies were published by companies intending to sell coverage. They often had misleading statistics or obvious omissions.

If you received a new phone during the holidays and are considering activating a coverage plan, I can see how it seems to make sense. The warranty included in the purchase covers only manufacturing defects, not accidents. And the price of repairs has risen: a broken iPhone 6 screen in 2015 cost $ 109 to fix – today, swapping the equivalent screen on an iPhone 12 costs $ 279, and $ 199 on a Samsung Galaxy S21. Other fixes for iPhone – defective 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 damages each year, instead of two damages 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 misplaced phones, down from $ 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 consider this premium.

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

Spart iPhone 12 screen

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

• $ 178 – If you pay AppleCare + in advance for two years and break your screen.

• $ 149 – If you purchased 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 worried about a stolen or lost phone. Here’s how this shakes up with Samsung‘s

the most recent:

Samsung Galaxy S21 phone lost

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

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

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

• 0 USD – If you do not have coverage and do not lose your phone.

The most important aspect is probability. Are you willing to bet Apple that you’re sure to break your screen? Or do I bet Samsung that your phone will definitely be lost? Sure, someone reading this might skip the coverage plan and regret it later, but statistically that person is a minority.

Also, your likelihood of damage decreases greatly if you hit a high-quality case made of a non-shiny material and high edges that will protect the screen. You can even add a PopSocket or a ring for an even more secure grip.

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

You may not need to consider the coverage plan bet. Some credit cards offer telephone protection as an advantage. Chase Freedom Flex, for example, includes insurance for theft or damage to phones as long as you pay your monthly mobile phone bill with your Chase card. The deductible is $ 50 and you can do two damages a year.

Many homeowners and tenants insurance policies do not cover accidental damage, but include theft from the home under cover of personal property. It covers smartphones, although deductibles are often large. My policy deductible is $ 1,000 – well above the cost of an iPhone 12. But if someone stole a backpack that includes my phone, laptop and other valuables, you would be covered. Hippo, an insurance startup for homeowners, and Toggle, the farmers’ tenant insurance arm, allow customers to select their deductibles when choosing a policy, from $ 500 to Hippo and $ 100 to Toggle.

When you should buy a plan

The economy can be different if you can’t afford to wait for repairs – Apple and Samsung offer replacement phones right after the next day, and some insurance plans through mobile operators can even deliver on the same day.

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

Most require you to sign up for a certain period after purchase, 60 days for AppleCare + and one year for Samsung Care +. Samsung 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 a purchase receipt. And no, if you break your phone, then sign up for the plan, your pre-existing crack is not covered. (This is insurance fraud.)

Progressive has a relatively affordable deductible for theft and loss: $ 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 enrollment. .

SquareTrade has a flexible monthly fee of $ 9, with a fixed deduction of $ 149 for all damages, but no coverage for theft or loss. This could be a good temporary option for, say, travel.

Cell carriers tend to charge the most. AT&T‘s

phone insurance is $ 15 a month, more than any of the 10 plans we’ve compared. However, it offers impressive benefits, including replacing or repairing devices on the same day, up to three damages per year, $ 29 screen repairs, theft and loss coverage, and unlimited space in AT & T’s photo storage app. Even if you never use those other benefits, at least you know that you can actually use the storage of those photos.

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

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

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Write to Nicole Nguyen at [email protected]