When I bought my daughter a new phone at Verizon recently, I was asked if I wanted insurance on the phone. The insurance would offer a replacement phone in the event it was damaged beyond repair.
As I began to do the quick math in my head, that little voice of reason that I’ve been hearing from a lot more lately promptly gave me three reasons to say no.
1. Monthly Cost
The upfront cost for the insurance is $7 per month, or $84 a year. If the need arises, we can likely replace the phone with a used model from an Ebay seller for under $100. So unless she destroys the phone in the first two months, the insurance math just doesn’t add up.
2. Deductible
In addition to the monthly premium, if we need to use the insurance, there is a $100 deductible to get a new phone.
3. Obsolescence
The model of your phone will likely be obsolete by the time you need to use the insurance. Earlier this summer my daughter’s other phone gave out. Verizon didn’t have a “comparable replacement” so we ended up buying the exact model on eBay for about $60. We took it in to get the contacts transferred over and she was back in business.
There was a time when we felt it was worthwhile to pay for insurance cell phones. That was when the whole cell phone craze began and we had this fear of forking out a bunch of money just to maintain the ability to use our service. Now that cell phones are plentiful and we have been using them for a long time with no issues, I just can’t justify the cost of insuring them.
Paul Fiarkoski 
I recently upgraded my phone, and the sales person put a major guilt trip on me for not purchasing the insurance. I was a little stumped. What business is it of his if I trash my phone as soon as I reach the parking lot (the excuse he gave me for why I should purchase insurance). I assured him that I am an adult and can handle it if I trash my phone. You are exactly right–the costs don’t outweigh the benefits in this case.