According to data from Lookout Mobile Security, coffee shops and restaurants are the top spots where people often lose their smartphones. One minute you’re using it, and the next, you’re frantically searching for it! In fact, Americans have spent a staggering $23.5 billion on phone repairs and replacements over the past seven years. It’s no wonder extended warranties seem appealing to so many. But in reality, a smarter move is to self-insure and save that extra cash.
Here’s why I believe phone warranties are not worth it.
KEY TAKEAWAYS
Why Extended Warranties Don’t Work:
- Lost/Stolen Phones: Warranties don’t cover lost or stolen phones.
- Water Damage: Most plans only cover certain types of water damage (not immersions).
- Warranties vs. Insurance: Warranties cover manufacturing defects, not accidents—those require mobile insurance.
- Profit-Driven: Retailers push warranties for profit, often leading to high deductibles on top of the initial cost.
Phone Protection Tips:
- Tracking Apps: Use apps like Lookout, Find My iPhone, or iHound to locate your phone.
- Phone Check: Always check for your phone before leaving taxis, restaurants, etc. Use a phone case for extra protection.
- Buy Used/Refurbished: Consider Glyde, Swappa, Amazon, or eBay for reliable used phones. Ensure sellers are legitimate.
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