Are you wasting your money with phone insurance?

You know, we’ve never had cell phone insurance. Never saw the point. Yeah, we break things as much as the next guy, and it might be worth it. But it might not. Depends on when it’s broken or lost or stolen. According to some, though, insurance just isn’t worth it on non-smartphones.

First is the $50 deductible, which rules out the value of insurance for many low-end phones. But then you have to throw $5 per month into the hat, meaning that you’re paying $60 per year. Many phones you can get for less than that if you’re willing to extend your contract. However, there is another solution.

You know those prepaid phones you see hanging in a case at Wal Mart and other retailers? You can just buy the starter kit for your provider and use the included phone. It’s much cheaper than buying a new phone, and certainly is better than extending your contract.

Yet, people still continue to buy insurance, even if they know it might not be worth it.

“You know you get to the cash register and someone springs the insurance questions on you. It can take you off guard,” said Greg Daugherty of Consumer Reports.

We agree. High pressure sales situation are always a bane for consumers. Salespeople are always trained not to take “no” for an answer, and will offer a series of counters to your objections. It takes a strong will to continue saying “no.”

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