Understanding Phone Insurance

Updated on
September 15, 2022

What is phone insurance?

Phone insurance is a specialized insurance policy that provides comprehensive coverage against unforeseen scenarios. Think of it as a safety net protecting your phone from common accidents such as cracked screens, spills, and liquid submersion, as well as protection against theft, vandalism, and natural disasters. 

I have homeowners/renters insurance, do I still need phone insurance?

The standard homeowners/renters policy was designed to protect you from a catastrophic loss to your primary residence. As a result, you pay a small annual fee (your premium) to protect you from a much larger expense if something happens (e.g. the cost of replacing your home, its outbuildings, and all of your personal property). This is a good deal for major incidents. However, the more little things you cover, the higher your homeowner premium is.

Homeowners policies have limitations on cell phones as to how they are covered, where they are covered, and how much they are covered for. Oyster has plans specifically for cell phones.

What does phone insurance cover?

Phone insurance covers the cost of repairing or replacing your cell phone for the following losses: cracked screens, spills, liquid submersion, accidental damage (e.g. drops), theft, natural disasters, fires, floods, and any power surge caused by lightning. They typically do not cover any intentional damage or cosmetic damage. For new devices, we also offer optional cover for mechanical failures and manufacturing defects.

Why do I need phone insurance?

One of the major advantages of having phone insurance is reducing out-of-pocket expenses when accidents happen. When deciding whether you need phone insurance, consider whether you can afford to repair or replace your phone if anything happens to it. Accidents can happen in an instant and repairs are often prohibitively expensive (e.g repairing an iPhone screen can cost up to $329). Worse still if your item is stolen and you need to pay to replace it.

What is the difference between insurance and warranty?

Warranty covers mechanical failure and breakdowns. It normally does not provide coverage for accidental damage or theft. Phone insurance protects against a variety of damages including theft, cracked screens, spills, liquid submersion, and drops. For new devices, we also offer optional cover for mechanical failure and breakdown, meaning we cover you for most foreseeable risks.

How much does phone insurance cost?

There is no real "average" policy as many factors affect the price of insurance e.g. item type, price of the item, etc. That being said, insurance is a small price to pay to make sure you are protected should the unthinkable happen and you damage your phone, or it’s stolen whilst you're out and about. The best way to find out exactly how much insurance will cost you is to get a quote. It takes less than 2 minutes to get a quote for a policy with Oyster!

When should I purchase insurance?

You can purchase insurance for your phone any time (as opposed to extended warranty, which can only be purchased when you’re buying your device). However, we strongly recommend insuring your phone as soon as it’s in your possession. That is why we focus on partnering with modern retailers to offer insurance at the point-of-sale, helping to provide continuous coverage starting at the moment of purchase. With Oyster, you can often still purchase insurance for your used/refurbished phones.

What is a deductible?

A deductible is the amount that will be subtracted from any future claims payout (i.e. it is your contribution to the payout of the claim). In general, a lower deductible means a higher monthly premium, and vice versa. With Oyster, many phones are eligible for a $0 deductible, meaning the insurance company will pay the full amount of the claim.

What is a premium?

The premium is the cost of your insurance policy. You pay this figure regardless of whether you file a claim or not.

What information do I need for a claim?

We only need a few pieces of information to get the claim started. These include some basic contact information (if we don't already have it) and your policy number. We will also need some information about the incident, such as the date you became aware of the issue, the item involved, and a brief description of the circumstances. This is all we need to get the ball rolling. We may need additional information during the process, but the claims team will let you know if anything else is needed. Additional information could include photos of the item (e.g. if damaged), appraisals, purchase receipts, and a police report (if theft).

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