With all the newest phone models and brands hitting the market at such a fast rate, it seems like getting phone insurance would be the best idea to cover the purchase and commitment you’re about to make. However, this may not be the best decision for everyone.

Here are some questions to consider when thinking of purchasing cell phone insurance:

• Do you really NEED it? If you use your cell phone a lot and rely on it for your business or contact needs, than your answer may be YES to this. However, if you use it primarily as your social link to your friends and family, or primarily use a land line, then you may want to reconsider this purchase.

• Will your premiums end up accumulating to more than the phone is worth? Do the math and see what your monthly premium for this insurance will cost in the long-run. If it accumulate to more than the phone is worth, it may be a wise choice to politely decline the offer.

• What is the deductible on this plan? Do you want to end up paying over $200 throughout your cell phone contract only to find that to replace a broken phone will cost you more money? I know that all of you said NO to this and for that reason it helps to know about any deductibles.

• What does it actually offer? If your phone breaks, what will they do for you? Will they send you a new phone or just a re-furbished phone? Will they replace or downgrade your replacement (it happens)? Know what you are going to be paying for and know what to expect.

• Would it be better to save the money for a newer phone? Some cell phone contracts last a year or two years. By the time your contract is up it may be time for an upgrade. If this is the case, would it be better to save the monthly amount of money that you will be paying for the insurance in order to pay an additional amount in a year or two to get a newer (maybe better) model?

• Look into the statistics of problems with the specific device or what you are getting coverage for. According to Consumer Reports, only 17% of consumers surveyed said they got a new phone because their old one broke, and only 3% because the phone was lost or stolen.

Cell phone insurance may not always be the wrong decision. If you rely heavily on the functioning and existence of your cell phone, it may prove beneficial to get the insurance. Also if you own a small business or rely on it to get the information you need for businesses (like business people that travel a lot) then having cell phone insurance, the RIGHT cell phone insurance would be something to look into.

While cell phone insurance is not something that comes up very often, these kinds of considerations should be taken whenever you are looking to make a large purchase or planning a life change. In order to help you consider these things and to help you find the best options and policies for you, Debbie at Southern Colorado Insurance Center will work closely and personally with you and your individual situation. To get more information call Debbie at Southern Colorado Insurance Center at (719) 329-4441 or email her at youarefirst [at] scicteam [dot] com