iPhone 4S insurance: Plans compared

October 23, 2011 By Kelly Montgomery

You've got your new iPhone 4S. The next step is deciding which plan is right for you to protect it and avoid a broken phone with a $649 replacement.

Why you need it

The problem with the latest and greatest smartphones is that along with their bright screens and spectacular features comes a hefty retail price tag. If you’ve just upgraded to the new iPhone 4S, chances are that you only paid a starting price of $200 (for a 16GB) by signing a new two-year contract with either AT&T, Verizon, or Sprint. This is all well and good, but what happens if you break the glass on your phone or drop it in water while you don’t have a carrier upgrade available? Well, if you want to get yourself a brand new iPhone 4S to replace the one that you just broke, it will cost you a whopping $649. So, you can either take the risk of having to fork over that rather large chunk of change should you break your phone (for accidental damage) or you can pay a much smaller price for an insurance plan that will cover hardware malfunctions as well as idiotic accidents.

Apple Care+ ($99 for two years including two accidents)

The first option that you have with your phone, and probably the best, is getting Apple Care+ when you buy your new phone. This plan extends your Apple hardware repair and support to a total of two years and gives you accidental coverage for two incidents during that time. This means that if something goes wrong with your phone, not caused by reckless or inappropriate use, you’ll be covered for two years and Apple will repair or replace your phone. If you drop your phone on concrete, in water, or throw it across the bar while you’re drunk, you will be able to replace your phone for a $49 fee, but you will only be able to do so twice during your two-year insurance plan. Break your phone doing something stupid for the third time, and you’re pretty screwed. The plan does not cover loss or theft, but then that’s what your Find My iPhone app is for.

We would be inclined to recommend this option to everyone except for one problem: Apple is saying that you must purchase Apple Care+ for your iPhone 4S at the same time as you buy your phone. For those who pre-ordered the phone, this claim is a bit confusing. If you bought or preordered your phone through the Apple store or AT&T, Apple Care+ should have been an option at the time of purchase, but it wasn’t and still isn’t available for those buying through Verizon or Sprint. Despite the claim on the Apple Care+ buying page (that you must purchase insurance at the same time as your phone), Apple has made some provisions for early adopters. Through November 14, customers who either preordered the iPhone 4S or purchased any iPhone on or after October 14 will be able to add Apple Care+ to their device.

Carrier insurance

AT&T: Through AT&T, customers can choose a Mobile Protection Pack for a bill of $9.99 each month. This insurance covers lost, stolen, and damaged devices, but users must pay a $199 deductible to get a phone replaced. This plan includes a phone-locating service and phone support, but the carrier also offers an insurance-only option for $6.99 per month. With this insurance, you can also only make two claims, which makes the Apple Care+ protection look pretty good if you can get it.

Verizon: Verizon users can add Total Equipment Coverage for $10.99 per month, which is a hefty price when you combine that with the $169 deductible that you’ll have to pay up should you lose or break your phone. We’d recommend almost any of your other options over this one.

Sprint: The newest carrier to the iPhone family has chosen not to offer carrier protection.

The good thing about these services is that you can usually add these to your monthly bill at any time, unlike Apple Care. The not so good thing is that over a two-year period, monthly payments and one phone replacement would cost you somewhere over $400. So, if you can afford to cough up the money for an insurance plan upfront, Apple Care or a third-party is a much better offer.

Third-party options

SquareTrade: Right now, customers can get two years of coverage from this third-party insurer for $99. This coverage includes manufacturer defects as well as accidental coverage. If you spill on or drop your phone, you’ll have to pay a $50 deductible to get it repaired or replaced. To file a claim with the company, you can either send the phone in or take it to an Apple store and get reimbursed for the cost of repair. With this the company offers a five-day turnaround guarantee. The only catch to this option is that customers must purchase the insurance within 30 days of buying their phone.

Worth Ave. Group: This third-party insurance comes at a slightly higher price tag, but is still a good value and offers the most comprehensive coverage. Users can purchase a year of insurance for $89 or two years for $178, which includes coverage for drops, spills, and theft, and offers unlimited repairs and replacements under the plan. If you’re someone who is accident-prone more than a couple times a year, this plan will have you covered.

GoCare: This company provides a year of protection for $59 or two years for $97. This company offers very comprehensive coverage, including mechanical failures, drop, spill, and water submersion protection, but you’re are only allowed one replacement per the term of your coverage. Other pluses to this coverage include loaner phones, technical support, and data recovery. Users can buy this insurance for their phones at any time.

Things to think about before you buy

Before you purchase any type of insurance for your new phone, think about your typical phone use and history to determine how much coverage you really need. If you’ve never dropped your phone, maybe you don’t need to buy insurance or should only purchase the lowest-priced option. If you have an upgrade available on your plan (or a family plan member willing to share), you might consider waiting to purchase insurance until that upgrade is gone. There’s no point in buying carrier insurance if you have an upgrade available, since the deductible and the cost of buying a new phone on a two-year contract price are just about the same. If you are especially accident-prone, on the other hand, you might want to pick the insurance option that offers the most accident coverage and replacements.

Our recommendations

Most people: Apple Care+ or SquareTrade

If you can get Apple Care+, it seems like the overall best value for the coverage that you get. For only $99, you’ll get two full years of Apple repair on hardware issues and up to two phone replacements (accidental damange) for only $49 each.

If you can’t get Apple Care+, SquareTrade seems to be the next best option. The price is the same (on sale) and minus the convenience of getting everything taken care of at the Apple Store, you’ll get just about the same coverage.

Accident-prone: Worth Ave. Group

This coverage has a slightly steeper price tag, but offers unlimited repairs and replacements, meaning no matter how many times you drop or spill water on your phone, you’ll be covered.

Late to the game: GoCare

If you’re buying your insurance long after you bought your phone, your options are a bit more limited. For that situation, we’d recommend GoCare, which is low-priced and offers comprehensive coverage. Only catch is that you only get a full replacement phone once in your insurance term.

Showing 23 comments

Dave Yaffe at 11:43am 12th December 2011 DO NOT PURCHASE INSURANCE FROM WORTH AVE GROUP !!!STUDENTS, DON'T BE DUPPED!!I purchased insurance for my new iPhone 4 about a year ago from Worth Ave Group. When I made the initial call, I was VERY specific with their salesperson regarding WHAT they covered. I asked specifically, "What is covered? Is water damage covered? Is theft covered? Is loss covered?" I was told in a very positive voice "Yes, all that is covered". I asked, to be even more specific, "what if I drop it in the toilet, what if I lose it, what if I step on it?". Again, I was told "Yep. All covered".So, I purchased the insurance. The price was fair and this salesperson seemed convincing.Boy was I duped! About two months ago, I was in a gas station, my phone was on the passenger seat, I started filling my car up, walked to the cashier to buy a pack of gum and when I got back, my iPhone was gone! (stay out of Van Nuys, Ca.). I filed a claim and was told that THEY WOULD PAY THE CLAIM because there was no sign of forced entry into the car.Now, when I asked the salesperson originally if there was anything else I should know about their insurance, anything that would prevent them from paying a claim under the circumstances I mentioned, they said "absolutely not". Well, surprise surprise.I wrote to the claims adjuster and the owners of the company and was flat out told there's no way they're paying my claim.DO NOT BUY INSURANCE FROM WORTH AVE. GROUP!!!!They're a scam, don't pay off on their claims.Here is the contact information for the people who scammed me?Michele Bosler, Claims Adjuster. michele@nssi.com michele@worthavegroup.com (405) 533-7919Karen Gallagher karen@nssi.com, Shawn Crawley, shawn@nssi.com
ensquared at 4:31am 28th October 2011 Kelly thanks for editing your article and now reflecting the $6.99 AT&T product. We appreciate the feedback (even if it has been negative and we don't agree with all the comments made), moving forward we will take it easier when trying to make sure the facts are presented. Enjoy your iPhone 4S devices!
htownjennings at 2:33pm 27th October 2011 Sorry...I just had to post a comment. I found your website after a Google search since I bought my three iPhone 4S's and needed insurance. Kelly, thanks for the article and I don't think you were intentionally trying to slight this other company. I am currently with Squaretrade and considering Applecare+ now, and saw this other's adverts on sites. After this strange exchange (I'm glad I decided to read the comments) I checked them out.I am very afraid to pay this much money (which would amount to just shy of $1000 if I took the high options and made claims) to a company after reading these comments. I understand that it is important to bring information to the table, but there is always a tactful way to do it. Attacking a blogger is an odd way to promote a brand.
1. Kelly Montgomery at 2:49pm 27th October 2011 I'm glad you found the article helpful, that was obviously our intent. And yes, we included what we thought were the best companies overall. Nobody said this was a list of every single insurance carrier out there, we just wanted to bring you information on the best ones. Good luck with your search!
2. moonbeam5661 at 2:33pm 28th October 2011 Can I ask why you want to switch from SquareTrade to AppleCare+?
  1. htownjennings at 9:37am 1st November 2011 If I pay $99 to both, then pay a $49 deductible to fix the phone, I can do that twice with AC+, but with ST they may fix the phone once, and the second time just give me a check for the remainder of the warranty minus the cost of the first repair. I've now started investigating the option of paying $199 per repair outside of warranty. I had 2 ST warranties on my old iPhones and never needed to use them (thank God!) so $200 went unused...which is the point of a warranty. With a warranty, it would cost me each $100 to not use it, $150 to use it once...without a warranty it would cost me $0 to not use it, and $200 (or less if I handle the repair) to use repair service. Its like playing the slot machines, but in reverse!
ensquared at 6:14am 27th October 2011 Hi Kelly,You are arguing with me about a fact, which I can promise you that your information is not correct. As the CEO of Ensquared I can tell you that we spend our lives selling and servicing customers’ needs when it comes to device insurance. We operate our business not only in the USA but also in Canada. Our reputation is one of excellence- if you doubt what I am saying please make Google your friend and do a search on “Ensquared” with an effort to find and uncover negative feedback about Ensquared- you wont find any!In 2009 we were the first company in North America to compare phone insurance, this means we have the ability to investigate right down to the last detail and compare information via our Phone Insurance Calculator. Our Phone Insurance Calculator crawls the Internet on a daily basis with a single purpose to search for Phone and Tablet insurance data, once we have it, we can reference the facts. As the #1 Authority in Smartphone & Tablet Insurance on the internet- we can once again confirm that you are not correct about the price that Ensquared’s competitor AT&T charges for iPhone Insurance. Here is why:1. The following image is a snapshot of the AT&T website which lists the price of the insurance product http://tinypic.com/r/1zm2kar/5 2. Please see the product’s terms and conditions (this is really the contract) http://www.wireless.att.com/learn/en_US/pdf/wireless-insurance-coverage-english.pdf Go to section E where it says “all eligible equipment types: $6.99 per month”, again a snapshot for you to look at http://tinypic.com/r/1zbtrpl/5 3. Asurion are the folks who actually operate the insurance product for AT&T, visit their site, it is as clear as day http://www.mymobileprotect.com/ 4. I am an AT&T customer, I called them and asked them if I am changing from Blackberry to Apple 4 or 4S. Response: $6.99 pm and $199 deductible on any iPhone model. 5. Ian Bell, on this very page has confirmed that “AT&T wants to charge $6/mo and then $199 to replace your phone if it's damaged. That’s just crazy.” I agree with Ian it is crazy when Ensquared can cover the same phone for damage at $3.74 with a $50 deductible and full cover (Lost and Stolen plus Accidental Damage) for $5.40 with a $179 deductible.So there we go 5 reference points on a topic.Kelly, this is not a topic that is simple, I believe also you omitted to consider the claim limits and number of claims allowed over the term. This makes a huge difference to what is good and poor value. For example: SquareTrade has a capped claim limit of $599 which means once it is used claims runs out. Claim value per claim is far more impressive as a value item. Perhaps next time you write on this interview us at Ensquared and we will give additional insight into aspects that consumers should look for- we can be your friends.
1. TechFreak at 11:37am 27th October 2011 I will never use Ensquared simply because of the way you represent your company here in the comments. You are making personal attacks at the author and you come across as totally belligerent. Add to that the fact that your site looks unprofessional and simply put: Looks like a sham.Please stop posting here as you are only hurting your own reputation.
2. Ian Bell at 11:43am 27th October 2011 Please do not post on this site. You are clearly only trying to promote your own company and you are doing a terrible job of it. We also do "no follow" on our site, so no pagerank or links will transfer over to you.
3. Adam Reed at 11:46am 27th October 2011 What a load of horses#@t. Do you also have pills to sell to make my shlong bigger? Maybe you can find me a date online? You are trying to sell your own business via an article about your competitors in the comment section. If you want real coverage, contact Digitaltrends or whoever directly and make a case. Posting blasts in the comments section and attacking the author is ridiculous.You are going to make it public about the "misleading information?" If you really are the CEO for Endsquared you are doing more harm to your company's reputation than you can imagine. You are a very silly person.I liked the article, by the way.
moonbeam5661 at 4:11pm 26th October 2011 I have been pulling my hair out to find out more about the iPhone and it's insurance options for myself and my family. I, for one, thank you for providing this informative, clearly written article. At least I know I won't be buying insurance through my carrier, that's for sure. You've made my decision a tad easier.
1. Kelly Montgomery at 4:12pm 26th October 2011 Very glad it was helpful to you! Thanks for your comment.
moonbeam5661 at 4:07pm 26th October 2011 Ensquared website is very hard to read. Very poorly written, bad grammatical errors. And to comment here twice to the author that her facts are incorrect, when they, in fact, are not? Fat chance on me buying insurance from you, Ensquared!
1. andrew at 11:45am 27th October 2011 Totally agree.... seems a lot like the comment spamming that Walmart's Straight Talk prepaid phone service does...
ensquared at 7:48am 26th October 2011 AT&T is $6.99 a month not $9.99 a month as you have written. Follow Ensquared on the iPhone Forum to see why this article does not present the facts.
1. Kelly Montgomery at 2:26pm 26th October 2011 Like we said above, the AT&T Mobile Protection Pack is $9.99 a month. You can check the AT&T Website to see that it is correct.
ensquared at 7:45am 26th October 2011 Kelly Ensquared is now going to make it public about the misleading and false information you have presented. We urge you to correct your article.
Ian Bell at 9:24am 24th October 2011 Great comparison. We pre-ordered out iPhone 4S, so I am going to call Apple tonight to get Apple Care+. This IMO is the best insurance plan you can get.AT&T wants to charge $6/mo and then $199 to replace your phone if it's damaged. Thats just crazy.
1. Kelly Montgomery at 11:19am 24th October 2011 Yeah, I called Apple Care + for mine and they added the insurance no problem.
  1. ensquared at 6:15am 26th October 2011 Kelly, why have you not included Ensquared.com in your comparison?
    ensquared at 7:02am 26th October 2011 Kelly, this article is not only factually inaccurate, it is incomplete from a comparitive viewpoint. A correction is needed for AT&T, their monthly charge is $6.99 not $9.99 a month.It is a shame that not all the facts have been presented to readers here. Ensquared.com has the most competitive products on the market for iPhone Insurance. Ensqaured beats AT&T, Verizon, Square Trade and Apple Care. Read side by side comparisons at http://www.ensquared.com/iphone_insurance.htmEnsquared has Accidental cover for 2 years at $89.99 and Lost, Stolen and Accidental Damage cover for 2 years for $129.99 which is $5.40 a month. All products come with a 15 day money back guarantee. Ensquared is underwritten by NYSE listed Fortegra Financial and Ensquared is a proud sponsor of the iPhone Forum.
    Kelly Montgomery at 2:23pm 26th October 2011 We are referring to the AT&T Mobile Protection Pack, which is indeed $9.99 a month for AT&T subscribers. We have checked.
iMan at 8:28am 24th October 2011 Good comparison. Thank you