Is Cell Phone Insurance a Safe Bet?

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When it comes to car insurance, it's a no brainer, you've got to have it, but when it comes to insurance for your cell phone, the decision may be a little more difficult.

Most of us have cell phone insurance, but are we just throwing our money away?

"It depends on the customer," replies Jackie Hendricks, manager for Blackhawk Communications in Loves Park.

Hendricks says 75 percent of her customers sign on to some form of insurance plan. On average they pay $4.95 per month for it. In the event their cell is lost or damaged, it'll cost $35 to $50 for a brand new one.

"I had a friend and when we were down in Florida, he got his thrown in a pool, so it helped," says Ryan McHugh, who has an insurance plan himself.

It seems like a good idea, but let's say you have a $150 phone. You pay for insurance for two years and then the phone gets lost. By the time you dole out money for the deductible, you've invested more than a new phone would be worth.

"That's why you kind of have to judge customers by their past experiences," says Hendricks.

Hendricks suggests insurance plans for her younger, more active clients, but advises others against one.

"Usually older people, people that just stay at home, or just use the phone in emergencies. Mothers are usually pretty good at holding onto equipment," says Hendricks.

But no matter what you decide, keep in mind that insurance plans are flexible. You can pick up or drop a plan whenever you want.