The iPhone is an expensive gadget, and if you’re clumsy like us and plan to use the device without a case or bumper, it’s a good idea to buy a protection plan to be insured against damage.
The most popular iPhone protection plan is, of course, Apple’s own AppleCare+ which costs $99 and extends the 90 day technical support and one year of hardware repair coverage that you get when you buy an iPhone, to two years. For repairs you can either mail-in your damaged device in a prepaid shipping box provided by Apple, or head to your nearest Apple Store.
But the more important component of AppleCare+ is its coverage for up to two incidents of accidental damage due to handling (but not theft), with a deductible of $79 as service fee for replacement of devices. The replacement device could either be new or refurbished.
If you buy an AppleCare+ plan, you can always be confident since you’re in a direct relationship with Apple rather than a third-party. Note that AppleCare+ can be bought only within 30 days of your iPhone purchase.
SquareTrade is a company that specialises in providing third-party warranty for gadgets like the iPhone and iPad. The company’s iPhone protection plan would set you back at $124 for two years of coverage, or $154 for three years.
Here’s what SquareTrade’s protection plan covers:
- Protection from drops, liquid spills and other accidents.
- Reimbursements for your Genius Bar appointments and repairs.
- Next day shipping for a replacement iPhones, with a $50 deductible
- Coverage of up to four repairs or replacements.
SquareTrade’s protection plan, with the rates mentioned above, are only applicable if you buy it within 30 days of your iPhone purchase. If you’ve an iPhone that’s older than 30 days, you’ll have to pay a $7.99 monthly rental as opposed to a one-time price to buy SquareTrade’s protection plan.
AT&T has its own protection plan called “AT&T Mobile Insurance” which covers theft, loss, accidental damage, and out-of-warranty malfunction. Just like AppleCare+, there’s a deductible for every replacement you make, but in case of AT&T the deductible charge is much higher at $199.
The program itself will cost you $6.99 per month.
Verizon Total Equipment Coverage
Verizon’s Total Equipment Coverage is a similar protection plan with a $9.99 monthly rental that has a $169 deductible, and is capped at 2 replacements in a 12-month period.
Summing up
Out of all these options, AppleCare+ seems to be the cheapest option when it comes upfront cost, but SquareTrade’s deductible, at $50, is lesser than Apple’s $79 charge. Carrier warranties are much more expensive than the other two options, and their deductible charges are very high as well.
As for the question, should you buy a protection plan at all, it depends on how carelessly you use your iPhone. If you’re a person who keeps dropping their phone every now and then, and wants to use a single device for two years, then such a plan can be a wise investment. But if you plan on buying a new iPhone every year anyway, there’s no real use of spending money on a 2 year warranty when you already have a 1 year warranty that comes with your device.
Tell us your thoughts on iPhone protection plans in the comments below. Will be buying one when you purchase the iPhone 5c or iPhone 5s?
