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Canceling My Cell Phone Insurance

Last April I asked the question, Is Cell Phone Insurance Worth the Price? I think I came up with the proper determination as to whether Cell Phone Insurance is worth it.

…there seems to be a turning point when your replacement phone (through e-bay, Craig’s list, etc.) is at or near the price of your deductible.

When I wrote that post in April of 2010 my phone, the HTC Hero, sold on e-bay at 2.5 times my deductible, $100.  As such, I felt that in the off chance that I had to replace the phone it was with the insurance.

However, upon reading Tim’s (from Faith and Finance Fame) standard argument against cell phone insurance, and my standard comment defending it…I thought to myself that I haven’t tested my theory in months. So, I headed over to e-bay and put in my phone to see if a general price for my phone.

I wasn’t surprised to learn that my 18 month old phone that once cost $200 to $350 out of contract was on sale around $90 to $110.  That is all it took for me to cancel my cell phone insurance.

Canceling My Sprint Cell Phone Insurance

I couldn’t believe how easy it was for me to cancel the $7/month charge on my cell phone service. All I had to do was:

  1. Sign into my Sprint Account
  2. Go to My Account
  3. Choose my subaccount (The Wife just got a brand new Blackberry bold so we are keeping her insurance – for the reasons I explained above)
  4. Change Add Ons
  5. Uncheck my Insurance button (Total Equipment Protection)


Sprint Insurance

It was that simple.  Thanks Tim for reminding me to look into it.



  1. Never had cell phone insurance. It, like so many extended warranty plans, is just pure profit for the companies offering them. Stay away for them, don’t waste your money. Instead put aside in your rainy day fund or retirement, or whatever. Just don’t use it to increase the profits of some huge corporation.

    • Do you use an expensive smart phone? I feel like I am the only proponent of cell phone insurance…

      My $7 bucks a month isn’t going to do much for the rainy day fun or retirement and it will take 42 months to save up the $300 (at the $7/month) to get another phone.

      All that being said I canceled because it wouldn’t be $300 anymore it would be equal to my deductible anyway.

      • Actually I own a blackberry. More than likely, in two years your wireless company will give you a new free phone for signing up for a new contract. I have never had any problems with any cell phone I have ever owned and I have had one in my possession for more than a decade. The money is just pure profit for wireless company.
        All those $7 charges here and $7 there, they quickly add up.

  2. That’s a great way to save money because most of the time, you won’t even need it or use it. I’m going to think about canceling my insurance also.

  3. At least in NZ, I think it’s a ripoff. The premium, plus the excess payable if you do need a claim, means it’s hardly worth it.

    I wonder if your contents insurance policy might cover cell phones?

    • contents insurance…is that like homeowners or rental insurance?

      I have never thought of that! That is really an interesting idea

  4. Glad you saved some money by reevaluating it! 🙂 You got your money’s worth for sure..within the first few months too!

  5. I haven’t had a personal cell phone for years (company blackberry), but if I had to get one, this item would be checked off the list. Good post.

  6. I have never had cell phone insurance, however I do not have a smart phone. Your approach makes sense to me!

  7. Wow, I didn’t even know cell phone insurance exists! Do you find yourself buying more insurance products bc of your job you think?

    • I don’t know if it is because of my position…I am exposed to different uses and ideas about Life Insurance, but cell phone insurance is math to me.

      What kind of phone do you have? what is the price to replace it if/when you crack it…that line of thinking.

      • Now that you mention it, my iPhone has a nice crack in the back LOL! I’m hoping it will make it til the iPhone 5 comes out in summer. I try to make my phones last at least 2 years…

  8. I’ve never had cell phone insurance. I just haven’t seen the real reason to have it. What would be some good reasons for it?

  9. I have a company electric leash, erh I mean company cell phone too (blackberry).

    My wife has a cell phone, but we take the gamble that it wouldn’t break….

    If I had an iPhone, I might consider getting such insurance.

  10. I think cell phone insurance makes plenty of sense for a lot of people. I can think of more than a few people off the top of my head that I know who are excellent at breaking electronics.

    Good thinking on cancelling it after a certain time frame. I hadn’t really bothered to consider that where insurance might make sense for the first few months, it definitely doesn’t make sense as the phone ages.

  11. My wife lost her Samsung Galaxy S 2 last week. We paid $250 for it new 4 months ago. We don’t have insurance, but Sprint pointed out that we would be getting a new one for $100 deductible if we had. HOWEVER, we have had cell phones for 15 years, and had insurance for three brief periods during that time, and cancelled each time we tried to put in a claim because it was denied. I am turning to self-insurance. Putting $48 a month (we have 6 phones at this time) into CLCT each month (will buy once a quarter). I am going to go back 15 years and see what that would have done for me, but a rough estimate is that I would have about $8K in stock, kicking out a $56 PER MONTH dividend today!

    Cell Phone insurance is not worth it unless there is no deductible, no “uncovered” situations, and it cost about $1.50 a month, IMO!

    Of course, some folks would abuse such a plan, so there you go. I recommend SELF-INSURANCE!


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