The iPhone insurance picture remains puzzling. The iPhone is a pocket sized mini computer, mini camera, mini video camera and Ipod Music device and much more all rolled into one very compact small device. In today’s world there are devices that do far less application-wise (and are far less technologically speaking) that can be insured, namely, desktop computers, laptop computers and other smart phones. Considering that it costs $600 to $1000 to replace your iphone (depending on model and vintage) the absence of a full comprehensive iphone insurance package covering lost iphone and stolen iphone is a serious lapse.
Of course the iphone is not the only smart phone so when you look further afield it is somewhat surprising to find that cellular insurance for Blackberry, Palm Pre and others in that category are covered for phone lost and phone stolen in combination with phone damage through most providers. You don’t need to go far to see that AT&T Insurance, Verizon Insurance, Sprint Insurance and the other major providers offer this full wireless phone insurance on all their makes – with one big exception: AT&T the exclusive iphone distributor in the US omits iphone insurance altogether. We believe the reason for the iphone insurance gap is indeed the potential cost of replacement to the carriers combined with the perceived risk. It is common knowledge that a damaged iphone is difficult to repair so replacement at around $800 average is a deterrent to the underwriter. Add to this the cost of processing claims and shipment; a high claim ratio may turn out to be a losing proposition for any underwriter. Still, then why are other expensive devices able to obtain cell phone insurance through the same carriers? The argument against iphone insurance is unconvincing. It is just a matter of time before a forward thinking phone insurance provider breaches the gap by offering iphone insurance on the 8GB, 16GB and new 32GB that includes Lost and Stolen with premiums and deductibles that make sense. Right now you can get iphone insurance for accidental spills, accidental drops and factory malfunction. You can’t protect yourself for iphone lost or iphone stolen
Ensquared the prominent phone insurance authority having introduced the first-ever phone insurance calculator continues to focus on the iphone insurance story as it continues to unfold
