Are phone protection plans worth it?

Walking into a phone repair shop recently, I overheard someone signing up for a repair plan that cost around $20 monthly with additional deductibles for fixes. Most consumer advocates advise skipping these plans, and here’s why.

What are phone protection plans?

Phone protection plans, also called phone insurance or device protection, are service agreements that cover your phone against various types of damage, loss, or theft that manufacturer warranties typically don’t cover. These plans are offered by:

• Wireless carriers (AT&T and Verizon through Asurion, T-Mobile)
• Phone manufacturers (Apple Care, Samsung Care+)
• Third-party companies (SquareTrade, AKKO, Asurion)
• Credit card companies and retailers

Most plans charge a monthly fee (for example, they might charge between $7-25 per month) plus a deductible which can reach $249 for a lost phone when you file a claim. The higher-end plans may include additional features like technical support, identity theft protection, and same-day repair options.

The true cost of protection plans

Let’s break down what these plans actually cost over time.

Example: Verizon Mobile Protect plan, as of May 2025.

• Monthly premium: $19
• Annual cost: $228
• Cracked glass repair deductible: $0
• All other deductibles: $99
• Annual cost with one non-screen repair: $327

Many protection plans come out to $300+ per year when you include both the premiums and deductibles, which is a significant portion of a new phone’s cost. That means you’d need to have multiple serious issues with your phone each year to financially come out ahead—considering the average cost of replacing a screen is $200, you’d save over $100 paying out of pocket instead of relying on a protection plan. 

Example: Replacing the battery of an iPhone 16 Pro Max

The cost to replace your phone’s battery without a protection plan is likely less than this annual cost. For example, Apple estimates the cost of a battery replacement as $119 for a top of the line iPhone 16 Pro Max. Using a third party repair shop will likely be even more affordable. Why pay $300 for insurance rather than just pay $119 to a repair technician?

Example: Maintaining a four-year old iPhone 13

If you were maintaining an iPhone 13, you might have to replace your screen and battery once each over the course of four years. That would cost approximately $153 for the screen replacement, and $92 for the battery replacement for a total four-year maintenance cost of $245, according to Swappa. The same scenario would cost $912 in premiums for a $19 per month plan and a $99 deductible for the battery replacement assuming the terms of the Verizon Mobile Protect plan. That’s a total four-year maintenance cost of $1011 with a protection plan, meaning you’re spending $766 more than just paying for your repairs out of pocket—that’s not a good deal.

Photo by Staff | TPIN

Better alternatives to expensive protection plans

1. Self-insurance

Instead of paying a company $19 monthly, consider depositing that amount into a dedicated “phone emergency fund.” After a year, you’ll have $228 set aside—enough to cover most common repairs. If you don’t end up needing repairs, the money stays with you rather than with an insurance company.

2. Credit card benefits

Many credit cards offer complimentary phone protection if you pay your monthly phone bill with that card. These plans typically cover damage and theft (though not loss) with deductibles between $25 and $50.

3. Independent repair shops

Independent repair shops typically charge much less than carrier-authorized repair centers or manufacturer service. According to the nonprofit Consumer’s Checkbook, “ratings of computer repair shops and appliance repair services indicate independent repair services, on average, rate far higher than manufacturers’ facilities and ‘factory-authorized’ companies.”

4. Right to repair options

The growing right to repair movement has made it easier to fix your own devices or have them repaired at independent shops. Companies like iFixit sell repair kits and provide step-by-step guides for common phone issues. Manufacturers now must provide repair manuals and parts to consumers who live in states with the Right to Repair.

The bottom line

Phone protection plans are profitable for companies precisely because most customers pay more in premiums than they ever claim in benefits. Unless you’re exceptionally prone to phone accidents or loss, you’re better off setting aside the money you would spend on monthly premiums and paying for repairs out-of-pocket when needed.