Mobile phones can cost a lot of money – not only in plans, but also in repair and replacement. In fact, more than 5,000 mobile phone screens are broken. in hour according to Omoton.
If you’re one of the many who have experienced the horror of watching your cell phone slip out of your fingers, you’ll want to cover your bases in case it gets stolen or seriously damaged again. (Though we certainly hope there won’t be next time.)
But you don’t have to shell out for insurance with your mobile carrier. Did you know that some credit cards come with free mobile phone insurance? To qualify, you simply need to debit your monthly mobile phone bill from your credit card. Then, if you ever need to replace or repair your phone, mobile phone protection can recoup most of those costs, potentially saving you hundreds of dollars.
In this guide, we’ll discuss exactly what credit card mobile phone protection covers and the top five credit cards on the market that come with this valuable insurance policy.
What is mobile phone protection?
What most people don’t know is that many credit cards come with a library of free security features. For example, it is fairly standard for many popular travel cards to have travel insurance or car rental coverage. Most bonus credit cards come with an extended warranty or purchase protection that can protect expensive items purchased with the card.
Read more: 13 hidden perks and benefits of a credit card you might not know about
With mobile phone protection with a credit card, instead of buying mobile phone insurance through the cellular network or from a retailer, you can get it directly through your card and at no additional charge. (Assuming, of course, that you have a card that offers this.)
Coverage will depend on the card you carry with you, but most offer between $600 and $1,000 per claim and you’re usually limited to two claims per year. There’s also a deductible that you’ll need to pay, usually between $25 and $100, but that amount pales in comparison to hundreds of dollars being reimbursed.
To be eligible, you must charge your monthly mobile phone bill to a card that offers this benefit; otherwise, you will not be able to file a claim. And, as with any insurance policy, certain exclusions will apply.
What does mobile phone protection cover?
Mobile phone protection will reimburse you if your device is stolen or damaged, whether it be a cracked screen, water damage, or other serious damage to the device.
Please note that if you are filing a claim for theft, you may need to file a police report to provide supporting documentation to the benefits manager.
What is not covered by mobile phone protection
On the other hand, there are exceptions to be wary of. The biggest? If you completely lose your phone. Because there is no paper trail (such as reporting a theft to the police), most issuers exclude loss as a valid reason for filing a mobile phone protection claim.
Your specific cardholder benefits guide will provide more details, but here are some other common do’s and don’ts when it comes to securing a mobile phone with a credit card:
- Minor cosmetic damage such as scratches or scuffs
- Mobile phones rented, loaned or received under a prepaid plan
- Electronic problems related to device software
- Taxes and fees related to the services provided
Because of these exceptions, some cardholders may opt for a more protective plan that can cover things like loss or minor cosmetic damage. But for many people, free mobile phone protection may be enough.
Finally, time is of the essence when it comes to protecting a mobile phone. You will most likely need to file a claim within a certain period of time, usually within 90 days of damage and even within 48 hours of filing a police report if your phone is stolen.
Best Credit Cards for Mobile Phone Insurance
If you’re thinking about applying for a credit card with mobile phone protection, consider one of the following five options: