Phone Insurance Coverage: Costs, Claims, and Exclusions

Phone insurance typically covers accidental damage like cracked screens and drops, mechanical and electrical failures after the manufacturer’s warranty ends, and, on plans that include it, theft and loss. What phone insurance covers varies by provider and tier: some plans bundle every protection together, while others sell theft and loss as a separate product and leave gaps around cosmetic damage, software problems, and repairs done outside authorized channels. Monthly premiums generally run $7 to $26, and every approved claim carries a deductible on top of what you’ve already paid in.

Accidental Damage

Cracked screens are the most common claim, and they’re covered under virtually every plan. A professional screen replacement on a flagship phone runs roughly $100 to $330 out of pocket; with insurance you pay a service fee instead. AppleCare+ charges $29 for screen or back glass damage.¹ Samsung Care+ charges $29 per screen repair on its standard plan and $0 on the plan that includes theft and loss.²

Non-screen accidental damage is covered too. A bent frame from a drop, a shattered camera lens, a broken button. AppleCare+ charges $99 for non-screen accidental damage, while carrier plans through Asurion run deductibles of $25 to $275 depending on the device tier.¹ More expensive phones carry higher deductibles, which is worth confirming before you assume the out-of-pocket cost will be small.

Water damage is covered, with a wrinkle. Some insurers repair a water-damaged phone if it still partly works, while others go straight to replacement if internal corrosion is severe. Damage from prolonged moisture exposure, like humidity buildup over weeks, is generally excluded because insurers treat that as neglect rather than an accident.

Claim limits matter. Samsung Care+ provides unlimited repairs for accidental damage from handling.² Other carrier plans still cap claims at two or three per year, and exceeding the limit means the next incident comes entirely out of pocket.

Theft and Loss

Theft and loss aren’t automatic. Many providers sell a damage-only plan at a lower price and charge more for a version that includes stolen or missing phones. AppleCare+ with Theft and Loss is a separate product from standard AppleCare+, with a $149 deductible per theft or loss incident.¹ Samsung’s theft and loss plan allows up to three claims for lost, stolen, or unrecoverable devices within any 12-month period, with deductibles between $99 and $199.²

A theft claim almost always requires a police report, typically within 48 hours, and sometimes a signed statement describing what happened. No report, no payout.

For loss claims specifically, tracking software becomes the gating condition. AppleCare+ with Theft and Loss requires that Find My iPhone be switched on at the time the device goes missing. If it was disabled, the claim is rejected with no workaround.³ This is the kind of requirement people discover only after their phone is already gone, so verify tracking is active now.

Replacement phones from theft and loss claims are almost always refurbished rather than brand new. T-Mobile’s policy states replacements will be “a reconditioned device of like kind and quality,” with a new device supplied only when refurbished units aren’t available, and the color may differ from your original.⁴

Mechanical and Electrical Failures

Phone insurance picks up where the manufacturer’s warranty leaves off. If an internal defect develops after the standard one-year warranty expires, like a failing battery, an unresponsive touchscreen, or a dead charging port, insurance can cover the repair or replacement. Out-of-pocket, these repairs typically run $100 to $400.

Samsung Care+ covers unlimited mechanical failure claims and includes battery replacement when a diagnostic test shows battery capacity has dropped to 79% or below.² T-Mobile’s Protection 360 similarly covers mechanical and electrical failure after the manufacturer’s warranty expires.⁵

Unlike accidental damage, mechanical failures require a diagnostic assessment before anything is approved. You’ll likely need to visit an authorized repair center or ship the phone in, so a technician can confirm the problem is internal and not caused by physical damage or tampering. If the issue qualifies, the insurer either repairs the phone or sends a replacement, which again is usually refurbished.

What Phone Insurance Does Not Cover

Most claim denials trace back to the exclusions list, and a few of these aren’t obvious.

Cosmetic damage. Scratches, scuffs, and minor dents that don’t affect how the phone works are excluded from nearly every plan. A scratched screen that still displays normally isn’t a covered claim.
Pre-existing damage. Anything that existed before your policy started isn’t covered, and some plans require you to enroll within a set window after buying the phone.
Intentional damage. Breaking the phone on purpose to trigger a replacement is fraud, and insurers investigate patterns of suspicious claims.
Software problems. Viruses, malware, operating system glitches, and app crashes aren’t covered. The policy protects the hardware, not what runs on it.
Unauthorized repairs. If you take the phone to a local shop that isn’t authorized by the insurer or manufacturer, even a simple screen swap can permanently void your coverage. Quality of the repair doesn’t matter; the policy is considered violated the moment an unapproved technician opens the device.
Loss without tracking enabled. On plans that require it, if location tracking was off when the phone went missing, the insurer won’t pay.³

Accessories like chargers, earbuds, and cases are excluded from standard plans. A few higher-tier policies offer limited reimbursement if accessories were damaged in the same incident as the phone, but standalone accessory claims are almost never accepted.

Unauthorized Charges After a Theft

Some plans include limited protection against fraudulent charges run up on a stolen phone, covering unauthorized calls, texts, and data usage. Coverage typically applies only to charges incurred within the first 24 to 48 hours after you report the phone missing, so a delayed report can reduce or eliminate reimbursement. Plans that include this benefit usually cap it, and higher tiers may extend to international calls or premium-rate numbers.

To qualify, notify both your carrier and your insurer as soon as you realize the phone is gone. If the phone is linked to payment apps or digital wallets, phone insurance generally won’t cover unauthorized purchases made through those services. That’s the territory of your bank’s fraud protection.

What Phone Insurance Costs

Most carrier plans run $7 to $26 per month depending on device and coverage level. T-Mobile’s Protection 360 falls in that same range based on the device type.⁴ Over two years, that’s $168 to $624 in premiums alone, before any deductibles. Since deductibles on flagship phones can reach $149 to $275 per claim, a single replacement might still cost $300 or more out of pocket.

The math is worth running for your specific phone. If replacement would cost $400, paying $15 per month in premiums plus a $100 deductible only pays off if you actually file a claim within the first couple of years. For phones that would cost $1,000 or more to replace, the calculation tilts more toward coverage.

Filing a Claim

Most insurers require claims to be filed within 60 days of the incident. The process usually starts online or in a mobile app, where you’ll describe what happened, when, and where. Theft claims need a police report attached. Accidental damage claims may require photos or a repair estimate.

Straightforward claims like cracked screens can be approved within hours. More complex situations involving theft, water damage, or disputed circumstances take several days while the insurer reviews documentation. Once approved, you pay the deductible and receive either a repair authorization or a replacement device.

Claims get denied most often for missing documentation, damage that falls under an exclusion, or incidents that happened outside the coverage period. The most common preventable denial is simply waiting too long to file. Report the incident to your insurer the same day whenever possible.

Credit Card Cell Phone Protection

You may already have phone insurance through a credit card. Several cards include cell phone protection at no extra monthly cost, though the coverage is narrower than a dedicated plan. The key requirement: you have to pay your monthly cell phone bill with the eligible card. Miss a payment or switch cards for even one billing cycle and coverage lapses.⁶

Credit card phone protection typically covers damage and theft but not loss. Limits generally range from $600 to $1,000 per claim with deductibles of $25 to $100, often lower than carrier insurance deductibles. Bank of America’s Executive card benefit, for example, covers up to $600 per claim after a $100 deductible, with a maximum of two claims per 12-month period.⁶

The main trade-offs: credit card protection doesn’t cover lost phones, doesn’t cover mechanical failures, and acts as secondary insurance, meaning it only pays after other coverage is exhausted. For someone whose primary worry is a cracked screen or a stolen phone, the savings over a dedicated monthly plan can be significant.

Homeowners and Renters Insurance

Homeowners or renters policies may cover a stolen phone under personal property provisions, but with real limits. These policies generally don’t cover accidental damage, wear and tear, or intentional damage. Coverage applies primarily to theft, and even then the policy deductible, often $500 to $1,000, may exceed the phone’s value and make a claim pointless. Filing one could also raise your premiums at renewal. For most people, homeowners or renters insurance works better as a backup for high-value losses than as a practical source of phone replacement funds.

1
Apple. AppleCare+ with Theft and Loss Program Summary and Disclosure
2
Samsung. Samsung Care+ Support, Protection and Warranty
3
Assurant. AppleCare+ with Theft and Loss
4
T-Mobile. Cell Phone Insurance and Protection Plan P360
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T-Mobile. Protection 360 and Device Protection
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Bank of America. Cellular Telephone Protection