Cell phones: Why monthly insurance usually does not pay off

You cut the best deal you can on that cell phone, and then the friendly salesman has a pitch at the end: For just $5 or $7 or $10 a month, you can protect that device that costs $400 or $600 or $800.

Hey, $7 sounds a lot cheaper than $600, right? But most consumer groups, from Consumer Reports to Dave Ramsey, advise against it. Read the policy: You might face a deductible up to $200, plus the company might agree to provide only a refurbished phone.

Invest in a good case instead, and keep the old phone handy as an emergency back-up in case the butter-fingered worst occurs.

As the guy in the video advises, don’t get owned by your phone.

 

 

 

 

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