iPhone 4S Insurance and Warranty Plan Comparison

As savvy customers have learned that replacing a lost, stolen or broken iPhone at unsubsidized prices can run as high as $749, many customers choose to protect their investment with an iPhone insurance policy or extended warranty. In the past, we've warned our readers many times about buying overpriced iPhone insurance and extended warranty coverage from their wireless provider. The options offered by AT&T (AT&T Mobile Protect) and Verizon (Verizon Total Equipment Coverage), which are provided by a third party company named Asurion, were traditionally overpriced and offered poor value compared to independent iPhone insurance and warranty providers.

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As the iPhone 4S arrives in customers hands today, we thought it was time for an update. For one thing, the information we provided previously is out of date. As independent providers such as Worth Avenue Group and SquareTrade have grown rapidly over the past few years, and as these companies have continued to receive excellent approval ratings from customers and consumer advocacy agencies such as the Better Business Bureau (BBB), the major providers have taken notice and made their coverage options more competitive. Apple has even gotten in on the game with their new AppleCare+, which adds accidental damage protection to existing AppleCare coverage.

For the most part, the conclusions remain the same, only the contrast isn't as stark as before. AT&T and Verizon continue to offer very comprehensive policies which cover almost everything, but unfortunately, the costs remain way too high. While these coverages have dropped 30% in terms of their monthly costs (well, AT&T's coverage has, Verizon's remains shockingly pricey), their deductibles remain incredibly high. At the end of the day, if you end up paying nearly half the cost of the phone to file a claim, what's the point?

As the table below should demonstrate, there is an abundance of excellent options. Ultimately, two reasonable options emerge:

Extended Warranty + Accidental Damage Protection: if you're looking only to extend your warranty and protect yourself against drops and spills, you'll likely want to go with one of most afforable options in either AppleCare+ or SquareTrade. As the table shows, you can do this for around $4 per month.

Full Device Protection: if you're looking to protect your device in full, against drops, spills and more worrisome concerns such as theft, go with full device insurance for around $7 per month. The coverages offered by the companies below are nearly identical, and given such, it would make little sense to purchase insurance from your carrier when the ultimate costs are drastically lower with independent companies like Worth Ave Group.

MobileProtect vs. TEC vs. AppleCare+ vs. SquareTrade vs. Worth Ave Group


AT&T Mobile Insurance Verizon Total Equipment Coverage Sprint, AppleCare+ SquareTrade Worth Avenue Group
Cost
Cost per Month $6.99 $9.99 $4.13 $4.13 $6.67
Malfunction Deductible $199 $0 $0 $0 N/A
Damage Deductible $199 $169-$199 $49 $50 $50
Theft Deductible $199 $169-$199 N/A N/A $50
Loss Deductible $199 $169-$199 N/A N/A N/A
Coverage Terms Offered
1st Year Coverage YES YES YES YES YES
2nd Year Coverage YES YES YES YES YES
3rd Year Coverage YES YES NO NO YES
Coverage Types Offered
General Accidental Damage YES YES YES YES YES
Drops YES YES YES YES YES
Spills YES YES YES YES YES
Screen Breakage YES YES YES YES YES
Liquid Submersion YES YES YES YES YES
Manufacturer Defects YES YES YES YES NO
Theft Coverage YES YES NO NO YES
Loss Coverage YES YES NO NO NO
Policy Details
Purchase Period 30 Days 30 Days Immediately 30 Days Anytime
Covers New iPhones YES YES YES YES YES
Covers Refurbished iPhones YES YES NO YES YES
Covers Used iPhones NO NO NO NO YES
Covers Jailbroken/Unlocked iPhones NO NO NO YES YES
Claims Process
Malfunction Claims Allowed 2 total claims per year (out of warranty) 2 total claims per year Unlimited Unlimited 0
Damage Claims Allowed 2 total claims per year 2 total claims per year 2 1 Unlimited
Theft Claims Allowed 2 total claims per year 2 total claims per year 0 0 Unlimited
Loss Claims Allowed 2 total claims per year 2 total claims per year 0 0 0
Consumer & Agency Ratings
ResellerRatings.com N/A N/A N/A 9.85 (of 10) N/A
Epinions.com N/A N/A N/A 4.5 (of 5) N/A
Google Products N/A N/A N/A 5.0 (of 5) N/A
Nextag N/A N/A N/A 4.7 (of 5) N/A
BBB A+ A+ N/A A+ A+
Cost
Cost per Month $6.99 $9.99 $4.13 $4.13 $6.67
Malfunction Deductible $199 $0 $0 $0 N/A
Damage Deductible $199 $169-$199 $49 $50 $50
Theft Deductible $199 $169-$199 N/A N/A $50
Loss Deductible $199 $169-$199 N/A N/A N/A

Conclusion
At the end of the day, pick the plan / provider that makes you the most comfortable. As we've seen over the last few years, though, there's little reason to pay AT&T and Verizon's high costs for iPhone insurance and/or iPhone extended warranty coverage. Whichever you choose, we strongly recommended insuring your iPhone one way or another. Though you only paid $199-$299 for your shiny new iPhone 4S, replacing it at the unsubsidized price can put a big dent in your wallet.

For more info on the iPhone insurance and warranty providers above, please visit the following links:

Prices shown in table represent current best offers on 2-year coverage plans from all companies evaluated.

Comments

I googled applecare vs squaretrade vs worthavegroup and found this page. Glad to see a good discussion here. So many people just go by what the sales person selling the hardware recommends, but they are driven by commission.

I found this chart: http://www.codes4discount.com/iphone-4s-ipad-3-insurance-vs-warranty-comparison-chart-squaretrade-applecare-and-asurion-competition/

Similar data, but with a discount code I like the Worth Ave Group as the best option. Best value and most complete coverage in that they cover theft and natural disaster, too.

I went to www.esurranty.com when I found out the others didn't cover loss and theft of my iphone. The price was a lot less, the customer service was VERY helpful and the deductibles are far less as well. Not to mention that they state very clearly that they do NOT replace devices with refurbished phone.

I'm glad I found this. My AppleCare expired a couple of weeks ago, and now my battery is depleting unusually fast. I've had my phone for two years now, purchased new from AT&T. I wanted to see if I can find a warranty to cover the battery, since AppleCare is only good once and I can't renew.

Will I be able to get one of these warranties for this, does anyone know? I'm more concerned about damage and battery replacement than anything else, actually. I've never, ever dropped my device at all, and it looks like it just came out of the box.

I just don't want to pay Apple the battery replacement fee unless I absolutely have to.

In full disclosure, I work for a company called Protect Your Bubble. We're a new player in the US, after much success in UK.

Protect Your Bubble is one of the top insurers of mobile devices worldwide. We are passionate about educating consumers on our comprehensive smartphone and tablet insurance.

Typical warranty products do not cover Loss and Theft, which are major reasons someone would want to protect their device. For Protect Your Bubble, Loss and Theft made up the majority of all of our claims. We also cover accidental damage (including liquid damage).

Our plans are $7.99 a month for smartphones and $9.99 a month for tablets. The peace of mind is worth the cost.

For anyone interested, visit www.protectyourbubble.com.

In full disclosure, I work for a company called Protect Your Bubble. Consumers should consider purchasing iPhone insurance once the device is available.

Typical warranty products do not cover Loss and Theft, which are major reasons someone would want to protect their device. For Protect Your Bubble, Loss and Theft made up the majority of all of our claims. We also cover accidental damage (including liquid damage). Our plans are $7.99 a month for smartphones.

For anyone interested, visit http://us.protectyourbubble.com/gadget-insurance/iphone-insurance/?ch=PR&WXZ=BAS&PTR=Vocus