Do you know that Singapore has the highest smartphone penetration in the world? Apparently, 9 out of 10 Singaporeans have access to a smartphone, according to a survey done by Deloitte’s Global Technology, Media and Telecommunications team.Looking at how Singaporeans camped out despite the haze to queue for the new iPhone 6S, you can easily see our obsession with smartphones.
Here’s GET.com will show you if it’s really a good idea to get smartphone insurance.
The Rationale For A Phone Insurance
Smartphones are getting expensive. Let’s take, for example, the pricing for the new iPhone 6S. The basic 16GB model of the iPhone 6S is going for $568 under Singtel’s Combo 2 plan. This is $60 more than its predecessor under the same plan.
StarHub started selling the phone at $561 under a similar plan. Even without a mobile plan, the basic model of the iPhone 6S costs $1,048, $50 more than the previous model.
With smartphones being such an integral part of our lives and being widely exposed to the elements, it’s very easy to spoil the phone or subject it to wear and tear.
For this reason, buying insurance for your phone is similar to getting an extended warranty.
In fact, a survey conducted by American mobile device case maker OtterBox found that Singaporeans are a clumsy bunch, being 10 percent more likely to drop their smartphones on the floor or having them slipped from their hands compared to users from other countries.
What Does A Phone Insurance Cover?
Mobile phone insurance covers the cost of phone repairs or provides a mobile phone replacement when your phone is beyond repair. Depending on the service, the insurance might provide both repairs and replacements.
HL Assurance provides a MobileCare plan, an insurance that covers your phone in the event of accidental damage or liquid damage. It also covers the repair cost of a phone or gives a mobile phone replacement when your mobile phone is beyond repair. It costs $12.84 per month, but Watson’s members get exclusive discounts for a minimum 12-month coverage at $7.70 per month.
Singtel also offers a MobileSwop plan which costs $8 a month and lets you replace your mobile device. With the plan, you can make two swops or one replacement of your mobile device within 12 rolling months. However, do note that the swop is not free; be ready to pay $181 for a device that is retailing above $1000 and $532 for a replacement fee.
Alternatively, you might want to consider a home contents insurance, which provides a more comprehensive cover, such as the Home Protect360 provided by HL Assurance. Premiums are slightly higher at $240 per year or at a monthly installment of $17.20 because it covers much more than just a handphone.
Worldwide family personal accident coverage, medical expenses, home renovation, and worldwide personal belongings coverage are all-inclusive in one home insurance policy. It also insures your mobile phone, laptop, home appliances, jewelry and precious home items that belong to your children.
So should you consider getting phone insurance? I guess a lot depends on the type of phone you get (there’s no point in getting insurance if you have a cheap phone), as well as how clumsy you are.
If you find that getting mobile phone insurance is redundant, you should perhaps at least invest in proper casing/protection for your phone so that you do not live with a ‘spider-web’ screen.
This article is brought to you by GET.com.
Disclaimer: All info contained herein is intended for your general information only and is not a substitute for insurance advice. If you have a specific question, please consult our insurance experts at 6702 0202.