Breaking your phone — or having it stolen — is a terrible experience, particularly given the high repair and replacement prices. While some cellular carriers and insurance firms sell mobile phone insurance, the rates may be costly.
What is mobile phone protection with a credit card?
If you bought a phone brand new with your credit card, you might already be covered for damage or theft for up to 120 days.
The protection provided by a credit card for a mobile phone is unique. When you use the card to pay your monthly account, you’ll receive free coverage that may cover specific sorts of damage or theft. The card’s restrictions vary, but you’ll typically pay a deductible and be protected up to a set amount per claim and per year.
How does mobile phone insurance using a credit card work?
For complete information and exclusions, check your card’s benefits handbook.
Keep these terms in mind:
You must pay your phone bill with the card that gives coverage – Typically, you must pay your account in full with the card, and some plans only kick in once the previous month’s payment has been paid.
The principal cardholder’s mobile phone bill is usually covered, although extra lines on the same account may also be covered.
Most cards will not cover your phone if it is lost or “mysteriously vanishes” or for minor damage that does not impede its operation.
You’ll have to pay a deductible – Before the coverage kicks in, you’ll often have to pay a modest deductible ($25 to $100, depending on the card).
If you have another policy that will cover your loss, such as homeowner’s or renter’s insurance, you’ll have to file a claim with that policy first; credit card insurance will only pay what isn’t covered by your primary policy.
How to Make the Most of Your Credit Card Coverage
If you need to submit a claim, you may call the number on the back of your card or by contacting the benefits administrator (for further information, see your card’s benefits handbook). You may make a claim online with certain institutions.
Documents you may need to make a credit card mobile phone insurance claim
- Your credit card statement indicates that you used the card to pay for your whole phone bill.
- a copy of the most recent billing statement from your mobile phone service provider
- a copy of your phone’s original purchase receipt or confirmation that the phone is presently connected to your wireless account
- composition of your insurance claim to your homeowner’s, renter’s, car, or wireless provider (if applicable)
- A copy of the repair estimate and images of the damage if the claim is for damage.
- A copy of the police report if the claim is for theft (usually filed within 48 hours of the incident)