You probably don’t need to buy insurance for your cell phone if the phone itself doesn’t cost much. What about smartphones like Blackberry? Should I purchase a device protection plan for my smartphones? Smart phones are expensive without contract. Depending on the hardware specs, they can cost anywhere from $400 to $600. You can get a decent laptop with that much money these days.

Let’s take HTC DROID INCREDIBLE for example. It costs $599 without a service plan. So, what happens when it breaks after just a few months, and if you don’t have a Verizon mobile device protection plan? In that case you would have to pay $599 for the exact same phone. That’s a lot of money to pay for a new mobile phone. So, what can you do to protect your investment? Buy a smartphone protection plan from Verizon Wireless for $7.99 a month. I know that’s $2 more than the insurance you have to pay for a flip phone. But it’s a very fair deal. Here is the break down:

1. You pay $150 for the DROID Incredible with a new contract.
2. Opt in the mobile device protection service for $7.99/month
3. When your smartphone doesn’t work, file claim right away.
4. pay $89 deductible once the claim is approved.

Let’s say your new smartphone stop working on the 12th month. At that time you already pay $95.88 in total equipment protection fee. Add the $89 deductible you will end up paying $184.88 in total. That means for $184.88 you will be able to replace your broken smartphone with a new a refurbished one. That’s a very good deal consider the retail price for smartphone like HTC DROID INCREDIBLE costs $599.

I highly recommend getting a smartphone protection plan if you had a habit of losing or breaking your phone in the first 12 months. Otherwise, just be extra careful with your new phone. Good luck.