Phone insurance is a fast- growing, large and lucrative market in US. Given the increased use of electronic devices, owners of smartphones that retail for $600 do not want to be caught without insurance if some mishap happens with the device. Statistics show that nearly two third of American are on Smartphones and the maturity of the US mobile market has made smartphones industry so popular. Because of its considerable consumption the American market has given rise to diverse mobile devices and numerous smartphone care options. With the increased value of smartphones, US market has been dominated with insurance protection plan. Research has shown that global smartphone insurance market is expected to grow from $31 billion in 2015 to $48 billion by the end of the decade. These insurance plans provide additional protection like covering hardware issue, software malfunctioning, accidental damage and replacement of stolen device.
Smartphone Insurance Plan in US
The popularity of smartphone protection plan in US is primarily because of the high cost of smartphone devices. According to recent data related to the US Smartphone market, 40% of the smartphones are iPhones and is one of the most expensive devices in the market. About 45% of high end, high demand and highly popular smartphone devices are insured. Hence insuring them is a better option and hence most of owners purchase insurance for their devices.
Players of the smartphone industry have their own protection plan be it OEMs, wireless carriers or insurance providers. OEM Protection Plan – Apple and Samsung’s OEM protection plan range from one year warranty to two years of device coverage. These cover mechanical and electrical breakdowns after manufacturer’s warranty expires and also accidental damages. Carrier Protecting Plan – These plans cover the gaps which OEM warranties do not cover like accident prone damage, device lost/theft or issues that occur after the manufacturer warranty expires. Third Party Protection Plan – Third Party providers like eGranary offer independent insurance plans focus on hardware protection like water damage or broken display. Theft and loss of device are also covered in the plan.
Hence to protect this precious belonging, the smartphone insurance industry is picking up speedily in US. Insurance plan has become more competitive and customizable. Mobile companies in advanced countries like US have moved towards trade-ins and upgrades as compared to traditional repairs primarily to provide a quicker turnaround time to their customers.
Smartphone insurers, OEMs and carriers need to improve their offerings as they are facing public pressure in the area of speed of processing claims. Today consumers expect additional value for your insurance programs. Protection against smartphone damage, malfunctioning and theft/loss are core of any program but customers also look for additional features like data back up and software related services.
With a rise in mobile phone usage, there is a growing need for mobile insurance. Smartphone is no longer a luxurious item but has become a necessity. With the growing smartphone industry, the insurance providers are adapting to the customer needs by creating tailored and specific plans for their valued customers. Much like smartphones, protection plans have matured over the years. There is no perfect cell phone insurance solution. But we wish there was a product that covered everything – theft, loss, destruction – with a cheap premium and low deductible that replaces your phone with no hassle. It is matter of weighing your risk against the cost of coverage. If you really feel that your phone will be stolen or would be lost, then insurance is worth it, for your peace of mind.