Warranty Versus Insurance for Phones, Tablets and More

‘Warranty’ and ‘Insurance’ are two words that are often used interchangeably. For example, you might see AppleCare insurance, TV warranty and a laptop protection plan. But are they really the same thing? If not, what’s the difference between a warranty versus insurance?

What’s the Difference?

To begin, warranty and insurance are similar, but they are not the same. Insurance is a policy usually offered by a third party. An insurance policy does not come with the purchase of a smartphone; it must be purchased separately. Alternately, a manufacturer warranty is a contract that protects the device for a specified period of time. A 90-day to one-year manufacturer warranty is typically provided with the purchase of a new electronic device.
In addition to a manufacturer warranty, an extended warranty can be purchased to make the warranty last for a longer period of time. Accidental damage protection is frequently offered, which covers accidents such as drops and spills. Additionally, warranties do not cover loss and theft, but most insurance policies do.

Price Comparison Between a Phone Warranty and Phone Insurance

Upsie AT&T T-Mobile Verizon
Type Warranty Insurance Insurance Insurance
Coverage Term 2-Year 2-Year 2-Year 2-Year
Price $9.99 per month $408 $336 $264
Deductible $0-149 $49-299 $29-99 $29-249
This price comparison is for an Apple iPhone 12 priced at $829. As you can see from the chart, Upsie smartphone warranties cost significantly less than AT&T insurance, T-Mobile (Sprint) insurance and Verizon insurance. For instance, Upsie costs $239.76 over two years for the plan. That's $168.24 less than paying for the AT&T smartphone insurance plan.

What is a Seller Warranty?

A seller warranty is a guarantee that a device is in the condition advertised by the seller. These warranties typically last 30-days and are offered for used or refurbished devices. For example, used devices purchased on eBay, Swappa or Amazon should come with a seller warranty. If you are planning to purchase a used or refurbished device, it must be in good working condition in order to protect it with Upsie.

Why Does Upsie Offer Warranties and Not Insurance?

Upsie offers warranties rather than insurance to keep plan costs down. If loss and theft was covered, it would raise plan prices from the insurance carriers, which would then force Upsie to raise their warranty costs. Additionally, according to Consumer Reports, only 2% of people acquire a new phone due to loss or theft. Upsie would rather keep prices low for the 98% of people who break their phones rather than raise prices to cover the other 2% of people.

What else does Upsie offer warranty protection for?

Upsie can protect almost any electronic device sold and purchased in the United States. Some common categories are smartphones, tablets, laptops and TV’s. Upsie also protects:
  • Appliances
  • Smartwatches
  • Cameras
  • Headphones and Earbuds
  • Video game consoles
  • Fitness machines
  • Outdoor tools
  • And more

Warranty Protection Makes Financial and Environmental Sense

If you’re one of the 72% of people who have broken a phone, make sure to get your new one protected. In fact, make sure to get any new electronic device protected. According to The World Counts, we produce 40 million tons of electronic waste worldwide per year, or the equivalent of throwing away 800 laptops per second. A lot of this waste comes from people choosing to replace rather than repair their electronic devices.
If consumers like yourself choose to protect electronic devices with warranties, we can dramatically reduce electronic waste, as well as save you money. Check out this table outlining the cost of a screen repair for a laptop priced at $800 according to Thumbtack:
2-Year Warranty Deductible Repair Cost Total Price Cost Difference
Upsie $121.99 $25 $0 $146.99 $277.01 Savings
Repair Shop $0 $0 $424 $424 $277.01 Spent
Now, if you would rather recycle and replace your device when it breaks, you’re out the cost of an entirely new device. In the example of the laptop screen repair, you would save $664.99 with warranty protection over replacing it out of pocket. Who doesn’t want to save money?

Warranty Protection Makes Practical Sense

Do you have kids with sticky fingers? Maybe you like to travel and take selfies? Or perhaps you work in construction or manufacturing? Not only does a warranty make sense financially, it makes a lot of sense for anyone who wants peace of mind from life's little accidents.
Say you bought a Samsung warranty for your new smartphone from Upsie. A couple months later, you go on a nice family vacation to the beach. While playing with your kids, your phone falls out of your pocket and gets sand/water damage. This scenario could be catastrophic because we rely so heavily on our smartphones these days, especially on vacation. However, with Upsie, simply call the 24/7/365 claims line. They will locate a repair shop close to you so you can take your phone in same day to get it repaired. Simply pay the small deductible price and you're good to go.

How can I get an Upsie warranty?

If you want to protect your tech with Upsie, you’re making a great choice. You can purchase an Upsie warranty directly on their website. Simply select the product you want to protect and check out. Upsie plans are easy to purchase and even easier to use when you need to make a claim.
So, if you have new tech, be sure to get it protected. If you’re looking to protect your phone from accidental damage, consider getting a lower priced smartphone warranty plan. Alternately, if you’re looking for loss and theft protection, consider getting a cell phone insurance plan.

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* This article is over 6 months old and may or may not be updated.