Cell Phone Warranty vs Cell Phone InsuranceDec 12, 2019

‘Warranty’ and ‘Insurance’ are two words that are often used interchangeably. But are they the same thing? If not, what’s the difference?

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 cell phone warranty is a contract that protects the phone for a specified period of time. A one-year manufacturer warranty is typically provided with the purchase of a new smartphone.
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 insurance policies do.

Price Comparison Between a Phone Warranty and Phone Insurance


Upsie AT&T Sprint Verizon
Type Warranty Insurance Insurance Insurance
Coverage Term 2-Year 2-Year 2-Year 2-Year
Price $89.99 $215.76 $360 $264
Deductible $75 $229 $225 $199.99


This price comparison is for an Apple iPhone 11. As you can see from the chart, Upsie smartphone warranties cost significantly less than AT&T insurance, Sprint insurance and Verizon insurance. For instance, Upsie costs $164.99 for the plan plus one repair. That’s $50.77 less than paying for only the AT&T smartphone insurance plan.

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.

Warranty Protection Makes Financial Sense

If you’re one of the 72% of people who have broken a phone, make sure to get your new one protected. A repair with a warranty costs significantly less than a repair out of pocket. For instance, take a look at this chart for a Google Pixel warranty versus out of pocket repair:
2-Year Warranty Deductible Repair Cost Total Price Cost Difference
Upsie $89.99 $75 $0 $164.99 -$259.01
Repair Shop $0 $0 $424 $424 +$259.01
To sum up, Upsie will save you a ton of money if your smartphone breaks. Aside from phone warranties, Upsie also offers warranty protection for all your tech. Some examples are tablets, laptops, smart watches and more. Learn more about why a warranty makes financial sense.

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 get sand/water damage. This scenario could be catastrophic because we relay 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.
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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