AT&T iPhone Insurance and Some Alternatives

Would you pay $13.99 for insurance on your iPhone? Based on some pictures of internal documents given to Boy Genius it may be coming soon. The cost seems a little steep if that was the only cost. But you would also have a big deductible on top of the monthly charge.

Here are the details:

• $13.99 a month via the iTunes App store billed monthly to your credit card on file with Apple
• Insurance from Asurion
• Deductible for an 8GB 3G is $99
• Deductible for a 32GB 3GS will be $199
• The service will be called MobileProtect

Like the Boy Genius said, this seems steep. Of course a brand new 3GS with 32GB of storage runs $699 without contract. So if you paid the $14 a month for 24 months and paid   the $199 deductible to replace your 32GB 3GS you would be saving only $164.

If you are fortunate enough to have just purchased your iPhone, or you plan to upgrade in June like many people will, you might do better to look into a SquareTrade warranty. It costs only $8 a month for 24 months or $96 for 2 years of coverage. They only have a $50 deductible. I got this coverage on my iPad when I bought it. You have only a short time after purchase to buy the insurance however.

A second alternative is Apple Care extended coverage. It extends your warranty to 2 years from the date of purchase. It must be purchased while under the original one year warranty and it costs $69.

Finally, you might want to check with your Home Owner’s policy. Some things might be covered by it. If not, ask about getting coverage for it. Some companies may let you have computer” insurance on a device like the iPhone for a reasonable cost.