How Credit Cards and Cell Phone Insurance Are Related

Pennygem

Phone insurance options were limited up until recently, when credit card companies started to get in on the action. Here are a few things to keep in mind about this. PennyGem’s Johana Restrepo has more.

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00:00 (music)

00:03 Our cell phones might as well be a part of our bodies these days.

00:07 Almost everyone has broken their screen or phone entirely at least once and felt that moment of panic

00:13 because mobile phones, especially smartphones, are not cheap.

00:17 As a result, a lot of people wait more than three years to replace their phones according to NerdWallet.

00:23 Phone insurance options were limited up until recently when credit card companies started to get in on the action.

00:30 Companies like MasterCard, American Express, and even retail cards are offering these perks.

00:36 You just have to get the right card.

00:38 Most of the time, you'll have to do things like pay your bill with the credit card,

00:43 pay a deductible of anywhere between $25 and $50, and file paperwork.

00:48 Keep in mind that some cards don't cover lost phones, just damaged or stolen phones according to Business Insider.

00:56 Some damage, like a cracked screen, isn't always covered either.

01:00 Before opening a credit card account that offers smartphone coverage,

01:04 read the terms and conditions and make sure their policy works for you.

01:09 (music)

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