Should You Buy AppleCare Plus or Get Phone Insurance? We Do the Math
We compare whether Apple's plans or your wireless carrier's insurance are the better value.
Losing access to your phone -- whether it gets lost, stolen or broken -- feels like quickly getting cut off from the rest of the world. I learned this the hard way when I lost my phone while riding a roller coaster, and the staff let me know the chances of it being recovered were slim to none. At the time, I had a cell phone insurance plan through my wireless carrier. That plan allowed me to pay a deductible fee to replace the phone, saving me hundreds of dollars compared to having to buy a brand-new device.
Now, there are several options for insurance to protect your device from damage or loss. On top of that, Apple makes it very easy to set up the Find My app for free, which should allow you to track your phone down in most situations including when it is turned off. That said, for slightly more money you can opt for either an AppleCare Plus plan or a phone insurance plan through your wireless carrier that covers theft or loss incidents too.
But what's the main difference between these phone insurance plans, and which one will save you the most money? For CNET's We Do the Math, we took a closer look at both kinds of programs, comparing AppleCare Plus to Verizon, T-Mobile and AT&T's respective phone insurance plans to determine which one is best for you.
While AppleCare Plus is typically the cheapest option, another may better fit your needs and save you more money in the long run. (For more We Do the Math, check out if streaming is really cheaper than cable, and if Xbox Game Pass costs less than buying the games.)
And just a note: You should not sign up for both AppleCare Plus and your wireless carrier insurance. It can be easy to do so by accident. I was once erroneously signed up for T-Mobile's Protection 360 plan for my Apple Watch SE when I added it as a new line to my account, resulting in a $13 charge that was initially placed on my bill.
That extra charge was eventually refunded after making it clear to customer service that I never signed up for the service. As a precaution, keep an eye out for any similar mistakes when signing up for service at any wireless carrier.
AppleCare Plus: When you want Apple to handle everything
When you buy an iPhone, AppleCare Plus will be heavily advertised as a protection option. You can sign up directly from your phone's settings menu for 60 days after you purchase the device.
The benefits of going with AppleCare Plus come down to whether you'd prefer to work with Apple over your carrier should anything happen to your iPhone. If you live near an Apple retail store, you can use that location or a provider authorized by Apple for local assistance. Otherwise, you'll work with Apple's customer support team to arrange mail-away repairs.
AppleCare Plus plans come in two varieties: A base plan that covers device repairs, and a slightly more expensive one that covers theft along with loss. The actual cost of your plan varies based on the type of iPhone you own and whether you decide to buy a two-year plan or go monthly.
Under the current AppleCare Plus with Theft and Loss plans, a monthly plan for an iPhone 14 Pro or an iPhone 14 Pro Max costs $13.49 per month, or $269 over two years. For an iPhone 14 Plus, you'll pay $12.49 a month or $249 for two years. The base iPhone 14, iPhone 13, iPhone 13 Mini and iPhone 12 are $11.49 per month, or $219 for two years. And the cheapest is the iPhone SE at $7.49 per month and $149 for two years.
If you don't need Theft and Loss coverage and are only interested in phone repairs, AppleCare Plus prices are slightly cheaper. The iPhone 14 Pro and Pro Max plans are $10 per month or $199 for two years. The iPhone 14 Plus is $9 per month or $179 for two years. The base iPhone 14, 13, 12 and 13 Mini are $8 per month or $149 for two years. And the iPhone SE comes in at $4 per month or $79 for two years.
Both types of AppleCare Plus plans cover unlimited repairs for accidental damage to the iPhone itself, the battery inside of the iPhone and the included USB-C to Lightning cable. You should note that a repair will still incur a service fee or deductible. These costs range from $29 for screen or back glass repairs to $99 for most other accidental damage incidents or $149 to replace a stolen device.
The plans also include customer support for iOS issues, including assistance using iOS, help connecting to Wi-Fi and questions about other Apple services like FaceTime.
AppleCare Plus is also included with the iPhone Upgrade Program, Apple's monthly payment program that allows for yearly trade-ins toward the next year's device. Under that program, you'll either pay for your phone over the course of 24 months or make 12 payments to upgrade early. This begins at $39.50 per month for the iPhone 14 and costs as much as $74.91 per month for the iPhone 14 Pro Max with 1TB of storage.
The most obvious downside to relying on AppleCare Plus is that Apple's plans focus solely on the phone itself, with limited access to supporting you through changes to your wireless service. If you would prefer to work with your wireless provider on all things pertaining to your device, carriers themselves also offer a series of insurance options that provide comparable coverage for repairs, theft and loss.
Phone insurance from your wireless provider
Verizon, T-Mobile and AT&T all offer phone insurance plans similar to AppleCare Plus -- and sometimes will even process your repair through Apple. The wireless carriers also have multidevice insurance options, which allow you to bundle together coverage for other devices like a cellular-connected smartwatch or tablet.
Some carriers include additional benefits beyond just repair and replacement services. For instance, the program could include subscriptions to security software or a hardware upgrade option.
Verizon Wireless protection plans are getting better in April
Verizon includes an extensive list of device insurance and phone protection plans, but its best offerings aren't arriving until April 27. Starting at that date, the carrier will reduce or eliminate some of the service fees associated with device repair and add data recovery services (more on that below). Existing plans and prices will remain the same.
The sheer number of paths you can take for device protection at Verizon will vary. The most basic is the Wireless Phone Protection plan, which covers lost, stolen or damaged devices. The step-up Total Equipment Coverage plan includes extended warranty coverage. And the most expensive insurance packages are Verizon's Mobile Protect plans, which can be purchased for a single device or in a multidevice bundle for three to 10 devices.
The Mobile Protect plans include the carrier's Mobile Secure apps for services like identity theft monitoring and blocking robocalls. Also included is access to Verizon's Tech Coach support team, meant for help with device setup, optimization and ongoing support.
The monthly rates are roughly the same across most recent iPhone models, starting at $7.25 per month for Wireless Phone Protection. This goes up to $11.40 per month for the Total Equipment Coverage plan, $17 per month for Verizon Mobile Protect Single Device and $50 per month for Verizon Mobile Protect Multi-Device. For the latter, each additional line after the first three devices will cost another $11.40.
Deductibles however vary between models, with the iPhone SE costing $129 per incident and the iPhone 14 Pro Max reaching $249 per incident. Both deductibles are substantially cheaper than buying a new phone, but they are still fairly expensive. Starting April 27, Verizon's Mobile Protect plan is reducing deductibles to $99 and removing the screen repair deductible. The cheaper Wireless Phone Protection plan will continue to offer higher deductible prices for loss and theft after April 27. But that plan will also offer the $99 deductible for damage, along with including cracked screen repair for no additional cost.
If you have a particular habit of breaking your screen regularly, Verizon's plans could be appealing after April 27 when that service is essentially made free. The multidevice plans are also notable since they include coverage for smartwatches and tablets in addition to phones. However, if your primary concern is device recovery after accidental damage beyond a cracked screen or a theft, the AppleCare Plus plans appear to be cheaper on both the monthly fee price and the deductible price.
2023-03-13 20:47:18
