Student Survival Kits: Affordable Phone Insurance for Campus Life

It feels like yesterday when I was stuck rushing between lecture halls, paying an extra $75 for losing my dorm key, and frustrated the three Starbucks nearby were all crowded beyond belief. Constant movement and worrying about budget are common parts of college life. The possibility of losing your phone is awful, especially if you need to submit homework last minute.

So, phone insurance. Is it worth it for students? I’m going to spill the tea on the pros and cons of adding phone insurance to your student survival kit, and what red flags to beware when looking for phone insurance.

Why You Need Phone Insurance for College

Ongoing financial protection

Phone insurance is similar to meal plans, campus health insurance, and gym memberships. It’s a monthly (or yearly) payment that provides a persistent benefit.

Insurance in general is meant to provide peace of mind and act as a financial safety net. If an accident happens, college students don’t always have the necessary emergency funds. Having a phone is essential in today’s society. If you can’t keep up with updates, friends, events, internet… It’s tough. Phone insurance prevents that by helping you pay for necessary repairs and replacements. That way you can focus on your academics and social life.

Protects your studies

Students often use phones to take notes, record lectures, and submit assignments right before class. If a phone fails when you need it most, it can genuinely disrupt your academics. Unfortunately, not every teacher will be impressed if you tell them you can’t meet a deadline because your phone broke. It’s a little like your dog ate your homework in that sense.

Staying in touch

Phones are so essential for keeping in touch with your friends and keeping an active social life. It’s hard to arrange meetups and navigate new places if you don’t have a phone. Plus, if you’re going clubbing or partying without a phone, it can actually be a safety risk. You wouldn’t be able to easily call an Uber late at night.

How Phone Insurance Fits into a Student Survival Kit

Student life is expensive

Smartphones are expensive, especially the flagship ones. In some places, a smartphone costs more than a semester’s tuition, which is already expensive enough. It’s common to operate on tight budgets, limiting your ability to replace devices.

Standard warranty does not cover everything

With shared housing and crowded spaces, phones get lost and damaged all the time. Standard warranty does not cover lost or stolen phones! That is because the standard warranties that come with smartphones only cover manufacturer defects, like a malfunctioning screen. If you want accidental damage and loss coverage, you need a comprehensive phone insurance policy.

Frequent travel

If you’re a student who commutes via bus or train, phones can be easily stolen or lost. This is particularly true if you live in a big city–crime is usually higher in places with dense populations. Default warranties won’t cover theft because they only focus on mechanical failures.

Students who plan on joining study abroad programs also need some sort of travel insurance for their belongings and trip cancellation risks. Read our guide to insuring gadgets abroad for a deeper dive into what sort of travel insurance covers phones and other devices.

Statistics

Asurion did a study that showed 3 out of 10 teens damaged their cell phones, mainly at school during an 18 month period. This number shockingly rises to 5 in 10 college students damage their phones, according to a SquareTrade study.

20% of phones get broken at parties, bars, and clubs. The rest of the time, many phones are broken in libraries, classrooms, dorms, and at the gym.

All this means that it’s quite likely, though obviously not guaranteed, that you will damage your phone at some point during your school days. If it happens, it happens, and then you will be left with hefty bills and a damaged or missing phone. Insurance can essentially undo the accident and prevent a disruption to your studies and social life.

What Does Student Phone Insurance Cover

Businesses and workers have their own device insurance policies. It’s different for students with a tight budget, who are studying hard and trying to stay connected with everything that’s going on. Here are the main factors to consider when choosing student phone insurance.

Affordability

Students can’t be going around buying all the best insurance that costs hundreds of dollars a year. Student phone insurance is designed specifically for tight budgets. The monthly premiums are low, which means you can fit them in between your coffees.

Flexibility

Even if an annual plan is cheaper in the long run because of discounts, they are often inflexible and difficult to afford upfront for students. It’s better to have a flexible phone insurance plan that is semester-based or short-term.

Tailored Coverage

Student phone insurance plans need to cover the most common risks that can happen. Good options include coverage for:

• Accidental damage, like drops and spills
• Theft on campus or public transport
• Lost devices

Optional add-ons and features

Add-ons, endorsements, and riders are extras you can add to your insurance coverage. Add-ons can be useful if you have any special risks or belongings that you want covered under your phone insurance policy. Phone insurance companies often offer plans that cover other devices, such as laptops and tablets that are crucial for studying.

The best phone insurance companies may also offer extra benefits. If any of these features entice you, know that they are available at some insurers:

• Unlimited claims in a year
• Multi-device plans
• No reimbursement limits
• Same-day or next-day replacements
• 24/7 real person emergency assistance hotlines
• Savings when you shop elsewhere

Affordable Options: What to Look For

Let’s go over some pro tips on how to find student-friendly insurance plans.

The right coverage scope

Make sure you’re choosing insurance plans or protective warranties that cover the most common risks for students. The policies should explicitly state that they cover:

Accidental damages: Dropped phones, cracked screens, and other common damage. Liquid damages, like spills, should also be covered. I’ve certainly spilled coffee on my phone more than once.

Special accidental damage: Work in a lab? You might want to ask your insurance agent if lab accidents that break your phone can get covered.

Loss coverage: Misplacing your phone is really unfortunate, but when it happens, it’s expensive and not usually covered by standard policies. The clumsy and forgetful should try to get a device insurance plan with loss coverage.

Discounts through universities or student unions

Check with your university’s clubs, financial department, and student unions to see if there are any insurance discounts or affordable device deals.

Bundled deals with family or group plans

If you have any family or friends, ask them if they’re looking for device insurance right now too. Often, there are bundled deals that let you insure multiple people’s devices for a more affordable cost. These may even come with group phone plans and data plans.

If you live in a family with teens, you can check out our guide on Best Phone Insurance for Families with Teens.

Policies with no hidden fees

Hidden fees or long term contracts are dangerous for students. Always double check your policy details, pricing, and term durations before you purchase insurance. If it looks too good to be true, there’s probably a catch somewhere, like you need to pay upfront or you need to purchase a long-term plan. If that’s worth the savings to you, then it’s not a problem.

A reasonable deductible

The deductible of an insurance policy is how much risk you share, AKA the amount you pay out-of-pocket before the insurance kicks in to cover the rest. If you have a $250 deductible but your cracked screen costs $200 to repair, your insurance won’t cover a penny.

In general, you want a lower deductible for phone insurance policies. However, a low deductible can also increase your premium, which may be particularly challenging for students with minimal or no income.

So what’s the other side? Well, a high deductible makes your monthly insurance payments cheaper. The insurance plan will cover repairs and replacements on the more expensive, catastrophic side, but not cheap, small repairs.

Examples of flexible providers or student-targeted policies

Here are some of the most useful phone and device insurance plans for students.

AKKO:

Very convenient and affordable. AKKO is one of the best phone insurance companies in the US.

• First month free
• Covers new, used, and refurbished devices
• All-inclusive plan can cover phone + 25 additional items
• No annual reimbursement limits
• Coverage starts next day after 1st payment

5Devices:

Do you have 5 devices that need insurance? 5Devices can cover gaming consoles, wireless speakers, tablets, laptops, PCs, and more. The company is relatively new but provides excellent value.

• Covers up to 5 devices, pay for how much you want to protect
• 24/7 emergency assistance by a real human
• Flexible repair options
• Fast claims process

Challenges and Concerns

Risk vs actual costs

A major question we all have to ask ourselves throughout our lives is how much risk are we willing to take. Risk tolerance is necessary to consider when buying insurance. You could buy the best device insurance that covers everything under the sun, but it would likely cost thousands of dollars a year. Going into the wild with no insurance at all means if nothing happens, you save all the money. But if something does, you’ll be in a financial catastrophe.

Insurance doesn’t have to be all or nothing. Consider how much risk you are willing to take by looking at estimated costs of repair for your phone model.

Cost estimates

Let’s say you have an iPhone 15. Here are some estimated costs and how you should choose a deductible for your phone insurance plan.

• Cracked screen: ~$300
• Water damage: $50 to $500 depending on damage extent
• Replacement: Starts at $699

Trust issues

Is it worth it? Will insurance claims be honored? It depends on the insurer. Some companies are notorious for slow claims or frequent rejections. Check customer reviews, testimonials, and vlogs first.

The Future of Student Phone Insurance

Gamified insurance

Insurance companies are always looking for ways to reduce risks and be favored compared to their competitors. Interestingly, there has been a rise in gamified insurance. Similar to loyalty programs, gamified insurance rewards careful use with discounts and benefits.

Bundled “digital life insurance” packages

Buying ten different insurance policies before it’s back to school is unrealistic. Many students are already worried about tuition, classes, waitlists, social friends, and more. It’s stressful to look for specific policies.

Students are already getting bundled deals. You can expect more insurers to start offering bundled digital life insurance that includes:

• Phone insurance
• Device insurance
• Travel insurance for study abroad

Conclusion

Student phone insurance is a good financial safety net to consider. It helps you afford the cost of phone repairs and replacements, allowing you to focus on your studies and social life without stressful interruptions.

Students don’t usually need expensive phone insurance. Stick with an affordable insurance plan between $5 and $40 a month. That way you get insurance protection without breaking the bank. Invest in your academic and social life by checking out the best phone insurance policies today.