Over the holidays, Santa upgraded our ever so slightly outdated iPhone 5s to iPhone 8 and iPhone X. While I REALLY appreciated the upgrade, jolly old St. Nick didn’t include any protection when he delivered these upgrades. After watching a few of the “dropped iPhone X” demonstrations on YouTube, with complete horror and mounting anxiety, I decided that I needed to look into some protection for the latest additions to our technological lives. If you’re also considering your coverage options, here’s what I found.

When comparing the AT&T iPhone insurance (our carrier) and AppleCare+, it seemed that AppleCare+ might be the cheaper option both in overall price (over the 2 year coverage period) and in charges for screen replacements and major damage. AppleCare+ will replace a screen for $29 as opposed to the $89 it will cost on the carrier insurance plan. And AppleCare+ will replace your damaged phone for $99 as opposed to the $225 (for the 8) or $299 (for the X) deductible that the carrier plan charges. Sounds like a winner, right? Well, don’t decide yet because there is another big factor that might tip the scale the other way.

While AppleCare+ offers much lower deductibles, it does NOT cover lost or stolen phones. The AT&T iPhone insurance does cover these additional risks. That might be an important point for many people to consider because, last year, one major city alone averaged 39 stolen phone reports a day. So, it’s definitely something to factor into your decision.

You might assume that you’re already covered for a theft or loss under your homeowner’s insurance, making the additional lost or stolen coverage redundant. Think again and check with your insurance provider. I was informed by our insurance provider (State Farm) that they do not cover iPhones (not even with a separate electronics rider) and that this was the case with most homeowners policies because iPhones are at such a high risk of being lost, stolen or destroyed. That meant it was back to AppleCare+ vs AT&T’s iPhone coverage.

I’ve outlined below the breakdown of a couple of options to cover your iPhone 8 or iPhone X and I’ve highlighted some pros and cons for each option. This information is based on the information that I gathered as of today. It could change. Please check with your particular provider or with Apple for the most up to date information. This information is meant only as a guideline and to give you points to consider when deciding what coverage is best for you.

Apple Coverage

Apple provides Applecare+ for $199 (iPhone x) or $129 (iPhone 8):
AppleCare+ provides repair or replacement coverage, both parts and labor, from Apple-authorized technicians. Coverage includes the following:

  • Your iPhone
  • Battery
  • Included earphones and accessories
  • Coverage for up to two incidents of accidental damage, each subject to a service fee of $29 for screen damage, or $99 for any other damage, plus applicable tax (those costs are the same whether it is an iPhone 8 or an iPhone X)
  • 24/7 priority access to Apple experts via chat or phone
  • Mail-in repair: Mail in your iPhone using a prepaid shipping box provided by Apple
  • Carry-in repair: Take your iPhone to an Apple Retail Store or other Apple Authorized Service Provider
  • Express Replacement Service

Carrier coverage (based on our carrier – AT&T):

AT&T offers Mobile Insurance for $8.99/mo per enrolled number:

  • Protection against, loss, theft, damage, and out-of-warranty malfunction
  • Replacement as soon as the next-day
  • As soon as same-day screen repair for eligible devices in select areas (Newer device models may not be eligible.)
  • Limit of two claims in 12 consecutive months. The maximum value per claim is $1500.
  • Claims may be fulfilled with new, AT&T Certified Restored or other models of like kind and quality. Colors, features and accessory compatibility are not guaranteed.
  • Cancellation Policy: You may cancel your optional insurance coverage at any time and receive a refund of your unearned monthly premium/charge.
  • They may cancel or change terms by giving you prior written notice as required by law. Any unearned premium/charge will be refunded to you.
  • Call to file a claim within 60 days of a covered event. After your claim is approved, you’ll receive your replacement phone or device as soon as the next day.
  • Declining deductibles—save 25% to 50% off the standard deductible if claim-free for 6 months or more.
    Standard Deductible $225.00 (8) $299.00 (X); 6 mo w/no claim $168.00 (8) $224.00 (X); 12 mo w/no claim $112.00 (8) $149.00 (X)
    Screen repair $89.00 (both 8 and X)

AT&T also offers a Mobile Protection Pack for $11.99/mo per enrolled number. It’s basically the same as the Mobile Insurance but it adds Tech support and 50GB of secure photo and video storage through the AT&T storage app. Unless you need a back up for your photos. It doesn’t really offer much other than extending the tech support that you would normally receive. Every iPhone already comes with one year of hardware repair coverage through its limited warranty and up to 90 days of complimentary support. So the Mobile Protection Pack doesn’t seem to add much to what you would already be getting for $3.00 less a month with the Mobile Insurance. But, if you’ll use the tech support and the photo backup, the extra $3 would seem to make it worthwhile.

Here’s another thing to consider. The AT&T insurance plans are provided through Asurion. I have not had any experience with this company before so I checked them out online. After doing this, I read some concerns that do make me a little wary. I have no verification of the following claims. I am just reporting what I have seen posted on various boards. Here are some of the complaints…

  • Arbitrary increases to their monthly rate
  • Arbitrarily doubled the replacement cost of broken phone (despite what it says in the contract)
  • Will only replace a phone if they happen to have that phone in stock. For a period, they were having trouble keeping newer models in stock, this resulted in them sending a check for “fair market value” instead of a replacement,
  • They have sent techs who admit that they have never done screen replacements to do that type of repair
  • Lack of follow through on promises
  • Poor quality of replacement phones.
  • Poor customer service.

That all said, a quick check of their Better Business Bureau profile does show an A+ rating. But if you look through the negative comments, there are a whole lot of new ones that are all pretty recent. And they have a 48% positive/50% negative rating. I’d recommend that you do your own independent research on this provider (or whatever one your carrier uses) if you choose to go this route.

UPDATE: From esurranty on the AT&T support site – ” www.esurranty.com covers loss, theft, accidental damage, mechanical malfunctions, water/liquid damage and is starts at $69/year. The deductibles are right there with Asurion but all repairs are done by Apple and have a Apple repair ID so you can contact Apple and verify the repair and all replacements come from Apple as well. ” Ask questions about who is covering your phone if you go with the carrier provider.

Pros and Cons of each…

Both Options Include:
Repair or replacement coverage

Carrier Coverage (AT&T)

Pro: Also covers lost or stolen phones – AppleCare+ does not
Con: The replacement will likely be refurbished and may not be comparable

Pro: Monthly fee as opposed to a higher upfront cost
Con: Higher deductible cost for screen repair or replacement ($29 Apple vs $89 for screen, $99 Apple vs $299 for more severe damage/replacement)

Pro: You can choose to add or cancel your coverage at any time
Con: THEY can cancel or change terms (as long as they provide you with prior written notice)

Possible Con: You may experience service and quality issues with the insurance provider (the coverage is through Asurion for AT&T)

AppleCare+ Coverage

Pro: Much lower deductibles if damaged or destroyed ($29 Apple vs $89 for screen, $99 Apple vs $299 for more severe damage/replacement)
Con: Much higher upfront cost ($199 for iPhone X, $129 for iPhone 8)

Pro: You’re covered for 2 years from purchase date (but you have to add the coverage within 30 days of the purchase date)
Con: You’ve already paid for that 2 years of coverage, so if you upgrade sooner, you’re out of luck as you don’t get a pro-rated refund

Pro: Battery, earphones and accessories are covered

Pro: Coverage is through Apple and all work will be done by Apple-authorized technicians

That all said, I guess it really all boils down to whether or not you need the lost or stolen coverage. If you feel that you need this coverage, your carrier insurance is probably the way to go because you will likely not be able to find this type of coverage otherwise. If you feel lucky, but slightly accident-prone, AppleCare+ might be the best option for you. If you feel really, REALLY lucky, you can roll the dice, save some cash, and go with no coverage. If you decide to go that route, I would HIGHLY advise you invest in a REALLY good case for your phone because going the cheap route could cost you A LOT in the long run.

I hope you found this helpful. Good luck!