AT&T to offer iPhone owners $5-a-month insurance plan

iPhone accident
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iPhone accidentClumsy iPhone users might want to check with AT&T on July 17, when the company will begin offering insurance plans to replace their devices in case of theft or an unfortunate accident like dropping the phone in a puddle.

The new plan will be managed by Asurion and cost $5 per month with a $50 or $125 non-refundable deductible, depending on iPhone model. AT&T previously offered an iPhone insurance plan for $12 a month with a deductible up to $199, depending on device model.

Comparably, Verizon offers a $7-a-month plan with a deductible up to $199. There’s also the popular AppleCare plan from Apple that costs a flat $69, but it does not cover loss, theft, or water damage.

It’s arguable whether the plan will be truly useful to AT&T customers, especially with the relatively steep $125 deductible for newer iPhones, which is not that much less than the $200 with-contract purchase price. However, if you have a history of breaking or losing your smartphone, and you’ve still got some time to go in your contract, this plan might be for you.

Photo via Patrick Hoesly

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