Types of Insurance to Consider – May 20, 2020

The below are insurance for items like cell phones, computers, laptops, appliances, and travel. They do not cover medical, home owners/renter’s, vehicle, or similar types of insurance policies.

In all of the below examples, I would compare the insurance cost to the replacement cost and look at alternative insurance options. In some cases, like cell phones, there are limits on how many times a year you can get a replacement. I have a friend who goes through 3 cell phones/year due to letting their children play with the phone, but their plan only lets it be replaced twice/year. Every other year, the cell company offers cheap upgrades to newer models.

When I first purchased a cell phone, and for many years after the first purchase, I had cell phone insurance, it was fairly cheap and deductibles were reasonable. I gave up cell phone insurance over a decade ago, closer to two decades now. The monthly premium went up and the deductibles became outrageous. With my current phones, it’s cheaper to replace my cell phone with a new cell phone than it is to pay cell phone insurance for a year and pay the deductible. I don’t go for high-end cell phones as in $250 – $1,000+. In cases like those I would check out how much the insurance costs compared to replacement costs if I didn’t have insurance. I would consider good third party insurance options as well since those tend to be much cheaper.

For travel insurance, I would compare the price of the insurance to the price of the trip and see what alternative insurance options were out there. If it’s a fairly cheap trip, I may forgo insurance unless the insurance options were cheap.

For computers, in the past I have used extended warranties if they were reasonably priced for what I paid for the computer. In one case, I spent $90 for a second year warranty and the day before the extended warranty expired, there was a motherboard crash. That saved me $500 in replacement parts. These days, some third party companies offer cheaper extended warranties for computers and laptops than what I can get from the computer manufacturer. In those cases, I would go with the third party vendor unless there was a better reason to go with the computer manufacturer warranty.

For vehicles, I have never purchased a new car, but some local used car dealerships offer warranty deals that aren’t priced too high and cover major repairs. If I ever get a new car, I would look at what was offered versus the cost to see if it was worth the cost.

With appliances, TVs, etc., I would see how long the basic warranty period lasted and how much an extended warranty costs compared to how long the warranty period was extended.



About Wichita Genealogist

Originally from Gulfport, Mississippi. Live in Wichita, Kansas now. I suffer Bipolar I, ultra-ultra rapid cycling, mixed episodes. Blog on a variety of topics - genealogy, DNA, mental health, among others. Let's collaborateDealspotr.com
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