How does credit card cell phone protection work?

Quick insights

• Cell phone insurance typically protects your mobile device from theft or damage and may also cover loss or mechanical failure.
• This protection is usually available for a monthly charge through your mobile carrier or a similar benefit may be available with certain rewards credit cards.
• You’ll likely need to pay a deductible if you file a claim through any cell phone protection plan.

Cell phones can be a big expense, and it’s hard to live without one. Perhaps that’s why many people feel cell phone protection is a good investment. When you crack your screen or accidentally drop your device in water, cell phone protection plans may allow you to avoid the financial strain of replacing your smartphone due to these potentially eligible covered losses.

Here are some things you may want to know about how to protect your mobile device.

What is cell phone insurance?

Cell phone insurance covers eligible repairs to your mobile device or its replacement for a monthly premium. With the high cost of smartphones and the potential for these devices to sustain damage, this protection may be beneficial.

You can purchase this coverage through your cell phone carrier in exchange for a monthly charge, or if you have a rewards credit card, it’s possible you already have cell phone protection as a benefit. It’s typically offered alongside benefits like travel and purchase related benefits, car rental insurance and purchase protection.

If you think the cell phone protection provided through your credit card offers sufficient coverage, it could be possible to cancel your carrier’s insurance plan and eliminate this monthly charge from your cell phone bill. Review the policy and make sure it meets your coverage needs before getting rid of your carrier’s cell phone protection plan.

How cell phone protection works with a credit card

If your card offers cell phone protection, you’re usually eligible for this protection if you pay your monthly cell phone bill with your credit card. If you have a family plan, it’s common for this protection to apply to all phones on the plan.

What’s covered can vary across policies. In many policies, you may find that the insurer will reimburse you for theft or eligible damage to your phone. Lost phones are less commonly covered. Some policies may exclude certain damages, such as cracked screens. Additionally, cell phone insurance typically won’t pay for anything normally covered under a manufacturer’s warranty, such as electronic mechanical failure or the inability to charge.

These policies often place limits on how much is covered for a claim and how many claims are allowed within a year. Since policies can differ, your card’s guide to benefits likely shows exact terms.

Cell phone protection through your credit card is often a form of secondary coverage. That means that if you have this type of coverage through another policy, it applies first before any protection that comes with a credit card. If you don’t have any other policies, cell phone protection may act as primary coverage.

If you think you have a covered loss, you’ll generally need to file a claim and submit supporting documentation. If your claim is approved, any applicable deductible will be subtracted from the amount you paid to replace or repair your cell phone.

If you’re interested in this benefit, some Chase credit cards offer cell phone protection, including Chase Freedom Flex^®, Chase Ink Business Preferred^® and Chase Ink Business Premier^®. Keep in mind that some of these credit cards have an annual fee.

How to file a claim for your cell phone

Follow your credit card issuer’s instructions for where to file a claim. You may be directed to the insurance provider’s site. You may also be able to file a claim by phone.

Here’s some documentation the insurer may ask you to provide:

• Proof that you paid your last cell phone bill with your credit card
• Police report
• Receipts for repairs 

Keep in mind that you could be asked to submit additional documents to support your claim.

Credit card cell phone insurance and deductibles

Whether you have cell phone insurance through your credit card or mobile carrier, there’s a good chance it includes a deductible. A deductible is a small portion of the cost that will be subtracted from your claim payment. Deductibles differ, but they commonly range between $25 to $200.

In summary

Cell phone insurance may protect your mobile device against eligible damage and theft. You may be able to get this coverage for a monthly fee through your mobile carrier or as a perk through certain credit cards, which may come with an annual fee.