Daily Dose of iQ: AT&T Offers iPhone Insurance

AT&T announced it will be offering customers a new insurance policy to protect their iPhone devices.

Due to start covering the iPhone on July 17, the company’s existing mobile insurance policy will offer coverage against loss, theft, accidental physical or liquid damage, and mechanical and/​or electrical failure after Apple’s warranty period expires,” wrote Lance Whitney of CNET News (July 5).

The new iPhone insurance costs $4.99 a month and requires a $50 or $125 deductible, depending on the model. AT&T will replace the phone by the following business day, but has a limit of two claims per year.

Whitney compares this insurance policy to:

  • AT&T’s iPhone insurance through Asurion: $11.99 per month with a deductible as high as $199, depending on the model.
  • Verizon Wireless’ iPhone insurance through Asurion: $6.99 per month with a deductible up to $199, depending on model.
  • Apple’s own AppleCare Protection Plan: a flat fee of $69.

By offering a competing insurance policy for iPhones, AT&T is yet another example of a strong trend: Carriers trying to capture additional profit through branded extended warranty offerings.

This seems similar to Sprint’s move a while back, when they launched their Total Equipment Protection policy (also through Asurion).

Verizon also offers Total Equipment Coverage, which combines Asurion’s protection with the Verizon Wireless Extended Warranty program.