The new iPhones are out, which means your phone is another model year older. That means it’s a good time to evaluate whether you still need to pay for a protection plan on your aging device, which can add hundreds of dollars to the cost of ownership.Experts say it’s likely time to cut the cord on that coverage.Apple’s iPhones don’t come cheap. The new iPhone 17 Pro Max can cost up to $2,000, which is why a lot of people make the call to buy insurance for their device. Apple’s plan is called AppleCare, while Samsung’s is Samsung Care Plus. But some experts say those plans might not be worth the money you’ll pay for them.”These plans are really bad deals for consumers,” said Kevin Brasler, executive editor at Consumers’ Checkbook, a nonprofit consumer organization. He adds that most extended warranties — on everything from cars to homes — generally aren’t worth the added cost.”They’re enormously profitable for the companies that sell them and for the insurance companies that back them, but they are way overpriced for the coverage that they provide,” Brasler said.Let’s consider an iPhone 13 Pro Max. Released in 2021, it originally came with a $1,099 price tag. But now that it’s four years old, Apple says that model of phone is only worth $320. AppleCare for it costs about $10 per month or $120 per year. Plus, most repairs still come with a deductible.At this point, it’s likely not worth continuing the AppleCare coverage.”They’re expensive plans,” Brasler said. “I mean, you have to pay several hundred dollars just for that added coverage. And then there’s also usually a deductible. Something goes wrong, you have to pay a certain amount just to get it fixed.”Here are some rules to remember. If your phone is paid off, it’s probably time to hang up on the coverage. Also, if your phone’s value has dropped enough that the yearly cost of a coverage plan is at least a quarter of the device’s value, cancel it. Finally, if something happened to your phone, would you just upgrade to a new device? That’s a sign to dump the coverage.A good overall rule: don’t pay for a protection plan on a phone for more than two years. At the absolute most, three years beyond a device’s release date is the longest you should continue to buy coverage.
The new iPhones are out, which means your phone is another model year older. That means it’s a good time to evaluate whether you still need to pay for a protection plan on your aging device, which can add hundreds of dollars to the cost of ownership.
Experts say it’s likely time to cut the cord on that coverage.
Apple’s iPhones don’t come cheap. The new iPhone 17 Pro Max can cost up to $2,000, which is why a lot of people make the call to buy insurance for their device. Apple’s plan is called AppleCare, while Samsung’s is Samsung Care Plus. But some experts say those plans might not be worth the money you’ll pay for them.
“These plans are really bad deals for consumers,” said Kevin Brasler, executive editor at Consumers’ Checkbook, a nonprofit consumer organization. He adds that most extended warranties — on everything from cars to homes — generally aren’t worth the added cost.
“They’re enormously profitable for the companies that sell them and for the insurance companies that back them, but they are way overpriced for the coverage that they provide,” Brasler said.
Let’s consider an iPhone 13 Pro Max. Released in 2021, it originally came with a $1,099 price tag. But now that it’s four years old, Apple says that model of phone is only worth $320. AppleCare for it costs about $10 per month or $120 per year. Plus, most repairs still come with a deductible.
At this point, it’s likely not worth continuing the AppleCare coverage.
“They’re expensive plans,” Brasler said. “I mean, you have to pay several hundred dollars just for that added coverage. And then there’s also usually a deductible. Something goes wrong, you have to pay a certain amount just to get it fixed.”
Here are some rules to remember. If your phone is paid off, it’s probably time to hang up on the coverage. Also, if your phone’s value has dropped enough that the yearly cost of a coverage plan is at least a quarter of the device’s value, cancel it. Finally, if something happened to your phone, would you just upgrade to a new device? That’s a sign to dump the coverage.
A good overall rule: don’t pay for a protection plan on a phone for more than two years. At the absolute most, three years beyond a device’s release date is the longest you should continue to buy coverage.
