Cell Phone Warranties and Insurance in Canada

For most people with newer smartphones, cell phone insurance is a worthwhile investment, acting as a protectant against self-inflicted damage. If you’re like me, breaking your phone is an unfortunate reality. I’m not generally careless, but I can’t tell you how many times I’ve cracked my screen. Let’s not even get into the times I’ve jumped into a pool, forgetting the phone in my bathing suit pocket. (Seriously, l don’t want to talk about it.) Luckily, I had cell phone insurance in each of those pitiful scenarios, making the overall damage minimal.

Since we began studying the telecom market in 2008, we’ve watched cell phones evolve from seemingly indestructible dumb phones into the highly precious mini-computers we now call smartphones. Along the way, we’ve also witnessed an explosion of cell phone warranties and insurance plans and have learned how to distinguish between worthwhile options and unnecessary add-ons.

In this guide, we’ll discuss cell phone insurance, analyze the insurance options offered by the major carriers, and explain the difference between a warranty and an insurance plan. We’ll also help you determine if cell phone insurance is right for you and your particular situation.

What is cell phone insurance?

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Much like car insurance protects your vehicle, cell phone insurance is a policy that covers the cost of repairing or replacing your phone after covered incidents like damage, failure, or theft. You typically pay for it monthly, though some providers offer longer plans for which you can pay upfront.

What does cell phone insurance cover?

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Most cell phone insurance policies are quite prescriptive in the types of incidents they’ll pay out for. Phone insurance usually covers:

• Accidental damage, like a cracked screen or water immersion
• Mechanical failures, such as your battery overheating
• Phone loss and/or theft

Unfortunately, cell phone insurance rarely covers cosmetic issues caused by typical wear and tear, and sometimes will only cover cracked screens if they affect the phone’s functionality. In those cases, it’s easier to head to a phone repair shop, like Mobile Klinik, where you can pay to have your screen repaired. If the price for the repair is too high, you also might consider buying an unlocked and refurbished phone that you can activate with any carrier in Canada with just a few simple steps.

Who offers cell phone insurance?

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Most manufacturers and cell phone carriers in Canada offer cell phone insurance, which is charged monthly and added to your cell phone plan. In general, these insurance plans cover accidental damage, mechanical failures, and theft, but the fine print can be stringent about damage they define as intentional or due to recklessness.

Apple, Google, Samsung, and other manufacturers

Several smartphone manufacturer warranties offer complimentary protection with the purchase of a device. That doesn’t mean that you’re covered against all that life can throw at your phone. The standard warranties from Apple, Google, and Samsung don’t cover cosmetic damage or accidental damage, including exposure to water, and only last for a year.

If you’re interested in more extensive coverage, you can grab a premium insurance plan from your manufacturer. These plans cover liquid damage, broken screens, mechanical malfunction, and other defects that aren’t covered by the standard manufacturer’s warranty. You can also add theft and loss protection to your policy, ensuring you’ll be covered even when the unexpected happens.

Phone carriers

Depending on your phone carrier, phone insurance may also be available as an add-on to your phone plan. Each of the Big Three carriers provides its own version of phone insurance, as well as several flanker brands under the majors’ umbrella.

Bell

Bell offers cell phone insurance through Smart/Phone Care, starting at $13/month. The policies are underwritten by Liberty Mutual and administered by Asurion. Smart/Phone Care covers:

• Defects in parts and workmanship
• Physical damage
• Electronic damage
• Liquid damage
• Loss or theft
• Normal wear and tear

There are some important caveats to the plan:

• You need to enroll within 30 days of activating the device.
• You’ll only be covered for two claims—if you crack your screen a third time, that one’s on you.
• You’ll pay a deductible based on the model of your phone.

Bell’s Smart/Phone Care is available with any Bell plan. The Bell flanker Virgin Plus offers a more simplified version of Smart/Phone Care, simply called Smartcare, for the same price. You can find the most popular Bell and Virgin Plus plans with Smart/Phone Care and Smartcare below.

Rogers

Rogers offers two different Device Protection plans, one for Apple products and one for Androids. Both start at $6.99/month. The Apple plan is effectively AppleCare, with unlimited coverage for damage and one replacement for loss or theft. The Android plan allows for three claims every 12-month period, including two for accidental damage and one for loss or theft. Unlike Bell, Rogers doesn’t have deductibles, though they do have processing fees. Screen repairs cost $39, while other repairs can cost up to $129. Replacing a lost or stolen phone will cost about the same as you’d pay with Bell’s Smart/Phone Care.

These plans are open enrollment, meaning you can sign up for Rogers phone insurance whenever you like, even if it’s long after you purchased the phone. That doesn’t mean, however, that the policy will cover retroactive damage, so don’t assume buying coverage after dropping your phone in the bath will solve all your problems.

Rogers’ Device Protection is available on any plan purchased with a Rogers phone. The Rogers flanker Fido offers the same device protection plans, with prices starting at $6.99/month. You can find the most popular Rogers and Fido plans with Device Protection below.

Telus

Telus offers two different phone insurance options. The first is its Device Care Complete plan, provided by Asurion, which costs $15/month. While that’s more expensive than Bell or Rogers, it’s also more comprehensive. Device Care Complete covers:

• Unlimited cracked screen repair
• Same-day repairs at Mobile Klinik
• Physical damage
• Electronic damage
• Liquid damage
• Loss or theft
• Free battery replacements
• Broken cameras, microphones, speakers, and power ports

Like Rogers, Telus doesn’t have deductibles, though that doesn’t mean all repairs and replacements are free. You’ll still pay for screen repairs and replacing lost or stolen devices; the amounts depend on your phone's model.

In addition to Device Care Complete, Telus offers AppleCare+, which covers unlimited repairs and replacements for iPhones and starts at $7/month. Like Rogers’ AppleCare option, this covers all repairs and replacements for Apple products.

Telus Device Care Complete and AppleCare+ are available with all Telus plans. The Telus flanker Koodo Mobile also offers Device Care Complete. You can find the most popular Telus and Koodo plans below.

Freedom Mobile

Freedom Mobile offers cell phone insurance through its Freedom Phone Protection Plan, which is managed by the phone insurance company Likewize. The plan covers:

• Accidental damage, including cracked screens
• Liquid damage
• Out-of-warranty malfunction

You’re limited to two service requests per 12-month period. Freedom doesn’t have deductibles; like Rogers and Telus, you’ll pay fees for screen damage repair ($39) and other service requests ($129) and a reduced fee for a replacement phone.

Freedom Phone Protection is available with all Freedom Mobile plans. You can check out the most popular options below.

Third-party cell phone insurance providers

If you’d rather not use your carrier’s cell phone insurance plan, or if you’re on a prepaid carrier that doesn’t offer insurance, there are also third-party options available. Some of these options are cheaper than the carrier equivalents; others offer more comprehensive coverage.

Some of the best third-party cell phone insurance plans are available through credit card companies. Among these are RBC Avion, which offers coverage up to $1,500, and American Express, which has a $50 deductible.

Phone insurance vs. phone warranties

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A warranty is similar to cell phone insurance, with a few important distinctions. The first is enrolment: new smartphones come with manufacturer’s warranties, which usually last between one to two years. You don’t need to opt into a warranty; the period begins at purchase.

The second distinction is coverage. A manufacturer’s warranty covers mechanical and software issues not caused by the phone's owner (i.e., you). For example, if your phone’s display suddenly stops working for seemingly no reason and you’re still under warranty, the manufacturer will repair the phone at no cost to you. If, however, you first dropped your phone into the toilet and then the screen began malfunctioning, the warranty will not cover that damage. An insurance plan most likely will.

Is cell phone insurance worth it?

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Cell phone insurance is worth it if you have an expensive phone. If you recently purchased the latest iPhone or Android, devices that will last you several years if they’re properly cared for, then we recommend grabbing insurance beyond the standard manufacturer’s warranty. While the additional amount paid per month might not seem worth it at the moment, it’ll feel like money well spent when you inevitably drop your phone.

If you’ve got an older or budget phone, though, cell phone insurance probably isn’t worth the monthly add-on. You can guess how much your phone is worth based on how much it goes for on Craigslist or Orchard. If the value of the phone is less than the cost of the monthly premium plus fees and deductibles, you’re better off paying for a replacement outright. If your next trip into the pool leaves the phone damaged beyond repair, then you can just buy another cheap device.