How much are we really paying? Most people don't realize that along with the $3-$5 monthly charge they are also required to pay an additional deductible of $35-$50 when making a claim against a lost, damaged, or stolen phone! Most of the free phones given away by the carries are around $75- $100 if you were to purchase them without a plan.

Let us do the math. If I am able to keep my phone safe for a year I have paid $60 for nothing. What's worse is that if I had to make a claim on the phone I would be paying more than what the phone was originally worth. Now I know what you are thinking what if I purchase a Treo 650 or some other expensive phone. Well the answer is simple. Most carriers? don't offer insurance on the expensive line of PDA style phones.

Here is the real kicker if you have to make a claim. Most carries do not insure the phones themselves. They use third party insurance companies. This means that you have to call the insurance company directly. OK, so I make the call only to find out they don't have my phone in stock. It turns out that my phone is no longer available, which I was told happens more often than not. Most insurance companies will not stock phones that are six months old. Instead you are sent a phone that the insurance company deems ?comparable?.

Comparable is one of those subjective words that should immediately send up a red flag. What if I don't like the phone? What if I like my Motorola and now they sent me a Nokia? What if I purchased accessories for my phone and now they won't work with my new replacement phone?

It's my opinion that purchasing insurance for a phone is simply not beneficial in anyway. Between Ebay and our very own cell phone market place the consumer has numerous ways to find a replacement phone they are comfortable with, at a price they can afford.