AT&T Announces Cheaper iPhone Insurance Program

AT&T will begin offering iPhone users its standard mobile insurance plan starting July 17.

The carrier is replacing its original iPhone insurance ($11.99/month) with a $4.99 monthly “Mobile Insurance” program. All newly activated or upgraded iPhone devices will be able to enroll within 30 days of activation.

The Mobile Insurance plan covers loss, theft, accidental damage and mechanical or electrical failure.

Verizon Wireless offers a $10.99 iPhone plan with a $169 deductible for the 16GB model and a $199 deductible for the 32GB model. These plans may sound cheap, but due to the high deductibles ($50 or $125 deductible for AT&T), and a limit to the number of claims you can file (2 per year) many iPhone users choose to forgo buying carrier insurance.

Apple is known to fix damaged iPhones for a flat $199 repair fee, and there are many reputable third parties who offer better coverage and lower deductibles.

AT&T started offering iPhone insurance in 2010 when it partnered with an outside company to offer its original $11.99/month plan.