I just bought a Galaxy Nexus (the latest shiny android cellphone) on contract last week. These phones are expensive when buying them on contract but without a contract they are the cost of a laptop. The full retail price is $649.99 and if I break my phone that is what it will cost me to replace it. When checking out I was told I should probably get the insurance to cover the cost of replacing the device.

Do you have phone insurance? Most carriers push the $7/month insurance when purchasing such an expensive phone and the deductible is usually around $100. I am super careful with my phone but that $649.99 replacement price scares me.

Today I called my home owners insurance company to see if my Galaxy Nexus would be covered under my current plan. I discovered that it isn’t covered but for $7/year I could add coverage for my phone with no deductible. I am not a big fan of insurance on most items because I have money saved up for emergencies but this sounds like a good deal to me. I have to read over the fine print before I sign up but I would much rather spend $7/year instead of a month.

P.S. Same holds true for renting motorcycles… always check with your current motorcycle insurance company to see if rentals are covered. You will save lots of money.