AT&T to offer new iPhone insurance plan

Insuring the safety of your iPhone is soon to be a lot cheaper.

AT&T has announced that it will slash the monthly fee for customers wanting to protect themselves against damage, loss, or theft of their precious smartphone.

Beginning July 17, the carrier’s plan will cost users $4.99 per month. As long as they continue paying the fee, if at any time they need to replace their iPhone for any reason, they pay a $125 deductible and are sent a replacement overnight.

Customers can file up to two claims within a 12 month period, but in some cases they may be required to ship back their damaged iPhone to Asurion, the third-party company in charge of the insurance claims.

Asurion is the same company that all other major mobile providers partner with for cell phone insurance policies, but each carrier also has flexibility over how much to charge and what the specific terms and conditions are.

AT&T already has a partnership with Asurion, but charges iPhone customers $11.99 per month for insurance, and charges up to a $199 deductible for a new phone. To most sound-minded people, that seems like a totally worthless deal.

For $5 per month, an iPhone owner will spend $120 over the life of a two-year contract. Considering the non-upgrade price of an iPhone, that’s a pretty good deal.

For iPhone owners on the only other available mobile network, Verizon, a similar insurance policy costs $6.99 per month. Verizon’s insurance is also managed by Asurion.