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Directive has been serving the Oneonta area since 1993, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Is That Mobile Device Protection Plan Worth It?

b2ap3_thumbnail_shattereddreams400.jpgUpselling and add-ons are the reason why you go to buy a new smartphone, expecting to pay the too-good-to-be-true sale price, and walk out locked into a contract that costs twice as much as you planned on spending. One add-on that's pushed hard is the device protection plan (smartphone insurance). Is a protection plan worth the expense?

Almost every new mobile device will come with an option to add a protection plan to your contract. Each make and model will have a plan with a different monthly fee. A typical protection plan will cost around $5 a month, which will add up to $120 over a two year plan.

Maybe $5, or even $120, is not a big deal for you, but if you are trying to save on your monthly expenses, then you understand that making cuts is how you get ahead, which means the protection plan is on the chopping block. Whether you cut the plan or not depends on if you see value in it.

The Cost of Your Device
One logical way to approach this choice is to consider how much it will cost to replace your device. Compare this $120 total expense with how much you paid for your device. A new device will typically cost between $99-to-199. With this price range in mind, you might say to yourself, "Not worth it."

Although, this price difference can be deceiving, because what you pay for the device when you commit to a contract, and the price you would pay for it without a contract, can be as much as two-to-three times more. The salesperson pushing for the protection plan is usually quick to point out this major price difference. With this in mind, your $120 will not go far in replacing a new $600 device, making the plan worth it.

The Depreciation Rate
You will also want to take into consideration the depreciation rate of your device. It's dumb to spend $120 or more over two years, when at the end or your contract, your device has depreciated so much that it's not even worth $120. Do some research and find out when your model was released, because the further out you are from the release date, the less valuable your device is.

Add another two years from the time you first bought your device, and your precious device may only be precious to you. This is especially the case if a newer model was released within the timeframe of your service contract. With enough research, you can actually plan your smartphone purchase and trade it in while it's still the latest model and get the fullest return out of it.

What is Covered?
The last thing you will want to consider, is how extensive is the protection plan? Does it only cover the replacement when you device is totaled, or does it include fixes like cracked screens and viruses? If you have Directive covering your company's technology, then you can include your mobile device with your IT coverage. We can help protect your device with many of the same great managed IT services that we provide for your workstations.

Before you sign the dotted line and commit to a device protection plan, give Directive a call at 607.433.2200 and find out how we can help protect your new investment and save you money.