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Posted: 6:00 a.m. Thursday, March 6, 2014

Is cell phone insurance worth the cost?

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By Clark Howard

Cell phone insurance policies say they'll protect you if your phone is lost, stolen, or broken…but will they really?

David Lazarus of The Los Angeles Times  wrote a column about how one woman purchased an iPhone 5 on AT&T and then decided to sign up for the $6.99/month policy when she was traveling in Asia.

Her phone was stolen during the trip, so she went to the police and filed a report. Then she filed a claim with Asurion, the insurance provider.

Well, her claim was denied 3 times by Asurion. Their rationale? She wasn't covered because she wasn't on the AT&T network at the time of the theft.

That's despite the fact that it clearly states in the insurance contract's 9 pages of mice type:  "The coverage territory is worldwide."

I've long said cellphone insurance is a real stinker. The reality is you have a deductible to meet when you make a claim and then you typically get a refurbished phone back.

But this latest story from David Lazarus now confirms how bad it really is!

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