You could insure your smart phone, but I have a different Clark Smart way to protect it.

A lot of people get their phone through the big contract carriers. So when you go in to get your Galaxy III from Samsung, or the latest HTC, or even the much rumored iPhone 5, you get locked into that 24-month contract. You also get a pitch for cell phone insurance from the salesperson.

Cell phone insurance typically runs about $80 a year. You have a deductible to meet, usually around $50, and after paying that you often get a refurbished replacement phone -- not a new one.

Not buying the insurance means that if you lose or break that phone before your contract is up, you could owe the unsubsidized price of $600 or $700 for a new replacement phone.

But rather than paying for the insurance, why not get something like an Otterbox? It's a protective case for smartphones that is clunky and ugly, but really protects your smartphone in the event that you drop it.

You can get a protective case like this on a discount site like eBay or Amazon. But even if you pay full retail price, it's still a lower cost way to protect your phone. And that insurance policy you could buy will only guarantee you a refurb anyway!