Find out how cell phone insurance works and see if it's worth having one. Number of contracts increased in the last year!
The number of cell phone thefts and robberies has increased significantly in Brazil. In 2022 alone, the country recorded around 1 million cases of this type, according to the Brazilian Public Security Yearbook. Currently, the country has more cell phones than inhabitants, according to the National Telecommunications Agency. There are 203 million people, for 251 million active devices in Brazil.
With the number of thefts and robberies increasing, the demand for cell phone insurance has also grown, as many users want to protect their device and reduce financial losses in these cases, since buying a new cell phone is not cheap.
Learn more about cell phone insurance and see if it's worth having one!
Safe
According to data from the National Federation of General Insurance, together with the main insurance companies that offer this type of service, there are at least 10 million cell phones insured in Brazil. The price of the insurance is on average 20% to 25% of the value of the cell phone. With this, the total revenue from the service reaches R$$2.5 billion per year.
Of this number of insured cell phones, around 1 million use insurance to compensate for some damage. This number represents R$1.4 billion paid by insurers to customers each year. The most popular coverages are protection against robbery and qualified theft, as well as accidental damage.
Main coverages
– Accidental damage: These are cases of accidental drops and immersion in liquids. If it is not possible to repair the device, the insured receives a new one.
– Robberies and thefts: Robbery is characterized in cases of verbal physical threats or use of force. Theft occurs when the person is not threatened and only realizes that they have been robbed after the incident.
– Qualified theft: This is characterized when there are traces, such as a torn bag or drawer and a broken into car.
A survey by Pitzi, an insurance startup, showed that in 2021, around 23% of consumers signed up for insurance plans for cell phones that cost between R$1,500 and R$3,000. In 2022, the number grew to 33% of devices with these same values. The number of insurance plans for intermediate cell phones, from R$3,000 to R$6,000, grew by 12% in 2022.
Cost
Generally, each insurance company has its own rules, however, companies normally do not cover: misuse, natural wear and tear, theft due to abandonment of the cell phone, loss and misplacement.
The amount paid by the insured depends on the brand and model of the device. Some insurance companies charge an additional amount when the service is activated. Therefore, in addition to paying the monthly amount, the user must pay the deductible if they decide to redeem the insurance. Thus, the user pays part of the cost of the new device and the insurance company pays the rest of the amount.
The operator Vivo has some basic plans for robberies and thefts, starting at R$19.59 for new cell phones. Samsung also has insurance services, with a basic price of R$23.20 per month, for a pre-owned cell phone. The insurance for an iPhone 11 Pro Max at Vivo, for example, costs R$$103.95, in cases of theft and robbery.
Simpler insurance policies do not cover the full cost of replacing the device. Basic insurance plans cover amounts ranging from R$1,600 to R$1,000 for the replacement. Therefore, it is important for users to research prices and compare options to choose the best plan.
Institutions such as Banco Bradesco and Banco Itaú offer insurance against financial scams, caused by cell phone hacks. The cost ranges from R$$8.99 to R$15.99 per month, covering scams carried out via Pix or other transfers.
