Which of the following is the best alternative plan to purchasing cell phone insurance?
Group of answer choices
Buy 2 of the same phone so that you have a backup phone in case the original breaks or needs replacement.
Trust that your auto insurance will cover any damages to your phone.
Never use your cell phone outside of your house so it is less prone to being damaged, lost, or stolen
Put aside money that is equal to the monthly premium in a savings account, in case of phone repairs or replacement.*
Put aside money that is equal to the monthly premium in a savings account, in case of phone repairs or replacement.
The best alternative plan to purchasing cell phone insurance is to put aside money that is equal to the monthly premium in a savings account, in case of phone repairs or replacement.
To determine the best alternative plan to purchasing cell phone insurance, we need to consider the pros and cons of each option and evaluate which one provides the most cost-effective and convenient solution.
1. Buy 2 of the same phone: This option provides a backup phone in case the original breaks or needs replacement. However, it can be quite expensive to buy two phones, and it may not be practical for everyone to afford two devices. Additionally, this option does not cover other potential risks such as theft or loss.
2. Trust auto insurance: Auto insurance does not typically cover damages to personal belongings such as cell phones, so relying solely on auto insurance to cover phone damages is not a reliable option.
3. Never use the cell phone outside of the house: While this may reduce the risk of damage, loss, or theft, it is highly impractical as most people rely on their cell phones for everyday tasks, including communication, navigation, and accessing information on the go. Furthermore, this option does not provide any protection when using the phone within the house.
4. Put aside money in a savings account: This option involves setting aside money equal to the monthly premium for cell phone insurance in a savings account. By doing so, you can build up a fund that can be used for phone repairs or replacement. This option is cost-effective since you only pay for repairs or replacements when necessary, rather than a regular monthly premium. However, it requires discipline and consistency in saving money, and it may take time to accumulate enough funds for costly repairs or replacements.
Based on the evaluation, putting aside money equal to the monthly premium in a savings account appears to be the best alternative plan to purchasing cell phone insurance. It offers cost-effective coverage, even though it requires disciplined saving habits.