I’m a long time fan of the iPod and iPhone. This is nothing new to anyone that reads here on a regular basis. It’s also nothing new that I go through iPhones at the rate of about one every 10 months or so. One was stolen. One fell and resulted in a completely cracked screen. Very costly incidents, not to mention that each time I lost some pretty important information. I equate a missing iPhone pretty closely to a lost wallet. I’m sure many people feel the same way about their Blackberrys too.

So I researched my options here, because there has GOT to be a better option than shelling out $200-$400 per incident, right?

Types of coverage:

Traditional Insurance Companies:State Farm. USAA, Geico, etc. Some companies in some states will let you purchase a floater that will cover your iPhone for loss or damage. Pricing can range anywhere from $15 to $50 dollars a year, however most of them have a large deductible which just might not be worth the cost/deductible fees.

You must already have an existing policy with the insurance company, so check with your homeowner or rental insurance company to see what your options are. At last check, State Farm’s rates were $30 a year.

Best Buy Black Tie Protection: They’ll cover liquid damage, cracked screens, cracked casing, etc… All you have to do is bring your damaged iPhone into any Best Buy, they will fix it or replace your device on the spot. They do not cover theft or loss.

The down side? It’s expensive. The price of $15 a month or $180 a year is pretty costly. They will cover 2 repairs and 1 replacement.

The up side? There is no deductible and they will provide you with a loaner phone during the 3 or 4 days it might take to repair your iPhone.

IRepair: For $7 a month or $55 a year, this company will insure your iPhone. Their deductible on a 3Gs is $20 and they cover a limited amount of things. They don’t cover any water damage, nor do they cover damage to the outside back casing or bezel. They do cover the cracked glass faceplate. Loss or theft is not covered.

To me with this plan it comes down to spending $199 to repair a glass face with Apple versus $55 a year with IRepair.

SquareTrade: Their plan costs $8.99 a month or $120 for a 2 year policy. You must purchase the plan within 90 of purchasing your iPhone. and there is a $50 deductible. Coverage includes damage caused by dropping or spills. They do not cover a lost iPhone. They will only cover one replacement.

Included is extended coverage of Apple’s warranty and there is no deductible when a problem occurs because of the manufacturer’s defect. Another plus is that they will replace your battery if the life drops below 50% of the original.

Safeware:  The plan here costs $79 a year for a 3GS. There is a $50 deductible and they cover accidental damages, theft, power surges and…floods? There is mention of “processing fees” but I was not able to find more information about how/when they apply.

Worth Ave Group:  A newer company in the iPhone insurance world. Their policy for a 3GS is $69 a year with a a $50 deductible per incident.  There is no occurrence limit and they cover liquid spills, accidental damage, theft, power surges and vandalism.

I’ve left out Apple iCare for a good reason. They only cover repairs of normal wear and tear damage……and who needs that? If a damage is caused by a drop or spill, the plan is useless.

Realize that with most or all of these plans, if your iPhone is stolen or damaged, you will be without a phone for anywhere from 3 to 10 days. For someone like me, this could be quite traumatic.  Try to keep an older cell phone around so that you have something to use in the meantime.

Know of any other plans or have experiences with these companies? Please share them.