Woman holding smashed cell phone

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Cellphones cost a lot of money, so it can be upsetting to damage or break your phone. If you’re working on your personal finance goals, you want to do your best to avoid spending money on extra expenses like phone repairs. If you have the right credit card in your wallet, it may help you save money on repairs or help pay for a replacement phone.

Cellphone repairs are costly

Even if you’re careful, it’s easy to break or damage your cellphone. Americans spend a lot of money to fix their phones. According to a Secure Data Recovery survey, Americans spend an average of $617 on lifetime phone repairs. That’s money that could be used for other expenses.

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As new technology and desirable features get added to the latest cellphone models, they become more costly to make and repair. Consumers should have a plan in place for how they plan to cover repair and replacement costs in the event their phone is damaged or stolen. If they don’t, they may be in for a surprise when the repair bill arrives.

This credit card perk could save you money

Cellphone protection is one perk that is included with some cards and it may help you save money if you don’t have a warranty or other coverage for your phone.

With this type of protection, you can get reimbursed for necessary phone repairs or receive payment to cover the cost of a replacement phone. If you accidentally damage your phone or it’s stolen, you may be eligible to file a claim.

It’s worth mentioning that most cards require cardholders to pay a deductible. Paying the deductible and using this cellphone perk may still be cheaper than paying for repairs outright, though.

Most cards with this benefit also outline how many claims you can make in a 12-month period. Keep this in mind so you don’t exhaust your benefits without realizing it.

How to use cellphone protection provided by your credit card

Many credit cards with cellphone protection coverage require you to use your eligible credit card to pay your monthly cellphone service bill. If you don’t do this, you may be ineligible for coverage.

How do you use the coverage? You’ll need to provide documentation and go through the claims process to determine if you qualify for benefits. You may need to take your phone to a repair shop to get an official repair quote and damage report to submit during the claims process.

Let’s imagine you have a credit card that offers up to $1,000 in cellphone protection benefits. If you’re quoted $600 for repairs and have a deductible of $100, you’ll get $500 to cover the cost of your repairs, if your claim is approved. That’s a lot better than paying $600 without coverage.

Don’t let valuable credit card benefits go to waste

It’s a smart idea to regularly review your credit card benefits. You may not realize that you have cellphone protection coverage. This is a valuable credit card perk that is often overlooked.

Using all of your credit card benefits is an excellent way to get the most out of your cards. If you’re interested in applying for a new credit card, take a look at our best credit cards list.

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