AT&T user almost lost $3,800 on two damaged Galaxy Z Fold 5 phones, but walked away paying $0

Insurance is the thing you buy and hope you never have to use: but, boy, does it feel good to be covered!

"Protect Advantage is entirely worth it", a Reddit user by the nickname of chezco posted at the AT&T subforum and told their story that involves not one, but two damaged Galaxy Z Fold 5 phones (and a Moto Razr+).

User chezco is talking, of course, about AT&T's Protect Advantage insurance plan which is advertised as offering free unlimited screen and back glass repairs, same-day replacement device and setup, unlimited battery replacements, and more in partnership with Asurion.

So, the Reddit user left one of his Galaxy Z Fold 5 phones at a repair shop: however, they mishandled their device, leaving it in worse condition than before, "funny" enough. So the owner turned to Asurion, their insurance provider. To their surprise, the company came through, sending them a brand-new, factory-sealed replacement Galaxy Z Fold 5 in pristine condition.



While this sounds like a dream outcome, many people pointed out that such positive experiences with phone insurance are not guaranteed. Some noted that only about 20% of users ever file claims, meaning that most of the money going into these protection plans is pure profit. Ideally, this would drive costs down, but instead, insurance rates have only gone up over the years, now reaching nearly $17 a month when they were once as low as $5.

Others countered that phone insurance today actually offers more than it used to, covering back glass, OLED screens, same-day repairs, and even shipping replacements directly to users. While some people pay for coverage and never use it, the argument was made that this is no different from any other form of insurance. The OP says they insure all nine (!) of their phones, purely for the convenience and peace of mind.

Another perspective came from those who rely on credit card benefits rather than traditional insurance. Many credit cards offer damage protection for electronics purchased with the card, making monthly insurance fees seem unnecessary. However, as it was pointed out, credit card coverage often involves a lengthy claims process and lower payout limits, whereas dedicated phone insurance provides same-day replacements and authorized repairs with warranties.



The debate also touched on installment plans and the perception of phone costs. Some argued that people have become accustomed to "free" phones, forgetting that trade-ins and financing deals are factored into the final price. Others pointed out that if they purchased a phone for $500 after discounts and promotions, spending nearly $400 on insurance over two years seemed excessive, especially when alternative protections were available.

Do you pay for insurance for your phone?