Loss and theft protection plans cover customers in the event they have their devices stolen or lost and are one of the most popular plans sold on cell phone devices to the tune of $8 billion a year. Statistics vary on how often this happens, but this coverage provides peace of mind for customers with phones of great value.
Loss and theft coverage usually comes with a high deductible of around $150 for higher end phones. A police report is also required to be filed to help reduce fraudulent claims.
It is important to note that loss and theft coverage is deemed an insurance product and must be sold by a licensed insurance agent. That means the sale person pitching this to you must have proper licensing or the contract is being sold afoul of regulations. If you are concerned, ask the person selling you coverage if they are licensed to do so.
As a customer, this is important because you want to make sure you are buying a plan from a reputable company that is going to stick around and be there in case you get into trouble. Companies that allow loss and theft to be sold at outlets without proper credentials, aren`t companies you want to be dealing with.
From a regulatory standpoint, process slows the disciplinary action on these companies and meanwhile, retailers continue to sell in violation with unsuspecting consumers buying. Retailers often don`t know the difference but are still responsible for what goes on. Because of the regulatory requirements, legitimate loss and theft solutions are usually only sold by large organisations with the infrastructure and interest to do so, most typically the cell phone carriers.
Protection plans are a great way to protect their customers from having to pay for a new phone while on contract.
Warranty Life is working on a new product that will qualify to be sold as something other than insurance. This will not only keep regulatory issues off the table, but reduce the overhead associated with that while increasing sales…because anyone can now sell it and it will have very unique features that will impress customers.