It does not pay to insure your cell phone for loss.

The price of your model keeps going down. Prices of cell phones are expected to go down to $25/unit soon. Thus, if you insure the cell phone for a long time then you've already paid for a new one. Any payment for insurance or renewal of your warranty basically involves a gamble between you and the cell phone company. The cell phone company hopes that you will not lose or damage the phone, and - in effect - you say that you will lose it in order to make it worth paying for the warranty.

But what if you do lose your cell phone while it is still relatively new?

The cell phone company will often work out a deal, in which you insure the telephone retroactively, you insure the telephone for a reasonable amount of time, or you guarantee that you will insure the replacement telephone for a reasonable amount of time. They will then give you another cell phone without charging you the balance of the fee for the old telephone, with the possible exception of certain basic charges.

There's more.

When you insure a telephone, you still have to pay a certain deductible amount of money if you lose it. It becomes less and less worthwhile to pay the deductible amount as the phone's value goes down with age.

On the other hand, if your phone is not stolen, then you will have saved money on the insurance.

In other words, it just doesn't pay to insure it.