Cell phones are a necessity in recent times. They help you to stay connected to your loved ones and business associates. Arguably the cell phone, GSM or CDMA, 3G or 2G, locked or unlocked, prepaid or postpaid, is the most exciting and useful human invention since the wheel. They are no longer used only for sending and receiving calls. Cell phones are all in one devices with multi tasking capabilities. On buying a cell phone fully loaded with advanced features like 3G, wireless internet, or touch screen one often faces a dilemma of buying phone insurance for it or not. The locked carriers like Sprint phone insurance push it hard at point of sale. It can be very confusing especially when explained by sales people who are not particularly interested in explaining the finer points. Ensquared believes it is essential to give you the consumer clear explanation on the pertinent issues. Go at any time to Cell Phone Insurance Calculator for fast, easy to understand cell insurance solutions on the Ensquared Insurance Calculator - a unique technology. Manufacturers Warranty

Most people are aware that manufacturers provide some kind of warranty, and by implication believe therefore that additional insurance cover on the face of it seems unnecessary. To understand if there is indeed a need for mobile phone insurance we must first get familiar with the concept of manufacturers warranty and what it exactly covers. New unlocked cell phones purchased from authorized dealers and locked handsets from carriers come with a 1-year manufacturers’ warranty. Manufacturers warranty covers in-built defects in handsets from the moment you purchase them or any other manufacturing problem you face later in the 1-year period. It can be static like sound dropping or signal dropping affecting cell phone coverage, software corruption, LED display, and breakage of phone electronics - all attributing back to the manufacturer but, notably, not your negligence. The warranty is subject to terms and conditions stated by manufacturer in the booklet provided and are detailed and very specific.
Early Life Failure (ELF) is a sub-protection program provided by manufacturers focused on both locked and unlocked cell phones being found defective within a period defined by manufacturer – in which case the warranty plan provides the resolution; mostly by replacing the set (e.g. Ericsson provides a 30-day protection plan).
Dead on Arrival or DOA is also a sub-protection policy where if the phone is found to be defective before being sold to the user, then repaired, and it falls within a defined period after purchasing from distributor, the warranty plan also covers it and replacement is provided. Ericsson provides a 2-month period for their DOA plan.
Warranty, including ELF and DOA are different in terms and substance from manufacturer to manufacturer. So changing from a Nokia N6500 to LG Prada, for example, means that attached warranties need to be perused carefully each time.
Importance for cell phone insurance
The question that crops up is why should we spend money on phone insurance when a manufacturers’ warranty is available? The answer is simply this:

* Firstly, the longest aspect of manufacturers’ warranty plans is for a 1-year period and does not cover the stated defects beyond that.
* Secondly, there is lot of potential cellular insurance issues the manufacturers’ warranty does not cover. The most relevant of these are phone damage through mishap or slippage; lost; water damage or stolen.
* Thirdly, lost phones and stolen phones

So unlocked cell phone insurance has at least three dimensions: Covering electronic defects occurring outside of the warranty, ELF and DOA periods; for a myriad of issues outside of the warranty altogether; lost phone or stolen phone as well
Extended warranty vs unlocked cell phone insurance
Now here is where care needs to be taken. An extended warranty may create longer term protection on electronic issues ordinarily covered by manufacturer in their warranty periods. However, they are still not comprehensive insurance coverage in the same vain as a good cell insurance cover. The extended warranty is not designed to deliver on lost phone, stolen phone and damaged phone through negligence at any time. Extended warranty services on their own are often unreliable. The providers settle for sub contractors, which provide cheap underrated work. Moreover, often the providers sell them to start from when you purchase the product so they usually overlap the manufacturers warranty giving the same benefits. This is a wasted cost indeed. It is based on these key but subtle differences that consumers for cell phones see extended warranties as costly,
Conversely, a good phone insurance policy should also include extended warranty options.
There are various types of mobile phone insurance plans covering particularly the type of mobile handset you use. Wireless Phone insurance specifically protects your 3G wireless Internet phone against any phone loss, phone theft, phone damage from the beginning and failure (electrical or mechanical) after your manufacturers warranty has expired. The carriers provide cell phone insurance for locked phones whereas you can get insurance for unlocked cell phones from a few reliable companies. Ensquared are preparing a full comprehensive cell insurance program that will be released in 2009. Insurance will cover prepaid cell phones as well as contractual ones. Just as a homeowner’s insurance provides relief and satisfaction, cell phone insurance provides peace of mind.
As a rule the carriers comprehensive phone insurance is obtainable for around $6 per month, whereas shopping on the Internet should get very reliable coverage for around $4 per month. Keeping in mind that the unlocked cell phones are bought unlocked and designed to be used for a long time, this cost for the breadth of protection offered is well worth it.
You may consider buying cheap and specific insurance plans from Ensquared to safeguard your precious mobiles.

Article is courtesy Ensquared Why a warranty is not insurance for unlocked cell phones