Will cell phone insurance really protect you?

Cell phone insurance policies say they'll protect you if your phone is lost, stolen, or broken…but will they really?

David Lazarus of The Los Angeles Times  wrote a column about how one woman purchased an iPhone 5 on AT&T and then decided to sign up for the $6.99/month policy when she was traveling in Asia.

Her phone was stolen during the trip, so she went to the police and filed a report. Then she filed a claim with Asurion, the insurance provider.

Well, her claim was denied 3 times by Asurion. Their rationale? She wasn't covered because she wasn't on the AT&T network at the time of the theft.

That's despite the fact that it clearly states in the insurance contract's 9 pages of mice type:  "The coverage territory is worldwide."

I've long said cellphone insurance is a real stinker. The reality is you have a deductible to meet when you make a claim and then you typically get a refurbished phone back.

But this latest story from David Lazarus now confirms how bad it really is!

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