The United States mobile phone insurance market size value reached USD 11.40 billion in 2024. The market is projected to grow at a CAGR of 8.3% between 2025 and 2034, reaching a value of around USD 23.97 billion by 2034. This growth is fueled by the increasing reliance on mobile devices for a wide range of activities—from work to personal communication, entertainment, and financial transactions—making insurance an essential aspect of mobile phone ownership. As smartphones evolve with more advanced technologies and higher price points, consumers are becoming more inclined to invest in mobile phone insurance to protect their devices. This post explores the factors driving this growth, key market segments, competitive landscape, and future developments in the U.S. mobile phone insurance market.
Market Segmentation
The U.S. mobile phone insurance market can be segmented by phone type, coverage type, and distribution channel. Each of these segments plays a critical role in the market’s expansion and helps shape consumer preferences in the ever-evolving landscape of mobile phone protection.
By Phone Type
Budget Phones: Budget phones, typically priced lower than premium models, still constitute a significant portion of the U.S. mobile phone market. While these phones are generally less expensive to repair or replace, many consumers still opt for insurance to safeguard against accidental damage, water damage, or theft. With growing awareness about the benefits of insurance, even owners of budget phones are increasingly turning to affordable protection plans.
Mid and High-End Phones: Mid-range and high-end smartphones, such as those offered by brands like Samsung, OnePlus, and Google, have become mainstream choices. These phones come with advanced features—such as larger screens, higher-quality cameras, and powerful processors—that can be costly to repair or replace. Consequently, insurance for these phones is gaining traction, especially in the context of expensive repairs that can significantly impact the device’s resale value.
Premium Smartphones: Premium devices, including iPhones, Samsung Galaxy S series, and Google Pixel, are the largest drivers of the mobile phone insurance market. The cost of repairing or replacing these devices is high due to their sophisticated components and cutting-edge technologies. For instance, the latest iPhones have OLED displays, ceramic shields, and high-end camera setups, which can increase the repair cost substantially. This makes insurance plans for premium phones almost essential, as consumers seek to protect their valuable devices from unexpected damage or loss.
By Coverage Type
Physical Damage: Physical damage coverage is the most common form of mobile phone insurance. It includes protection against accidental drops, cracked screens, liquid spills, or any damage caused by external factors. The popularity of physical damage coverage is primarily driven by the vulnerability of smartphones to these common issues. This type of coverage appeals to the majority of consumers, particularly those with active lifestyles.
Internal Component Failure: Internal component failure insurance is designed to cover problems related to the device’s internal components, such as battery malfunctions, processor issues, or hardware failures. While less common than physical damage coverage, it has become more relevant as smartphones integrate more advanced features that may wear out or malfunction over time. This type of insurance is particularly valuable for users who keep their devices for extended periods and want to ensure they’re covered for any internal failures.
Theft and Loss Protection: Theft and loss protection has gained popularity as smartphone theft becomes more common, especially in urban areas. With more valuable smartphones being carried around daily, the risk of theft has increased. Insurance plans that include theft and loss protection are becoming a must-have for consumers, especially for those in high-risk areas or those who frequently travel. Moreover, with mobile payment systems like Apple Pay and Google Pay becoming more popular, people are increasingly aware of the importance of protecting their devices against theft, not just for their physical value but also to safeguard their financial information.
Other Coverage Types: Some mobile phone insurance providers offer extended warranties, data protection, or software malfunction coverage. These types of plans are ideal for consumers who are looking for a more comprehensive protection package. Extended warranties ensure that users are covered for issues that arise after the manufacturer's warranty has expired, while data protection provides coverage for lost or corrupted data. While these plans are less commonly opted for, they can be beneficial for those who rely heavily on their smartphones for work or personal tasks.
By Distribution Channel
Retail/Carrier Partnerships: Many consumers opt for mobile phone insurance directly through mobile network carriers or phone retailers at the time of purchase. These partnerships make it easier for consumers to purchase insurance plans alongside their device, often as a bundled package. The convenience of purchasing insurance at the same time as the device makes this distribution channel highly effective.
Online: The online distribution channel is gaining significant traction, particularly with consumers who prefer flexibility in choosing their insurance plans. With a growing trend toward e-commerce and online shopping, more consumers are turning to online platforms to compare insurance offerings, read reviews, and purchase mobile phone insurance plans directly from providers. This convenience factor, coupled with competitive pricing and transparent terms, is contributing to the rise of online insurance sales.
Independent Insurance Providers: Independent insurance providers, offering stand-alone mobile phone protection plans, are also part of the competitive landscape. These providers typically offer more flexible coverage options and often specialize in specific types of phone insurance, such as comprehensive or theft-only plans.
Market Dynamics
The U.S. mobile phone insurance market is experiencing rapid growth, driven by various key factors:
Rising Smartphone Prices: As smartphone prices continue to increase, consumers are more likely to invest in mobile phone insurance to mitigate the risk of high repair or replacement costs. Premium smartphones can cost over $1,000, making insurance an affordable way to protect a significant financial investment.
Increased Risk of Theft and Accidental Damage: With smartphones being carried everywhere, the risk of theft or accidental damage is higher than ever. Consumers are more likely to purchase insurance for their phones to reduce the financial burden of unexpected events, including cracked screens or loss due to theft.
Growing Consumer Awareness: As awareness about the benefits of mobile phone insurance increases, more consumers are choosing to protect their devices. Education on the risks associated with smartphone ownership, such as theft or accidental damage, has encouraged people to take the necessary steps to protect their valuable devices.
Competitive Landscape
The U.S. mobile phone insurance market is highly competitive, with a mix of established players and newer entrants offering a variety of coverage options. Some of the key players in this market include:
Asurion: As one of the largest mobile phone insurance providers, Asurion offers comprehensive protection plans, including physical damage, theft, and internal component failure coverage.
AppleCare: Apple’s proprietary insurance offering, AppleCare, is a major player in the premium segment, catering primarily to iPhone users with extensive repair and support services.
SquareTrade: SquareTrade, now a part of Allstate, is known for its user-friendly insurance plans and quick claims processing, which has contributed to its strong position in the market.
Verizon, ATT, and T-Mobile: Major U.S. mobile carriers also offer mobile phone insurance plans through partnerships with providers like Asurion, providing bundled services and easy access to protection plans.
Key Trends and Developments
Subscription-based Models: Subscription-based insurance models are becoming more popular as consumers seek more flexible, month-to-month payment options. This trend allows customers to avoid long-term commitments and provides the flexibility to cancel their policies when desired.
Technological Advancements: As technology continues to evolve, mobile phone insurance providers are enhancing their services with digital tools that streamline the claims process, such as mobile apps for easy claims submission and real-time updates.
Focus on Data Protection: As smartphones store more personal and sensitive information, data protection has become a significant aspect of mobile phone insurance. Some providers are offering data recovery services as part of their policies, adding another layer of value for consumers.
