Understanding the Difference Between Warranty and Insurance

The iPhone comes with a free one-year warranty that can be extended to two for an extra $69. It’s important to differentiate between a warranty and insurance, especially when investing in a gadget as costly as an iPhone.

Warranty Coverage

By definition, a warranty is a contract that promises complementary replacement or repair if the covered product stops working properly as a result of poor workmanship or a flaw in the design. The coverage expires after a set amount of time and anything that occurs after that is up to you to pay for.

Insurance Coverage

Insurance is what you pay for to make sure you’re covered in the event of unforeseen circumstances such as accidental damage, liquid spills or theft. One of the biggest dilemmas facing iPhone customers is the high cost of replacing the phone in the event of any of the above situations.