AT&T Launching New ‘MobileProtect’ Insurance Plan for iPhone

AT&T is planning to introduce a new MobileProtect insurance plan for iPhone owners alongside Apple’s iPhone 4 next month, sources close to the BGR report. Expected to launch on June 6, the $13.99 plan must be purchased within 30 days of buying a new phone. It carries a deductible of $99 to $199 depending on the model purchased, and seems pretty expensive considering what a new, plan-free iPhone costs.

The insurance plan in question will be run by Asurion, the Boy Genius Report reveals, citing one of its “AT&T ninjas.” Carrying a price tag of $13.99 a month and set to become available for purchase through Apple’s App Store, the plan requires customers to enroll within 30 days of upgrading/purchasing a new iPhone. According to the internal documents leaked by this AT&T ninja, the U.S provider of wireless services is launching this service as, “Lack of iPhone insurance is a leading source of iPhone related customer complaints.”

AppleInsider calculates that the plan would cost $335.76, over the 24-month contract of a new phone. The resulted price, added to the $199 deductible of a 32GB iPhone 3GS, comes to $534.99, which isn’t all that far from the $699 a customer would pay for the unlocked device. It points out that AT&T's MobileProtect plan covers mechanical and electrical failures for two years, the leaked documents further reveal. Accidental damage (including drops and spills, loss and theft) are also covered.

A comparison between AT&T’s MobileProtect and SquareTrade's third-party warranties for iPhones is also provided by the second source cited in this report. SquareTrade’s insurance plan regularly costs up to $9.99 per month. When purchased in advance, it costs $144 for 24 months of coverage, which translates into 50% worth of savings over paying monthly premiums. It is actually less than half of AT&T’s price for MobileProtect.