Consider getting insurance or buying a warranty if you plan to buy a Smartphone

Do you know how much you would have to pay if you break or lose your Smartphone?  Are warranties and insurance policies really worth the price you pay? 

A new iPhone -- or any Smart phone -- is not cheap, usually $199 with a two-year contract. But what many people don't realize is that you'll have to pay a lot more if you drop, break, or lose it. That is because replacement phones don't come at a discount.

Smartphones like the iPhone 4S and Droid are expensive. But they are even more expensive if you break or lose one, as Dave Gregory learned after buying his two teenagers new Smartphones.

"Within two weeks, both of them had dropped their phone, simple drops, fumbling to get a call,” says Gregory. “It fell to the floor a couple of feet and the screen shattered."

That is exactly why insurance can be worth buying.

"Insurance is a good option for the consumer, because it's $199 the promo price, but if you lose it without the insurance, it’s close to $700 for replacement of a 16 gig," says Bob Flynn of Verizon Wireless.

Verizon, AT&T, and other carriers offer Smartphone protection plans for about $10 a month, though you'll still pay a deductible between $150 and $200 for a new phone.

A third-party plan with good reviews is square trade: $99 to $125 for two-year protection on an iPhone or Android, with a $50 deductible.

For iPhones, many tech websites recommend Apple's Apple Care Plus.

Apple care is also $99 for two years, with a $50 deductible per incident.

Finally, your homeowner’s policy may provide coverage. Check with your insurance company, and your phone provider. If one of them offers a better rate, you may want to sign up.