Wireless Carriers Cut Discounts on New Phones

If you renew a contract with AT&T or Verizon Wireless, choose a cell phone you can live with for a long time. Both carriers are scrapping the option to buy a new phone at a discount after 20 months. The new rules, which affect Verizon customers whose contracts expire in January 2014 or later and AT&T customers whose contracts expire in March 2014 or later, require you to wait two years to get a phone at a subsidized price.

Cut the Cost of an iPhone in Half

If your phone bites the dust (or falls in the water) early, you needn’t pay full freight for a new one. Both carriers allow a member of a shared account who is eligible for an upgrade to transfer it to a fellow account member. Or you could reactivate a device you’ve used in the past or buy a used or refurbished phone on a site such as Amazon or eBay.

Don’t overlook manufacturer warranties, which often cover malfunctions for the first year. If you bought the phone with a credit card that provides an extended warranty, you may get an additional year of coverage. A warranty won’t cover damage that you cause. But if you use a card with purchase protection and damage the phone within three months of buying it, you might get a reimbursement, refund or replacement. Insurance probably isn’t worth it; you’ll typically pay $5 to $7 a month per phone plus a deductible of about $100.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.