Let's say you just bought the latest smartphone and signed a two-year contract with your wireless provider, and the sales clerk asks you if you'd like to pay a small amount of extra money a month to insure the phone. If you're like most people in this tough economy, your initial reaction might be to turn down the sales clerk. You might think to yourself, "I'll be careful with my phone. I don't need to pay for that." What you may not realize is that accidents happen all the time, and smartphones are fragile. Insurance can end up saving you a lot of money and stress in the end. Here are a few reasons why you might want to consider insuring your smartphone:

If you're uninsured, you'll have to pay full price for a new phone

If your phone gets broken or damaged beyond repair, or if your phone gets stolen, insurance will help you buy a new phone at an affordable price. Typically, when you buy a phone and sign up for a new contract, you pay about ¼ of what that phone is actually worth. Likewise, when you have insurance, you only have to pay ¼ of what the replacement phone is worth. If you don't have insurance, you have to pay full price for the phone, which can definitely put a dent in your pocketbook.

Insurance will cover repair costs

If your phone gets slightly damaged or starts to have technical problems, insurance will cover any and all necessary repairs. So, you won't have to put up with a phone that doesn't send text messages properly or a phone with a faulty GPS system just to save money. Investing in insurance means your phone will always work how you want it to work, at no cost to you.

Your phone isn't safe

As previously mentioned, smartphones are fragile. All it takes is one slip of the hands, and your smartphone's screen can end up terribly cracked. Additionally, smartphone theft is on the rise, particularly for iPhone and Samsung users. If you're the owner of a popular phone, your phone  is definitely at risk. Having to deal with someone stealing your phone and having access to your personal information is enough of an ordeal. You don't want to add having to pay full price for a new phone on top of that.

You're not limited to one type of insurance

If the insurance plans offered by your wireless provider seem a little bit too expensive in your opinion, you could always explore third party options. There are plenty of smartphone insurance providers you can find on the web that will help you afford ably replace and repair your phone as needed. If you decide to insure your phone, you definitely have options when it comes to price.

Smartphone insurance isn't necessary. However, as you can probably tell, it can be very beneficial. If you want some extra peace of mind when it comes to protecting your smartphone, don't rule out insurance!