One-third of Smartphone Owners Purchase Insurance for Their Devices, Circana Reports
Both damage and identity theft are concerns smartphone owners are looking to safeguard against
CHICAGO, Sept. 25, 2025 (GLOBE NEWSWIRE) -- CHICAGO – September 25, 2025 – Smartphone owners in the U.S. are demonstrating their concern over the security and usability of their devices. According to a new Connected Intelligence report from Circana, LLC, 33% of smartphone owners purchase an extended warranty or insurance service for their devices. Among consumers who purchase some level of insurance for their smartphones, three-quarters identified privacy, security, and identity theft protection as being among their top interests, comparable to concerns related to damage repair options.
“Over the past decade, we’ve witnessed a remarkable evolution in mobile phone technology. Devices have become significantly more advanced, showcasing cutting-edge innovations such as foldable displays, enhanced cameras, and AI-powered features,” said Brad Akyuz, executive director, Connected Intelligence® at Circana. “As mobile phones grow increasingly sophisticated—and expensive—the need for comprehensive protection has never been greater.”
Smartphone users who sign up for insurance packages show higher awareness levels of insurance features and likelihood of applying insurance to multiple devices. There is a notable increase in awareness among retail shoppers and users on high-ticket flagship smartphones. Cracked screen and theft coverage top the list of insurance feature awareness. The majority (80%) of phone insurance owners with multi-line accounts have other phones within the account insured. Parents have a high tendency to insure their kids’ phones (71%).
Phone insurance adoption is poised to grow in parallel to the increase in the adoption of delicate form factors such as foldables and recently introduced slim models by the top brands. According to Circana’s Retail Tracking Service, year-to-date through September 6, 2025, foldable smartphones accounted for 2.6% of overall sales, up nearly half a share point compared to the same period last year.
Akyuz added, “Alongside the advancements in mobile phone technology, there has also been a notable rise in the cost of ownership. Consumers are now actively seeking coverage solutions that safeguards their investment against accidental damage, technical malfunctions, and even security breaches and theft.”
About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set, and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy.
Janine Marshall Circana 5166252356 janine.marshall@circana.com
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