I think it is. You never know when a phone is going to get stolen or damaged. I bought the razr when it first came out with Verizon and left it in my pocket and washed it; no insurance and very expensive to replace( a few hundred). It also depends on how much you paid for a phone.If you buy a cheap phone it may not make much sense to pay monthly for insurance. I have a blackberry pearl with Verizon. If I lose it or it's stolen and I did not have insurance I would have to pay full retail price(around $400.00). Warranties only cover defects up to a year, for an extra $5.99 a month It covers everything.