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Insurance for cellphones is a good idea only for expensive devices, consumer groups say. "It would make no sense to pay US$30 a year for a phone that is only worth US$100," says one European consumer center based in Duesseldorf, Germany. Cellphone insurance often extends only to a break-in theft. If the cellphone is stolen out of one's coat pocket, then the insurance often won't pay. Cellphone owners should also look to get world-wide coverage, so that loss or defective equipment won't ruin a vacation. Insurance fees at six tested companies ran between US$25 and US$100 per year.

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