By Steve Jackson
Telstreet

One of the benefits of today's wireless phones is their size: they're small and compact and can easily fit in a pocket.

It's also one of the drawbacks. Because today's phones are so small, it's very easy to lose them or have them stolen. That's why you might want to consider buying insurance for your handset.

Replacing a lost or stolen handset can be an expensive proposition. The price you paid for your phone when it is was new isn't really indicative of the handset's true costs, since carriers tend to subsidize part of the expense. You can count on paying at least 50 percent more for a phone when you purchase it on its own instead of in conjunction with a new service plan activation.

You can avoid that cost by purchasing an insurance policy for your phone. These policies are purchased through your carrier, and are frequently called equipment protection or handset replacement plans.

A typical insurance plan will run between $3 and $5 per month per phone. The premium covers the cost of replacing your handset should it be lost, stolen or damaged. Most plans will even include accessories that are lost or stolen, such as battery chargers, cigarette lighter adapters, extra batteries, carrying cases and hands-free kits.

If you need to make a claim, you will probably have to pay a small deductible - between $25 and $50 - but that is far less expensive than having to pay for a new handset.

You can sign up for insurance coverage when you purchase your new service plan and phone. If you already have a plan and phone, you can contact your carrier for information on their insurance program and to sign up.