Each year, more than four hundred thousand wireless phones are either lost, stolen or damaged, so a sales pitch to buy cell phone insurance is tempting. Tonight's story is buyer beware.

News4's Consumer Reporter Liz Crenshaw reported Monday the cell phone insurance sales pitch, which is often sold as a fast, hassle free protection of a wireless investment.

"He is 15 years old and I need to keep in touch with him," said consumer Qawiy Sabree.

Qawiy Sabree decided keeping track of his teenager would be a lot easier if his son had a cell phone. He bought a great phone at a great price, and when the salesman pitched a four-dollar a month insurance plan covering lost, theft or damage, he bought that too.

"It sounded good to me because I wouldn't have to go out and buy a whole new phone all over again," Sabree said.

As luck would have it, his son lost the cell phone, and that's when his ordeal began.

"Well the actual people that had the warranty told me there was a deductible. And I'm thinking I didn't buy a minivan, I bought a cell phone," Sabree said.

"There's a deductible?" Crenshaw asked.

"A deductible," Sabree answered.

"Of?" Crenshaw asked.

"Fifty dollars which is the same amount I paid for the phone. So that really, really set me off, it blindsided me because I didn't expect anything," Sabree said.

Sabree's original paperwork didn't mention a deductible so he headed back to the store and was handed a pamphlet

"And the pamphlet is going to show you what the deductibles are when you purchase," Sabree said.

"And that's in there," Crenshaw said.

"And it's actually in here," Sabree said.

"Were you given that the day you bought the phone?" Crenshaw asked.

"No, I was not given this," Sabree said.

"A lot of time as a consumer you are not getting what you think you are getting," said Susanna Montezemolo of Consumers Union.

Mntezemolo said it's buyer beware when it comes to cell phone insurance.

"Well often there are caveats that they don't mention in the sales pitch and it's all in the fine print you should definitely read the fine print," said Motezemolo.

If you are considering cell phone insurance remember your contract will often be with a third party, not your wireless carrier. Your coverage may take thirty days or longer to kick in. Deductibles can run twenty five to a hundred dollars.

In most cases, your replacement phone will not be new. It will be a reconditioned used phone and the store might not have it in stock.

But if you have a high-dollar device, like a Treo or a Blackberry, consumer reports says consider buying insurance. These items can be expensive to replace, even with reconditioned ones.

"I would say that if a consumer is going into a store and a representative is asking about a warranty or insurance they need to have you know Matlock, Perry Mason, or Luka Brazia anybody else that can come along and read this fine print because it is not what you think it is," Sabree said.

Remember, if the salesperson forgets to give you any of the fine print, ask for it before you sign on the dotted line.

7/24/2006 (11pm)