Cuomo Signs Law to Expand Insurance for Damaged, Lost, and Stolen Cell Phones

     Gov. Andrew Cuomo has signed a new law that gives New Yorkers the opportunity to get less expensive insurance for damaged, lost, and stolen cell phones by authorizing credit and debit cards companies and banks to provide insurance.

     Prior to the passage of the legislation that amends state insurance law, New York state law did not allow credit and debit card issuers and banks, which potentially provide lower-cost insurance than do private insurance companies, to ensure their customers' cell phones.

     "Cell phones are obviously a vital, necessary, and expensive reality of modern life, and losing or breaking one can create real financial burdens, disrupt schedules and otherwise inflict undue aggravation on New Yorkers," Gov. Cuomo said today. "I'm proud to sign these new consumer protections into law and allow greater choices and potentially less-expensive options to those seeking to ensure their devices and prevent annoyances down the line."

     Of the approximately 97% of adults in the United States who own cell phones, according to a recent study, 85% of those cell phones are smartphones, which are more susceptible to damage, loss, theft, and mechanical breakdowns. 

     Given the high costs of replacement devices, the governor hopes to provide safeguards for New Yorkers who incur one of these losses, by providing lower cost insurance, the governor’s office said.