A new OneAssist and Hansa Research study finds 84% of Indian smartphone users know about device protection, yet only 6-8% actually use it. With smartphone prices rising up to 50%, this gap exposes millions to high, unexpected repair costs, highlighting a major untapped opportunity in the after-sales and warranty market.
A significant disconnect exists in the Indian smartphone market. While consumers are increasingly aware of device protection plans, very few are actually opting for them, even as the cost of owning and repairing a smartphone continues to climb. According to a recent study by the InsurTech platform OneAssist and Hansa Research, 84% of smartphone owners are aware that insurance or protection plans exist, yet only 6-8% of them carry active coverage.
This low adoption rate is notable because 72% of users report experiencing accidental damage, with cracked screens being the most frequent issue. The data suggests that many users are taking a financial risk by choosing not to protect their devices.
Impact of Rising Device Prices
The financial stakes for smartphone owners have changed significantly over the last few years. Average smartphone prices in India have risen by 40-50%, making repair costs for components like screens and motherboards much heavier on the consumer's wallet. Furthermore, users are now keeping their devices for longer periods, with replacement cycles extending to approximately 40 months. As a phone ages, the likelihood of an accident occurring increases, yet the value of the device may not drop quickly enough to justify going without protection.
Why Adoption Remains Low
For many consumers, the barrier is not a lack of information but a lack of trust. The study notes that 44% of those who do not buy protection cite cost concerns as the main reason. Additionally, there is a lingering distrust in the claims process, with roughly four in ten consumers doubting that a claim will be honored when they actually need it. This hesitation keeps the majority of India’s 650 million-plus smartphone user base vulnerable to high, out-of-pocket expenses when accidents occur.
Opportunities in the Refurbished Market
There is a notable link between device protection and the growing market for pre-owned or refurbished phones. Four in ten Indians have already purchased a pre-owned device, a trend that is particularly strong in non-metro areas. The study indicates that offering protection plans could be a key lever for this sector, with 70% of those who have not yet bought a refurbished device stating that they would be more interested if reliable protection coverage were included.
What to Monitor
The gap between awareness and adoption represents a clear opportunity for organized retailers, manufacturers, and service providers to build better trust in their after-sales support. For the broader market, the key monitorable will be how companies improve their claims processes to win back consumer confidence. If insurance providers and manufacturers can simplify the claims experience and offer more transparent pricing, they may be able to capture a larger share of the vast, currently unprotected user base.