Best Phone Plans in 2023

What is a reasonable price for a phone plan?

The average price that customers pay for phone plans today is $113 a month, which is much higher than you might expect. Your price depends on the provider and the type of plan you choose, as well as whether you add any optional features. One example of an optional feature is phone insurance. This covers damage to your phone but requires that you pay a monthly fee for the service. If you drop your phone and shatter the screen, you can contact your cellphone company or insurance provider and file a claim. Many insurers require that you send your phone in for repairs. If the insurer finds that your phone needs too much work, you can pick out a new one in the same price range for free.

Phone plan discounts

When choosing a phone plan, consider all of the discounts that you can use. Discounts can include phone plan coupons that you enter during checkout while others are savings that apply to your account every month. A great example is a military discount, which you can qualify for if you are in the military or if you previously served. Some phone plan providers offer military discounts for the spouses and children of enlisted personnel, too.

Other discounts that help you save on your phone plan include discounts for: 

• First responders
• Doctors and other health care workers
• Teachers
• Students

Other ways to save on your phone plan

In addition to specific discounts, some companies offer other ways to save on your phone, such as signing up for autopay. Many companies offer a lower price if you choose this feature. It requires that you link a payment method to your account. The company will automatically charge your account for the full amount due each month. In exchange for this feature, you usually get $5 or more off your bill.

Changing your insurance plan can also help you save money. You should always compare the prices of new phones to the insurance you pay. If you pay $8 per month or more for insurance and can get a new phone for $150 or less, you may not need insurance. Many people drop their insurance when their phones age, too. Why pay a lot of money to protect a phone when you know you will need to upgrade it soon?

Some providers allow you to buy a new phone and make payments on it. When you pick out the phone, however, the company will add $20 or more to your total price. You can do the same thing with a tablet or another device. It’s easy to save money when you keep the same cellphone for longer. The downside to this is that some phones won’t be able to upgrade your operating system when they get past a certain age. You may find that it runs a little slower than you would like or that it’s no longer compatible with certain apps.

Though many phones now come with unlimited data, some still charge extra when you go over your data cap. If you have one of these plans, consider switching to a different one. You can also set up a reminder on your phone that alerts you when you near your data cap. In addition, the alert is helpful if your provider drops your data speed when you reach a certain level.

Can you bring your phone when you switch plans?

You can often bring your cellphone with you when you change plans or even providers. If you want to keep your phone number, though, you need to let both companies know that you need to port the number. This requires that the new carrier checks with your old carrier to make sure your account is in good standing. You will need to make sure you don’t owe any money on your phone or plan. The new carrier cannot port your number if you still have a balance on your old account. Porting your number usually takes two to three hours but can take up to 24 hours.

Should you upgrade your phone?

Just because you can bring your old phone, that doesn’t mean you have to stick with it. Experts often say you should upgrade your phone every two to three years. This ensures that you have access to the most recent operating system and all of the latest features. With some phones, you can get up to five or even six years before you need to upgrade. Some of the signs that you need a new phone include the following:

• The phone shows serious signs of damage, such as a cracked screen
• You can no longer update your operating system or any of the apps you use
• It drains the battery quickly and requires charging a few times a day
• Your phone runs too slowly

Buying a new phone for your plan

Phones from top brands like Apple and Samsung can easily cost $600 up to $1500, which is why many companies offer installment payment plans. This allows you to buy a phone and pay it off over a span of time. Though some plans do not charge interest for three to six months if you pay off the phone before then, others begin charging interest as soon as you buy the phone.

How is a prepaid plan different from a standard plan?

A standard or traditional phone plan asks you to sign a contract and stay with the provider for the amount stated in your contract. Although, with a prepaid phone, you do not need to sign a contract. You have the option of sticking with that company for years or turning off your phone after a single month. Prepaid plans require that you pay your bill at the beginning of the month; you then get a full month of service and receive a new bill at the end of the month. Prepaid plans give you the freedom to come and go as you please and can help you save money. Some companies offer unlimited calls, data, and texts for as little as $60 a month. These companies do not run credit checks, either. As long as you have a phone or buy one from them, you qualify for a phone plan.

Prepaid plans also come with coverage limits. Some of these providers require that you buy phone cards and load them onto your phone. Every text or photo message that you send and each minute you spend on a call or online will take points away from your card. When you run out of points, you need to buy a new one before you can use your phone again. One of the biggest downsides of prepaid plans is that they charge high rates for new phones. You may also find that you cannot make international calls through the phone and that the provider throttles your speed.

Do you need to sign a phone plan contract?

Whether or not you need to sign a contract depends on which company you choose. Contract phone plans are different from prepaid phone plans in that you need to both qualify for a plan and sign a contract. The provider will run a credit check, which will determine whether or not you need to pay a deposit. As long as you make your payments on time, you will either get your deposit back or find that the company applies it to your phone bill. Contracts can last for as little as a year or up to several years.

What are the pros and cons of contract phone plans?

Contract phone plans have benefits that include giving you priority on the network. Many phone providers offer both contract and prepaid phones. They give priority to contract phones when their networks are busy. You’ll find that you get better customer service, too, in that the company will respond to you faster and spend more time trying to make you happy. Another benefit is easily qualifying for a cheaper phone. These companies offer subsidized rates that allow you purchase phones for as little as $50. You may even find deals that give you a new phone when you port your number.

The cons of a contract phone plan are that you are locked into a plan that is more expensive. If you decide that you want to change carriers and are still under contract, you will likely need to pay a termination fee to get out. This fee can range from a few hundred dollars to more than $1,000. When you compare prices, you’ll find that you pay much more for a contract phone. Some of these plans cost more than $100 a month for a single line. Keep in mind that you may have fewer options, too, as some of these companies have a limited selection of phones and will not let you bring your own.

What should you look for in a phone plan?

The Big Four is a term that once described the four most popular cellphone companies in the United States: Verizon, T-Mobile, Sprint, and AT&T.  Since T-Mobile and Sprint merged, there are now three big companies along with multiple other smaller providers like Visible, Cricket, and Mint Mobile. You can spend hours comparing the available plans and still not feel comfortable picking one. Below are some of the most important factors to consider when picking a mobile phone plan:

Cost

Plans often start at around $40 a month, but Visible drops the price to $25 per month when you join a party line. T-Mobile charges the most at $170 per month, but this includes four lines. You can open a phone line for each member of your family or go in on a plan together with a few close friends. The cost of other plans ranges from $30 to $80 a month. It’s easy to find an affordable plan that works for you.

Coverage

You should never sign up for a mobile phone plan without making sure the company has coverage in your area. Many mobile phone companies have maps you can view online that show you where they have towers and what their network covers. Not only should you check for coverage around your home, but you should also look for coverage around your place of work and other areas you spend time in. Don’t assume that a bigger network is always better; a major city may have many people using the same network, causing the provider to throttle your speed.

Data speeds and caps

Every time you use the internet on your phone, you use data. Most phone plans today come with unlimited data, meaning you don’t need to keep an eye on how much you use because there are no limits. Some plans still give you a certain amount of data, though, like Cricket. Cricket offers different plans that include 10 GB of data or more. Even if you choose an unlimited plan, you will get a soft limit or cap. This tells you how much data you can use before the company will limit your speed. With a plan that has a cap of 50 GB, you’ll enjoy fast speeds until you hit this cap. Your speed will then drop until your next month of service begins. Make sure that you pick a plan that has the data speed and a cap that fits your lifestyle.

Roaming fees

Though not as common today, roaming fees still exist. This is a fee that applies when you use your phone from one carrier on a different network. Most phones have a small icon on the top of the screen that lets you know you are no longer in your network. If you receive a text message or talk to someone for just a few minutes, you need to pay a high fee when you’re outside of your network. Roaming fees apply to anything you do with your phone, including making phone calls, sending text messages, getting picture messages, or surfing the web.

Mobile hot spot

A mobile hot spot is a small device that gives you access to the internet. Many phone plans include a mobile hot spot option. If you live in an area where internet speeds are slow, you can connect your smart TV or video game console to your phone and use your data as an internet connection. Keep in mind that this usually only works with newer phones. You might have an older phone that cannot function as a hot spot. Some plans do not include this feature or require that you pay extra for it.

Grace period

The grace period might be as little as seven days but can be as long as 14 days and it allows you to use the phone and see how the plan works. If you don’t have coverage in your area or have any problems with the plan, you can cancel your contract before the grace period ends. Though some companies will keep the money you paid, others will refund you the total amount you paid minus the service you received during the grace period.

International options

Not everyone needs to make international calls, but many plans include this option. Not only do you want to see if you can make international calls through your plan, but you should also check where you can call. Many providers offer free international calling to Canada and Mexico but charge a fee to call other countries. Some plans give you a certain number of free minutes you can use on international calls and charge you if you go over this amount. You’ll also find plans that include free text and data messaging to other countries.

Total cost

Always look at the total cost you pay per month rather than just the advertised cost. Many companies advertise that you can get a new phone for free when you change carriers but do not inform you about the activation fee. Activation fees can cost as much as $50 plus tax. You also need to look at how much your bill costs when you factor in any taxes due. Depending on where you live, those taxes can increase your bill by 10-20% or more.

Entertainment benefits or perks

As a way to stand out from the competition, many mobile phone companies now offer entertainment perks or bonuses for customers. Many phone plans include free access to at least one streaming service app. Verizon now offers the Disney+ bundle for free with most plans. Not only can you watch your favorite Disney shows and films, but you get full access to Hulu, which allows you to watch even more content. This bundle also includes ESPN+ for sports fans. Both AT&T and Cricket (disclaimer: Crick is owned by AT&T), offer free access to HBO Max. You get both the streaming service and phone plan you need for a price lower than you would pay for each one on its own. Some companies also offer Amazon Prime for free when you sign up.

Party or group lines

You may need a phone plan that covers just one line that you use for personal reasons or two lines that you can use for personal reasons and work. Many carriers offer discounts if you have multiple lines, which can help you save money. Another option to consider is a group or party plan. These are plans designed for multiple people. You usually pay one price for your first line and get a discount on each additional line you add. T-Mobile has a plan that includes four lines of service. Visible also offers plans that include four or more lines. With Visible, you can join parties and sign up for plans with people you don’t know in real life.

Insurance

Though many phone plans come with optional insurance, it’s important to find out how it works and what it covers. It’s rare that you’ll find a plan with included insurance because you usually need to pay extra for coverage. Insurance plans often come from third-party companies that are affiliated with providers but are still separate. To file a claim, you need to contact the insurer directly. The company will charge you a deductible if you have one and will require that you send in your phone for repairs. It can take weeks for you to get your phone back.

4G vs. 5G

It’s important that you consider whether the company uses a 4G or 5G network. The biggest difference between the two is that 5G networks are much faster in terms of both downloading and uploading speeds. You can download a game quickly and surf the web without any lags. While 4G networks are better than the old 3G networks, they aren’t always as fast. Some companies have 5G networks in areas with a lot of people but will move you to a 4G network when you travel outside of metropolitan areas.