Choosing a Cell Phone Plan — Time and Distance

• Low Use If you see yourself keeping the phone in your glove compartment waiting for an occasionally flat tire, then choose the plan that offers the least amount of minutes. That way you won't be paying for free minutes you don't intend to use. To make economic sense, the rule of thumb is no more than 20 minutes of phone time per month. The going rate is 25 to 40 cents per minute, a value only when you are using the phone for security or emergencies.
• Average Use If you know you are going to use the phone more than 20 minutes but well under 500 minutes per month, look for a plan that costs around $25. You may have found that the minimum plan you started with is inadequate for your needs but you don't anticipate heavy phone usage.
• High Use These plans are convenient. You can use the phone anytime of the day for business or for friends with a $35 to $75 monthly fee, for 500 up to 2,000 minutes. With the highest usage, many people abandon their land phones and rely exclusively on their cell phones.

• Local coverage If you intend to use your phone just in your home area, this could be your best option. Once you dial out of your metropolitan area, however, you will be billed long distance charges at a premium rate. Travel farther afield and you will see "roaming" charges on your next bill at a much higher rate than your local fees.
• Regional coverage With a regional plan, your local area is expanded, usually covering multiple states. You get a flat rate for roaming and long distance within this area. It is important you know what areas in what states are covered, however. Make sure you get a map from the service provider so there are no surprises on your bill.
• Nationwide coverage Go where you want to go and call whoever you want to call. You'll get one flat, per minute rate for anywhere in the United States. If you are a heavy traveler or talk frequently outside your region, nationwide coverage is your best value.