I wonder that too, but I'm going to venture and guess that's a tier 3 phone at $200 deductible range. Which would mean that if I broke my phone after a year, the cost of monthly payments, plus the deductible would bring it to about $300 to get it replaced. Which to me is no longer worth it. As you can tell, I've also thought about getting the insurance.
It is way more cost effective to self-insure than to pay AT&T / Asurion a fat margin to do it for you.Insurance on ANYTHING is EVER meant to be cost effective.... it's meant to make sure that you're not digging yourself a hole in the current time. It's a convenience thing.
$292.76 for 24 months of insurance plus 1 replacement of a phone at a $125 deductible with no new contract is better than $450 (using lumia as example) up front in the first 6 months, or $386 with new contract (including upgrade fee)..... then I could turn around a pay $100-200 plus $36 upgrade fee whenever I want for the latest and greatest phone.
It is way more cost effective to self-insure than to pay AT&T / Asurion a fat margin to do it for you.
Unless, of course you are an "adverse" candidate for insurance (i.e. you would lose/break your phone more than the normal person). Then take as much advantage of the insurance companies as possible. Although I do believe they limit the amount of claims you can file
It is way more cost effective to self-insure than to pay AT&T / Asurion a fat margin to do it for you.
Unless, of course you are an "adverse" candidate for insurance (i.e. you would lose/break your phone more than the normal person). Then take as much advantage of the insurance companies as possible. Although I do believe they limit the amount of claims you can file
Self-insure? Want to elaborate?
Self-insure? Want to elaborate?
Insurance on ANYTHING is EVER meant to be cost effective.... it's meant to make sure that you're not digging yourself a hole in the current time. It's a convenience thing.
$292.76 for 24 months of insurance plus 1 replacement of a phone at a $125 deductible with no new contract is better than $450 (using lumia as example) up front in the first 6 months, or $386 with new contract (including upgrade fee)..... then I could turn around a pay $100-200 plus $36 upgrade fee whenever I want for the latest and greatest phone.
Simply take the money you pay AT&T and set it aside yourself
Let's say you are a person who breaks/loses his phone once every 5 years
You pay to AT&T:
7*60 months = $420
Deductible = $125
Total = $545
AT&T purchases a used/refurbished phone (Cost ~$300-$400) and sends it to you
They take in anywhere from $145 to $245 in profit from you
Now just do this yourself and set aside $7 a month in some imaginary account (or even a real account in your bank or something)
Do the same math, but instead of AT&T pocketing profit, your insurance fund still has $145 to $245 in it.
Now obviously this depends on whether you are a good risk or not. If you're the type of person who breaks / loses their phone twice a year then you are an adverse customer that in a perfect world wouldn't be insurable or would have to pay much more for insurance. If that's the case, take advantage of AT&T/Asurion not knowing your behavior
However, for most normal individuals that aren't out breaking or losing their phones (and really, any type of consumer electronics), its almost always better to self-insure. Especially with things such as accidental protection built-in from credit cards. I would say doubly so in the case of cell phones with the ability to break contracts and get better pricing for phones, etc
Yep automobiles and consumer electronics are completely the same. Same risks and everything. Enjoy your ignorance
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If you like paying huge chunks of cash to replace a phone, that's fine. But most people I know, have much more important things to think about.