- 04-17-2012, 05:29 AM #2
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.
- 04-17-2012, 08:27 AM #8
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.
Last edited by Oridus; 04-17-2012 at 08:36 AM.
- 04-17-2012, 09:13 AM #9
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
- 04-17-2012, 12:01 PM #12
- 04-17-2012, 12:01 PM #13
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
- 04-17-2012, 12:16 PM #14
I broke my phone twice in two months last year. the first time I did the Assurance and paid $130 with Tmobile. The 2nd time, I took it into a repair shop and fixed the digitizer for $75 on my HD7.... I am thinking insurance is a waste unless if you are prone to loosing your phone. I would do total coverage for $9.99 for that :)
- 04-17-2012, 12:49 PM #15
The latest and greatest is only available to you if your current phone is no longer available, which probably won't happen for two years. By then you're already eligible for a new upgrade. I myself am always eligible for an early upgrade after just 18 months.
- 04-18-2012, 04:46 PM #19
How about this:
Samsung Focus bought in November 2010 breaks/gets lost today
You've paid $7*18 months = $126
Add $125 deductible = $251 total replacement cost
eBay shows a refurbished Focus costs $159, used $90. You've paid AT&T $251 for one instead. How did that trade end up for you?
This doesn't even take into account the fact you can upgrade to a better phone with a new contract.
Again, if you're losing your phone twice a year by all mean get the insurance. You're a "bad" insurance customer in that you're costing them money and benefiting from that.
- 04-18-2012, 04:49 PM #20
I've had good luck with squaretrade for phone insurance. It is now a bit more expensive and the deductible is higher. But with my Focus. It fell about a little over a month from when I got it, in a case, at just the right angle and the screen broke. The insurance cost me 94 or something like that. I had to pay a 50.00 deductible. And they ended up paying me full retail for the phone (close to 600). Att worked out some way to charge me an update renewal price of 250. So I made money off the deal. I've looked into their prices this time around. They are now 124 for 2 years insurance and 100 deductible, but you cam cancel at any time for a prorated refund. So if you bought and kept it for a year and then cancelled it, you'd get 62 back. Something else to think about.
Sent from my Lumia 900 using Board Express
- 04-18-2012, 05:17 PM #21
Even if you were to look at an iphone 4s 16 gig. If someone purchased that the day it came out, they paid $199. MSRP is $650. If they broke it today, they could pay $199 deductible, plus their $6.99 /mo which equals a grand total of $241.93. Ebay is showing new from: $519.99, refurbished from: $429.99 used from: $407.00 - So at this point in time, the consumer could do the insurance replacement, get a brand new 1 year warranty on the insurance replacement, or get a used or refurbished one at a $165.07 to $188.06 price increase for a grand total of with no new warranty or product guarantee. In this case, insurance would be a MUCH better choice. And that's assuming that the prices were "buy it now" and not for bid.
$241.93 seems better than $430 or $407
You're also assuming that the consumer goes almost the entire length of commitment before full subsidy is available again. Isn't it said that 1 out of 4 people either lose or break their phone or get it stolen in the 1st year of owner ship? (Per Asurion) - that's a huge amount of people... the odds aren't really in the favor of assuming people will go 20 months before something happens
So again, in a lot of cases, insurance is a very viable option for a lot of people who don't want to gamble if they're going to break it now, or if they're going to break it at the 20 month mark when they can get subsidized pricing again. In the majority of cases I see, people come out ahead cost wise by doing insurance rather than paying early upgrade/outright/used/refurbished pricing from a 3rd party or what have you....
All i'm saying - is for a lot of people and in a lot of cases, insurance is a better option - every time i've placed a claim for someone - i calculate the total cost they've paid and give them averages of what they would have paid paying outright or used online - and in most cases they come out ahead - with paying less, and getting a phone with a warranty on it, and convenience of overnight shipping for free. :)
is it for EVERYONE? No - but like I said, more often than not it's a very good investment.
Last edited by Oridus; 04-18-2012 at 05:34 PM.
- 04-18-2012, 05:50 PM #22
The mere fact that AT&T and Asurion make money off of cell phone insurance means that in total, they make more money from consumers than it costs to replace phones.
Thus, as a whole, consumers are paying more in insurance than the replacement cost of their phone.
The "bad" customers who replace their phone often cost insurers money, and the "good" ones who don't, more than make up for it.
I'm saying if you're a "good" one, self-insure. You can argue that the "bad" ones should get insurance. I'm fine with that and tired of trying to argue
- 04-18-2012, 06:25 PM #23
It is 2 in a rolling 12 month cycle
Sent from my Lumia 900 using Board Express(Disclaimer: I get a paycheck from AT&T working the front lines in a store. Unless AT&T publishes what I say as fact, these thoughts are all mine.)
- 01-03-2013, 02:57 PM #24
The defect replacement alone is worth it, I think my wife went through 4 or 5 Pre's and is on her 3rd Epic 4G (one under deductible of 99). That doesn't include any times I've gotten phone replaced under the defect category covered under TEP. It's not just lost or stolen, but covers defect and a lot of service issues as well. Yah, insurance isn't for everyone but for a 600 dollar phone, i'll get it every time.
- 01-03-2013, 03:30 PM #25
Unlike any other kinds of insurance, phone insurance isn't really calculated on a risk by risk basis. I am an insurance agent...unfortunately.
I work from home and have never broken a phone, not once. Any issues I've ever had with devices were covered under warranty - about 3 times in the past 10 years or so. Saying that, if I was a construction worker, used it outside of my house often, had a life, etc. I'd probably think of purchasing the insurance. However, with the way our phone plan is set up, there is almost always one of us eligible for an upgrade so it's not worth it to me.