1st Icon casualty

[Laura Knotek]

Why I generally shy away from insurance plans for some of these reasons, I've gotta say that the $6/month Asurian insurance through Verizon has paid off handsomely - THREE TIMES.

While I've never had to use it on my phone (knock on wood), my wife has dropped her HTC 8X into mugs of tea twice, and into a tub once. Sure, that's $72/year + $99 deductible for each incident. But that's three times in <2 years. I'm calling this is good investment - at least for her phone. For mine, they've just made $6/month off me.

That reminds me of this really old CrackBerry post dropped my bold in my beer - BlackBerry Forums at CrackBerry.com

 

[Robinsonmac]

So you're saying that the $4.125 I paid for the 1st month of insurance was not worth it? $99 for 2 years @ square trade. My deductable is only $75 With you logic I'd be out $550 to get a new phone. I have 2 high school kids who both have had phones that needed insurance claims, one fell into the ocean, another got knocked out of her hands, one got dropped. I suppose you don't have health insurnce, car insurance, mortgage insurance or life insurance either.....

I did have it cased but no case except maybe a life proof would have saved it. The phone landed glass down from 4' on a rock on concrete....

 

[Indistinguishable]

Because almost every "insurance" policy for phones is a laughable scam that favor the insurer. Calculate the total cost of most insurance plans over the life of the phone, add in the deductible on most plans, and compare to the cost of the device. Congratulations, you bought it twice. Alternatively, if you like, compare the cost of the insurance for a phone to that for legitimate big ticket items and note the variance between cost and replacement value. Again, the numbers do not add up in the user's favor. It is also the rare person who ever needs to cash in to replace the device and the even more rare person who breaks the phone the week they bought it. Sorry but most consumer electronic insurance plans remain just as much of a scam as they ever were in the past. Of course throw in the fact that many home owner or rental policies will also cover replacement costs, as will some credit cards, and standing advice from consumer organizations to avoid such policies remain unchallenged....

Yeah, there are some bad insurance policies out there. But that's not to say all consumer insurance policies are inherently scams. I think that for the amount of money paid for smartphones, and how delicate most of them are, there are some very reasonable insurance plans out there. I have never broken a phone in my lifetime, but I still purchased an insurance plan through the Microsoft store on this $600 phone.

Why? Because the peace of mind that comes with the fact that $50 gets me a brand new phone for the next 728 days is SO worth the $80 I paid for this insurance plan. I drop this phone once, and the insurance plan has covered itself more than three times over. Your math doesn't apply here, and neither does your condescending tone.

 

[airjeff]

I thought the MS insurance was $100 billed annually or $10 a month?

 

[Indistinguishable]

I thought the MS insurance was $100 billed annually or $10 a month?

I don't think so. One time payment of $100 with a $50 deductible to use the policy. Over two years, that comes out to about $4.17/month.

I'll check the paperwork when I return home from work this evening.

 

[berty6294]

I don't think so. One time payment of $100 with a $50 deductible to use the policy. Over two years, that comes out to about $4.17/month.

I'll check the paperwork when I return home from work this evening.

I believe you're right. That's what it was for my Surface.

 

[jlzimmerman]

Dang. That sucks

I don't do insurance because I accept the risk, and to me it is worth the risk. X dollars per month plus a deductible? No, thanks.

 

[Christopher Senn]

monthly charges and a $100 deductible or $150 will get you a replaced screen without insurance in most shops.
I never broke any of my screens. I dropped roughly 6 different types of phones several times always on cement. Never did anything crack or break.
Plus phone depreciation drops dramatically after a year. By the time your two years is up, your deductible may be worth more than your phone. I just risk it and avoid insurance.

 

[Indistinguishable]

Okay, did the math. The phone was $199.99 at the Microsoft store. The Insurance plan was $99.99 with a $50.00 deductible if I actually use the plan. The Microsoft store gave me 20% off my entire purchase for buying the phone and insurance plan at the same time. The total before tax came to $240.00.

Meaning, for only $40.00 on top of what I would have originally paid I now have: Two years of coverage on this purchase with the Microsoft Store that entitles me to a brand new device for an additional $50. No questions asked. I can make up to two exchanges.

To me, someone who took multiple risk management & actuary courses in college, that is SO worth it.

 

[Keith Wallace]

I think the peace of mind alone out weighs the cost. Especially through the Microsoft store. $100 for two years of insurance that covers everything except lost devices. $50 deductible really isn't that horrible when you're getting a brand new phone out of the box. You also get 20% off your purchase if you buy the insurance plan for the device at the same time. My store gave me that, anyway. Not sure if that's true for all Microsoft Stores or not.

It also enables me to roll without a case more freely.

It obviously depends on how error-prone you are. I had insurance on my first few phones, but I never needed it. I don't know if I had it on Verizon, but that phone survived as well. I have had two devices get warranty replacements for being defective (HTC Droid Incredible and Motorola RAZR), but I've never broken a phone before I upgraded. I'd rather not spend the money on insurance when I've got no track record of carelessness. I've dropped my 920 a few times, but it's taken no damage.

My cousin, on the other hand, insurance was MADE for him. He has lost two phones, I think. One was replaced through insurance, if I remember correctly. The second, he used the upgrade that my grandma never used and got a 900. He's been living with a cracked screen on that for probably close to half its life because he's careless.

But like I said, given that I'm relatively careful with my phones, I don't see a need for insurance for myself. My next phone will have something like this happen to my though, just because I said something about it.

 

[Kieta]

Some insurance is certainly a scam. But I think the insurance for these smart phones are worth the peace of mind. Accidents happen, that's why they call them accidents. I didn't initally get my Icon with Verizon insurance but they have open enrollment through March so I will sign up eventually. On the other hand my daughters have iphone 5c's and there was no way I would allow them to even use them without insurance. lol. Been lucky so far with them but they're kids and things happen. The decutible on those things is crazy though.

 

[willied]

If you're known to destroy phones then an insurance plan can be a good idea. For someone like me who hasn't broken their last 4 phones, it's most likely not worth it.

 

[realwarder]

For me $100 insurance and $100 deductible is was too much per phone. For my wife she has a case and despite being accident prone and dropping the phone all the time it's survived. Me, I don't have a case and have survived 3 falls without incident. If you're under contract, you only have to survive 2 years without a break... and a 520 would make a cheap filler.

 

[Robinsonmac]

This is my 1st broken phone & if you read my post, you would know it was knocked out of my hand from behind when a jogger bumped into me. I've gone 3 years prior without any issues. I got the Icon on the edge program which means so far I've paid $23 for the phone & $4.125 for insurance & another $20 +/- for taxes. As of today out of pocket I've spent $47.125 plus $75 to get a brand new replacement. I don't have to keep the phone for 2 years and most likely won't 12-18 months most likely.

 

[Kieta]

$100 insurance plus $100 deductible is a lot. But coming out of pocket $500 for a new phone is worse.

 

[Robinsonmac]

$100 insurance plus $100 deductible is a lot. But coming out of pocket $500 for a new phone is worse.

that's not what mine cost, $99 for 2 years plus $75 deductible, I pay my insurance monthly so as of today I'm only out $4.125 for insurance & $75 deductible. Plus I can cancel my insurance when ever I want.

 

[airjeff]

I noticed it when I was comparing prices between VZW and Microsoft. It could be different on the website vs. the store though...

 

[Robinsonmac]

I have square trade insurance

 

[realwarder]

$100 insurance plus $100 deductible is a lot. But coming out of pocket $500 for a new phone is worse.

But... a year after purchase it isn't a $500 phone, even new...

 

[Kieta]

But... a year after purchase it isn't a $500 phone, even new...

Depends on the phone. If you buy an iphone, it will certainly be that price. And a 928 is still 399 off contract.