Why would you not get insurance?

thehustleman · May 14, 2013

I've never understood this.

People deny insurance, then if they lose our break their phone they want to buy another AT THE CONTRACT PRICE!

90% of people didn't know how much phones really costed until T-mobile did what they did.

So if you buy a $600+ device that you carry with you daily, why wouldn't you want to protect it?

True story : I sell phones for Verizon for a living (GREAT money contrary to what people told me I'd make) and I sold a woman a phone, an iphone 5. She didn't want a case, she didn't want insurance. I suspected fraud at first, but she ported her number and traded in her old at&t iphone 4 so she was legit.

I practically begged her to get insurance, but she didn't. She claims "i don't drop phones" and when I explained how silly that was, that drops are accidents, no one does it on purpose and some people drop them due to other people bumping them unexpectedly or sometime else breaks it, she still refused, i wished her luck.

2 weeks later, she comes back to me just after her 14 days is up - she dropped her phone. She asks me to switch her phone out for a good one. Told her I couldn't do it because we can't take returns on damaged devices. She was upset, then said "fine, I'll buy another one" then when I rang up the device, she complained about the price, said I was cheating her, the phone is only 200, i explained the real price, told her it is only that price with a contract she says "i have a contract" i explained how it works, she wasn't happy, but me being me instead of saying "i told you so" I did my best to help her find a place to fix it.

Cheapest place wanted 300.

She ended up going to the apple store and paying 250 for a replacement.

I asked her about insurance, she said no and preferred apple care.

A month after that, she came back stating that her phone was stolen.

Said as she rode the train, at one stop some guy snatched it and ran off. To make matters worse she chased him and HE MACES HER IN THE FACE!

She recovers and asks if there was anything we can do, I told her no.

She asked if she could add insurance and I told her that it would be insurance fraud so it wasn't possible.

She cried.

My question is, u have a 650+ investment, what idiot wouldn't protect it against life?

It's a great value

The-Real-Deal82 · May 14, 2013

My iPhone is insured but I never consider buying insurance with the carrier that is selling to me. In the UK they tend to charge £10 a month for insurance when most people don't realise a good majority of home contents insurers cover smartphone losses and damages in their policies. I pay £380 a year to insure the entire contents of my house and am covered for up to £5,000 when out and about. I also get accidental damage insurance to cover gadgets to which the 'iPhone' is named in the small print.

nick9191 · May 14, 2013

Extended warranty? How can I lose!

0dev · May 14, 2013

Similarly to The-Real-Deal82, I have an insurance deal that covers me around for all my gadgets, although I only have it for up to £1,500 worth of stuff. Costs me a tenner a month and it covers damage, loss, and theft. Not a bad deal I reckon.

mlmwalt · May 14, 2013

I go

care +.

The smart phone insurance from VZ is expensive and has a high deductible. Had it on my BB Storm2 and never used it. I haven't lost a phone since 97.

Only had to learn that lesson once. If the deductible were more reasonable I'd consider it, but for most people it's a sucker's bet.

CEmajr · May 14, 2013

First iPhone I ever had (iPhone 3G) I had the best buy insurance for $7.99 per month. After 2 years I realized that I never used it and probably never would. Canceled it and never purchased insurance for my iPhones again. I keep my iPhone with me literally everywhere. Some people need it, some don't.

m00min · May 14, 2013

I don't take out any of the extended warrantee or insurance that shops try to peddle. Like the other posters, I have contents insurance that covers my phone far more cheaply than the rip-off prices phone shops push.

I'm careful with my stuff but if I did drop my phone and completely break it I would still be ahead buying a SIM free replacement compared to all the money I could have wasted on phone insurance.

Interstella5555 · May 14, 2013

You should probably save your sales pitch for your customers.

SR45 · May 14, 2013

Here is a sales pitch for ya...

I'd rather have it, and not need it, than need it, and not have it. Common sense when it will only take one issue or loss.

Make jokes all you want, but don't come running back here and whine about your damaged phone or its loss.

Wicked1 · May 14, 2013

thehustleman said:
I've never understood this.

People deny insurance, then if they lose our break their phone they want to buy another AT THE CONTRACT PRICE!

90% of people didn't know how much phones really costed until T-mobile did what they did.

So if you buy a $600+ device that you carry with you daily, why wouldn't you want to protect it?

True story : I sell phones for Verizon for a living (GREAT money contrary to what people told me I'd make) and I sold a woman a phone, an iphone 5. She didn't want a case, she didn't want insurance. I suspected fraud at first, but she ported her number and traded in her old at&t iphone 4 so she was legit.

I practically begged her to get insurance, but she didn't. She claims "i don't drop phones" and when I explained how silly that was, that drops are accidents, no one does it on purpose and some people drop them due to other people bumping them unexpectedly or sometime else breaks it, she still refused, i wished her luck.

2 weeks later, she comes back to me just after her 14 days is up - she dropped her phone. She asks me to switch her phone out for a good one. Told her I couldn't do it because we can't take returns on damaged devices. She was upset, then said "fine, I'll buy another one" then when I rang up the device, she complained about the price, said I was cheating her, the phone is only 200, i explained the real price, told her it is only that price with a contract she says "i have a contract" i explained how it works, she wasn't happy, but me being me instead of saying "i told you so" I did my best to help her find a place to fix it.

Cheapest place wanted 300.

She ended up going to the apple store and paying 250 for a replacement.

I asked her about insurance, she said no and preferred apple care.

A month after that, she came back stating that her phone was stolen.

Said as she rode the train, at one stop some guy snatched it and ran off. To make matters worse she chased him and HE MACES HER IN THE FACE!

She recovers and asks if there was anything we can do, I told her no.

She asked if she could add insurance and I told her that it would be insurance fraud so it wasn't possible.

She cried.

My question is, u have a 650+ investment, what idiot wouldn't protect it against life?

It's a great value

The carrier's insurance is a rip off, you pay like $10-$12 per month and the original $200 for the phone, then Assurion charges you a $200 deductible?

Someone is making a lot of money on this, also Best Buy's Geek Plan is another rip off, you give them a broken iPhone 5 they give you some cheap phone and the two people I know who had their phones fixed by them never really were fixed correctly?

I would rather pay $99 for Applecare, gives me a second year of warranty, and two accidental replacements over 24 months with only a $50 deductible per incident?

I have had every iPhone since the 3G and handle my phones with care, never had an issue but do use a case, in fact with the 5 I sprung for the Life Proof case and I do not regret it.

I think people just need to take better care of their devices, you did your best to help the consumer but they always come back crying after they ignore advice, feel sorry for her in one way, but then in another way she got what she deserves.

MacDawg · May 14, 2013

Simple, I know the risk and I am willing to take it

hexonxonx · May 14, 2013

MacDawg said:
Simple, I know the risk and I am willing to take it

Same. Owned every phone since the original. I dropped a 4S once, it landed on a corner and slid about six feet across the floor. It was fine, just chipped the plastic surrounding the glass on one corner. I sold it here and bought a new one.

Still don't have insurance on my new 4S and still am caseless.

Knowimagination · May 14, 2013

MacDawg said:
Simple, I know the risk and I am willing to take it

Exactly. Add to that that I have had every iPhone except the 3G and have never needed a replacement, and I would come out way worse had I been paying insurance. If I do damage one I am willing to pay the 229 to get an OOW replacement and move on, and since I have never wasted money paying for insurance I will still come out ahead.

eyoungren · May 14, 2013

This has been discussed several times here.

Some people feel they are careful and rationally price out the cost of insurance/Applecare+ and replacement if not insured/covered. Some people, such as above, are covered by other plans already. Some credit card companies cover you, so this is not a necessary purchase in that case.

Others prefer to simply have the insurance/Applecare+. I am in the second camp. I'm careful with my phones, but I can never account for the inconsiderate and clumsy people that plague me in my life, especially one person I have to work with daily. I cannot afford the price of an OoW replacement, even when that cost might in the long run be cheaper to me overall.

Accidents can happen even to the most careful people. But it's a risk that many feel entirely confident in taking after weighing the costs.

jayrflow · May 14, 2013

I have the Verizon insurance which I know is a rip off but I don't think I was able to get AppleCare since my iphone 5 was used and off of eBay. But when the iphone 5S (or 6 which ever the next will be) comes out and I buy it brand new, I'm most likely going to AppleCare. They charge $200 for a replacement iphone 5 32GB and $10 a month with Asurion which is pretty expensive. Does AppleCare cover theft/loss? I've never had it happen to me but you never know with the way the crime rate is going on in my town

passey · May 14, 2013

I have it with my bank account

£17 a month for me and the wife breakdown cover, phone insurance and travel insurance.

£50 excess on teh phones but covers stolen, damaged and accidental damage.

thehustleman · May 14, 2013

mlmwalt said:
I go care +. The smart phone insurance from VZ is expensive and has a high deductible. Had it on my BB Storm2 and never used it. I haven't lost a phone since 97. Only had to learn that lesson once. If the deductible were more reasonable I'd consider it, but for most people it's a sucker's bet.

CEmajr said:
First iPhone I ever had (iPhone 3G) I had the best buy insurance for $7.99 per month. After 2 years I realized that I never used it and probably never would. Canceled it and never purchased insurance for my iPhones again. I keep my iPhone with me literally everywhere. Some people need it, some don't.

Interstella5555 said:
You should probably save your sales pitch for your customers.

SR45 said:
Here is a sales pitch for ya...

I'd rather have it, and not need it, than need it, and not have it. Common sense when it will only take one issue or loss. Make jokes all you want, but don't come running back here and whine about your damaged phone or its loss.

Wicked1 said:
The carrier's insurance is a rip off, you pay like $10-$12 per month and the original $200 for the phone, then Assurion charges you a $200 deductible?

Someone is making a lot of money on this, also Best Buy's Geek Plan is another rip off, you give them a broken iPhone 5 they give you some cheap phone and the two people I know who had their phones fixed by them never really were fixed correctly?

I would rather pay $99 for Applecare, gives me a second year of warranty, and two accidental replacements over 24 months with only a $50 deductible per incident?

I have had every iPhone since the 3G and handle my phones with care, never had an issue but do use a case, in fact with the 5 I sprung for the Life Proof case and I do not regret it.

I think people just need to take better care of their devices, you did your best to help the consumer but they always come back crying after they ignore advice, feel sorry for her in one way, but then in another way she got what she deserves.

mlmwalt said:
I go care +. The smart phone insurance from VZ is expensive and has a high deductible. Had it on my BB Storm2 and never used it. I haven't lost a phone since 97. Only had to learn that lesson once. If the deductible were more reasonable I'd consider it, but for most people it's a sucker's bet.

Only problem with apple care - a problem I REALLY wish that they'd go ahead and fix is it doesn't cover loss or theft. There's no good reason for them NOT TO cover that, but I guess it is, they feel that they'd get you to buy another one easier.

CEmajr said:
First iPhone I ever had (iPhone 3G) I had the best buy insurance for $7.99 per month. After 2 years I realized that I never used it and probably never would. Canceled it and never purchased insurance for my iPhones again. I keep my iPhone with me literally everywhere. Some people need it, some don't.

It's one of those things like life insurance, car insurance, health insurance - you never know you need it until it's too late. You always hope you NEVER need it, but just in case - it's there. Let's say you leave it in the car to run into a place for literally 2 minutes - come back, window is busted and phone is gone or you get robbed and the phone taken. I bet you'd wish you had that insurance then lol.

Interstella5555 said:
You should probably save your sales pitch for your customers.

It's not a sales pitch, I'm not trying to sell anything to anyone here let alone meet anyone here. It's just real talk - why wouldn't you want to protect such an investment? I mean if you have oodles and oodles of spare cash I can understand but in other cases, why not protect your investment?

SR45 said:
Here is a sales pitch for ya...

I'd rather have it, and not need it, than need it, and not have it. Common sense when it will only take one issue or loss. Make jokes all you want, but don't come running back here and whine about your damaged phone or its loss.

yep. I've seen it on this very website - no insurance, broke/damaged the phone then they want to complain about it

Wicked1 said:
The carrier's insurance is a rip off, you pay like $10-$12 per month and the original $200 for the phone, then Assurion charges you a $200 deductible?

Someone is making a lot of money on this, also Best Buy's Geek Plan is another rip off, you give them a broken iPhone 5 they give you some cheap phone and the two people I know who had their phones fixed by them never really were fixed correctly?

I would rather pay $99 for Applecare, gives me a second year of warranty, and two accidental replacements over 24 months with only a $50 deductible per incident?

I have had every iPhone since the 3G and handle my phones with care, never had an issue but do use a case, in fact with the 5 I sprung for the Life Proof case and I do not regret it.

I think people just need to take better care of their devices, you did your best to help the consumer but they always come back crying after they ignore advice, feel sorry for her in one way, but then in another way she got what she deserves.

How is insurance a rip-off?

it's 10 dollars a month which is 120 a year and let's say you make the MAX claims (2 per year). In that first year, you spent 120 on insurance.

the first claim at 170 for the deductible.

You just got a 650 phone for only 390 bucks total.

File another claim? Another 170 and now you're looking at 560 - LESS THAN the price of ONE replacement and you've had TWO replacements.

2 years and 4 claims will get you 1,120 dollars spent, but you just got 4 replacements over 2 years. You can't even find 4 iphone 5's on CRAIGSLIST in working order for that price.

If you re-buy it, you're looking at 1,300 for the first year in replacements, and 2,600 over 2 years.

How is that a ripoff?

Meanwhile applecare is 99 bucks, but it doesn't cover loss, or theft.

adam044 · May 14, 2013

Because I'm careful with my phone... I've had every iPhone starting with the 4 and never broke one... Until my 5 which I was stupidly using outside in the snow and it slipped out of my hand. Just went to apple and got a new one

barkomatic · May 14, 2013

thehustleman said:
Only problem with apple care - a problem I REALLY wish that they'd go ahead and fix is it doesn't cover loss or theft. There's no good reason for them NOT TO cover that, but I guess it is, they feel that they'd get you to buy another one easier.

I get Applecare because I'm much more likely to drop my phone or accidentally expose it to moisture than experience a loss of theft. Therefore, its worth it to me to have those issues covered.

It's simply not worth it to pay $10 to $12 a month for third party insurance and *then* pay a huge deductible. It's cheaper than a new iPhone *only* if your iPhone is lost or stolen. In the much more likely scenario in which your iPhone is damaged--it's much cheaper and easier to get Applecare.

At any rate, Applecare is rumored to be changing soon--so perhaps this equation will change.

ckurt25 · May 14, 2013

I Never Buy Ins

I've been carrying smartphones for about 10 years, dating back to the Palm Treos. In that time, I've damaged 1 device, my iPhone 5, where I needed to replace it. I shattered the screen and brought it to Apple and it was replaced for approximately $240. How much money would have I wasted on insurance during that time? If I damage a phone to the extent of my iPhone 5 once every 4/5 years and not even once every 10, I'm still making out by foregoing insurance.

If the insurance rates made good economical sense (they sure don't in the US), I may change my mind. If you're the type of person that is damaging a phone once every year or two then sure, it make make sense but I'd suggest being more careful with your things so you're not throwing money away.

makotoisle · May 14, 2013

thehustleman said:
Only problem with apple care - a problem I REALLY wish that they'd go ahead and fix is it doesn't cover loss or theft. There's no good reason for them NOT TO cover that, but I guess it is, they feel that they'd get you to buy another one easier.

It's one of those things like life insurance, car insurance, health insurance - you never know you need it until it's too late. You always hope you NEVER need it, but just in case - it's there. Let's say you leave it in the car to run into a place for literally 2 minutes - come back, window is busted and phone is gone or you get robbed and the phone taken. I bet you'd wish you had that insurance then lol.

It's not a sales pitch, I'm not trying to sell anything to anyone here let alone meet anyone here. It's just real talk - why wouldn't you want to protect such an investment? I mean if you have oodles and oodles of spare cash I can understand but in other cases, why not protect your investment?

yep. I've seen it on this very website - no insurance, broke/damaged the phone then they want to complain about it

How is insurance a rip-off?

it's 10 dollars a month which is 120 a year and let's say you make the MAX claims (2 per year). In that first year, you spent 120 on insurance.

the first claim at 170 for the deductible.

You just got a 650 phone for only 390 bucks total.

File another claim? Another 170 and now you're looking at 560 - LESS THAN the price of ONE replacement and you've had TWO replacements.

2 years and 4 claims will get you 1,120 dollars spent, but you just got 4 replacements over 2 years. You can't even find 4 iphone 5's on CRAIGSLIST in working order for that price.

If you re-buy it, you're looking at 1,300 for the first year in replacements, and 2,600 over 2 years.

How is that a ripoff?

Meanwhile applecare is 99 bucks, but it doesn't cover loss, or theft.

What if you didn't have to make any claims that year? You spent $120 for nothing.

I mean, I understand your point, kind of. But where do we draw the line? I guess I should also probably get pet insurance, long-term disability coverage, and flood insurance, too. I guess I might get hit by a car tomorrow so I should tack life insurance on there as well.

The fact of the matter is that most people don't need insurance. You come on the forums and hear all the sensational stories and get worked up, but you don't get a million people posting every day, "I didn't get my phone stolen today, yeehaw!" Insurance companies are there to make money and they don't do that by offering a service where the odds aren't in their favor.

I read somewhere once that insurance is always a gamble. If you get it, you are betting that you are going to break your device. If you don't get it, you are gambling you won't. I'd rather gamble in favor of myself, than against.

dukebound85 · May 14, 2013

Interstella5555 said:
You should probably save your sales pitch for your customers.

No kidding

Besides, my CC protects me...FOR FREE

Also, 600 bucks is really not that much. It is not like I am insuring a car or a house that can have potentially tens of thousands in claims

wacky4alanis · May 14, 2013

If you're too poor to replace your iPhone, or too irresponsible to take care of it, then you probably shouldn't even have it to begin with. Gadget insurance and extended warranties are generally a big ripoff and huge money makers for the people who sell them. Why do you think the stores try so hard to sell them? To protect you?? LOL

SMDBill · May 14, 2013

Had I bought all the warranties for all the items I have purchased I would never have had money to make those purchases. We each have to look at our situations individually and decide which item is worth risking without warranty and which are good investments. My washing machine...thank goodness I spent the $150. It got fixed twice with expensive parts each time, without any cost to me. Labor alone would have exceeded $300, plus the service call fee, parts, etc. Money well spent, but it was a newer model and my gut told me to protect that $1000 investment due to unproven maturity in the design.

However, I never buy them for cars. I am simply willing to risk the repair, regardless if it's a $4000 engine or a $10 light. I have owned so many cars that I literally could by a new car with what I saved in warranty coverage over the years. And I have never put more than $1000 in repair money back into a car so it's wasteful in my eyes for them.

Phones, though, I do protect with Applecare. I have some clumsy family members and I just can't risk them taking a chance with an expensive product. I just hate the fees through the carriers so iPhones with Applecare are my preference.

lordofthereef · May 14, 2013

Your thoughts immediately go to fraud if a person buys a phone without a case or insurance? That's... Interesting.

Why would you not get insurance?

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