Why would you not get insurance?

Phil A. said:

I've had iPhones since the very first one was released and never dropped one, never lost one and never had one stolen. So, over the course of 6 years, I'd have wasted $720 for nothing if I'd had your insurance and if I claimed today I'd still have the $170 deductible making it $890 for a replacement. Sounds like a ripoff to me!

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Phil A. said:

I've had iPhones since the very first one was released and never dropped one, never lost one and never had one stolen. So, over the course of 6 years, I'd have wasted $720 for nothing if I'd had your insurance and if I claimed today I'd still have the $170 deductible making it $890 for a replacement. Sounds like a ripoff to me!

You can get a replacement for a dropped / damaged phone for $230 (which is only $50 more than the deductible and @ $920 for 4, less than the cost you quoted with insurance (of which you are guaranteed to spend a large percentage whether you claim or not!)) and most household insurances either include lost / stolen phone or they can be added for a lot less than $10 a month


Insurance makes money for insurance companies (otherwise they wouldn't offer it) and is peddled to people by preying on their fear and ignorance. I have household insurance because (however unlikely it is), I could be cleaned out of tens of thousands of pounds worth of stuff if I was burgled. A phone? Not worth worrying over IMO (and, yes, I do know the off-contract price because I always buy them off-contract: I live in the UK and get far better airtime deals that way)

If it really was essential and everyone saved by taking it, there would be no insurance offered...

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spinedoc77 said:

Citing what one person "lost" because they had no claims makes no sense. Insurance is just that, insurance against something unforeseen for where you would rather pay the cost of the insurance instead of the entire cost of the item. Of course insurance companies make money (duh?). They make money off of a pool, the odds are that less people will make claims than the amount of money they collect, but that still doesn't mean no one makes claims.

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spinedoc77 said:

I am curious though, I never knew it was so cheap to replace a dropped phone. You are saying I can go into an Apple store and get a new (or refurb) iphone 5 32gb for $230? Is that past the first year warranty period?

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spinedoc77 said:

Citing what one person "lost" because they had no claims makes no sense. Insurance is just that, insurance against something unforeseen for where you would rather pay the cost of the insurance instead of the entire cost of the item. Of course insurance companies make money (duh?). They make money off of a pool, the odds are that less people will make claims than the amount of money they collect, but that still doesn't mean no one makes claims.

I understand there is a difference between calamity type insurance for things you cannot afford to replace out of pocket, eg homeowners, auto, etc. But I have had wayyyyyyy too many electronic devices fail on me after the first year where I won't consider getting a squaretrade warranty for them. Add to that their great accidental protection and now you are covered if you are stupid as well. Also consider you can have non removable batteries covered under the squaretrade warranty, seeing as how they only have 1000 or so charges that comes in very handy as well.

I am curious though, I never knew it was so cheap to replace a dropped phone. You are saying I can go into an Apple store and get a new (or refurb) iphone 5 32gb for $230? Is that past the first year warranty period? If that's the case then it does get murky when considering $85+$50 for a squaretrade warranty/deductible. Still, for me squaretrade is cheaper, and if my phone is ruined at least I get all of my money back in the form of a check and I can do what I please with it.

I used to be dead set against warranties as well for a long time. But having had to pay cash for full replacement of electronics which have broken throughout the years, TV's, smartphones, computers, laptops, etc. made me realize that eventually, sometime, someplace they are worth it. Insurance is one of those things you gripe about and hate until you actually have to file a claim, then you are thankful you had it.

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Phil A. said:

To be honest, that was just a response to the OP who provided outlandish figures of what you'd save based on losing 4 phones in 2 years: I was merely presenting the polar opposite view



See here: http://support.apple.com/kb/index?page=servicefaq&geo=United_States&product=iphone
and click the link that says "My iPhone is not eligible for warranty service. What are my service options?"

It's the replacement cost for out of warranty iPhones, which includes phones that are damaged and ones that are beyond the 12 month warranty period. You can just walk into an Apple store, drop your damaged phone on the counter along with $230 and walk out with a new (or as new refurb) device. This is the main reason why insurance for an iPhone makes no sense at all for me (particularly with the ridiculously high deductible most insurance companies charge)

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