IPhone insurance vs $199 replacement policy

[acrafton]

I was looking to purchase either Safeware or Squaretrade insurance for my new IPhone but it seems that these are less of a good deal than I originally thought. Each costs around $140 for two years (published rates) plus a $50 deductible. So if you have a claim for damage (Squaretrade doesn't cover theft) you will be out approx $170-190. But it appears that Apple will sell you a replacement for $199 for damage. Other than theft (Safeware only) or multiple damage claims these don't seem like a good deal, esp since Squaretrade will "fix" yours (or try) while Apple will sell you a new or refurb.

What am I missing here?

 

[Centient]

I was looking to purchase either Safeware or Squaretrade insurance for my new IPhone but it seems that these are less of a good deal than I originally thought. Each costs around $140 for two years (published rates) plus a $50 deductible. So if you have a claim for damage (Squaretrade doesn't cover theft) you will be out approx $170-190. But it appears that Apple will sell you a replacement for $199 for damage. Other than theft (Safeware only) or multiple damage claims these don't seem like a good deal, esp since Squaretrade will "fix" yours (or try) while Apple will sell you a new or refurb.

What am I missing here?

Well there's really very little reason to ever pay retail for a squaretrade warranty. There are coupon discount codes out there all the time. Through the end of the day you can use this code to get 30% off 07FOURTH. After today that code will net you 20% off.

 

[Bill Gates]

You're not missing anything. The people buying these warranties don't look at the costs objectively. If they did they wouldn't buy them. They're only worth it for repeat-offenders, i.e. the clumsiest of all.

 

[stphnman20]

You're not missing anything. The people buying these warranties don't look at the costs objectively. If they did they wouldn't buy them. They're only worth it for repeat-offenders, i.e. the clumsiest of all.

So it's just best to get the applecare since its just a one time thing?

 

[saccento]

purchase squaretrade.

 

[Bill Gates]

So it's just best to get the applecare since its just a one time thing?

I haven't looked at the failure rates to see if it's worth getting or not. Since it's $69 for only one extra year, with coverage limited to defects alone, I doubt it's worth it for most people. But as I said, I reserve judgement on it until I can study it further.

 

[doctapeppa]

I was looking to purchase either Safeware or Squaretrade insurance for my new IPhone but it seems that these are less of a good deal than I originally thought. Each costs around $140 for two years (published rates) plus a $50 deductible. So if you have a claim for damage (Squaretrade doesn't cover theft) you will be out approx $170-190. But it appears that Apple will sell you a replacement for $199 for damage. Other than theft (Safeware only) or multiple damage claims these don't seem like a good deal, esp since Squaretrade will "fix" yours (or try) while Apple will sell you a new or refurb.

What am I missing here?

I was giong to get square trade too untill I learned that apple will fix/replace a damaged phone that is out of warranty for $199. This is the better for me since it means no money out of my pocket unless I actually mess my phone up. Granted it's about $50 dollars more but, still a good trade off for the chance of keeping the money in my pocket.

 

[MacPossum]

Wait, am I understanding this correctly that with Applecare you get one $199 replacement phone with damage?

 

[doctapeppa]

Wait, am I understanding this correctly that with Applecare you get one $199 replacement phone with damage?

No apple care doesn't cover damage that your do to your phone such as dropping and breaking it or dunking it in water.

 

[hypoh]

Do you need to still be under warranty for Apple to sell you a replacement for $199? I would assume so. Your limited warranty lasts only one year, unless you buy Apple Care for $69. So in the end, your replacement from Apple would cost you more than $268. On the other hand, my replacement from Squaretrade would only cost me $130 (bought warranty for only $80, plus $50 deductible).

 

[Centient]

Wait, am I understanding this correctly that with Applecare you get one $199 replacement phone with damage?

Nope, you're not. Apple warranty and Apple care do NOT cover damages. You break it, you buy another one. So the story goes.

An AT&T guy actually tried to infer that Applecare would replace a cracked or drowned phone. When I called him on it, he admitted that it was at Apple's discretion to do so, but that he had friends of friends who had gotten such a deal...

 

[millerb7]

Do you need to still be under warranty for Apple to sell you a replacement for $199? I would assume so. Your limited warranty lasts only one year, unless you buy Apple Care for $69. So in the end, your replacement would cost you more than $268.

You DO NOT need to be under warranty... and you can get applecare for $35 off ebay. That's what I do.

 

[millerb7]

Nope, you're not. Apple warranty and Apple care do NOT cover damages. You break it, you buy another one. So the story goes.

An AT&T guy actually tried to infer that Applecare would replace a cracked or drowned phone. When I called him on it, he admitted that it was at Apple's discretion to do so, but that he had friends of friends who had gotten such a deal...

If you break your phone, EVEN OUTSIDE OF WARRANTY, apple will sell you a new one for $199, no additional contract.

I've done it before.

 

[Dsr1205]

I have a year upgrade cycle so i always buy the new iPhone. I bought a squaretrade because with a coupon it only cost me 87$ and if i break it its a 50$ fix cost. So new iphone for 137$ or $199 with apple? or 187$ for 2 new iphones with square trade or 199 for one with apple? unless i just bought into a scam, i don't see a downside.

Also, to get that 200$ price, don't u need your old broken one to turn in? Cause if u can go in and try to buy one for 200 without a contract, wont they look at you funny?

 

[Centient]

If you break your phone, EVEN OUTSIDE OF WARRANTY, apple will sell you a new one for $199, no additional contract.

I've done it before.

You're right. I misread his question.

My point is that Applecare should not be relied on to replace your phone. If that's your main motivator for buying it, don't bother.

 

[g8orballboy]

I have a year upgrade cycle so i always buy the new iPhone. I bought a squaretrade because with a coupon it only cost me 87$ and if i break it its a 50$ fix cost. So new iphone for 137$ or $199 with apple? or 187$ for 2 new iphones with square trade or 199 for one with apple? unless i just bought into a scam, i don't see a downside.

Also, to get that 200$ price, don't u need your old broken one to turn in? Cause if u can go in and try to buy one for 200 without a contract, wont they look at you funny?

Downside???
How about if you happen to say....I don't know....NOT break your phone? In this scenario, your down 137 with squaretrade and ZERO with apple...

 

[gouda272]

Do you need to still be under warranty for Apple to sell you a replacement for $199? I would assume so. Your limited warranty lasts only one year, unless you buy Apple Care for $69. So in the end, your replacement from Apple would cost you more than $268. On the other hand, my replacement from Squaretrade would only cost me $130 (bought warranty for only $80, plus $50 deductible).

This is not true. If Squaretrade cannot fix YOUR phone they send you the money left on your warranty so you can go pay retail for a replacement. I'm not saying this to knock Squaretrade, they cover both of my iphones and my ipads.

 

[tigress666]

I was looking to purchase either Safeware or Squaretrade insurance for my new IPhone but it seems that these are less of a good deal than I originally thought. Each costs around $140 for two years (published rates) plus a $50 deductible. So if you have a claim for damage (Squaretrade doesn't cover theft) you will be out approx $170-190. But it appears that Apple will sell you a replacement for $199 for damage. Other than theft (Safeware only) or multiple damage claims these don't seem like a good deal, esp since Squaretrade will "fix" yours (or try) while Apple will sell you a new or refurb.

What am I missing here?

If Apple will really sell you a refurb for 200 dollars, I think that's cheaper than Squaretrade (at least for the 32 GB). At least if I read their terms right.

You pay 100 for 2 years of coverage with Squaretrade. If you drop it, they only cover 550 dollars leaving you 150 dollars you still have to pay. That's 250 dollars right there, 100 that you pay regardless if you use the insurance or not.

So... by that math, the Squaretrade insurance is not a good deal at all. And it doesn't even cover theft or loss (the one thing buying a refurb from Apple won't cover either).

I wish State Farm would still insure cellphones. It was 50 dollars a year (or 100 dollars for a 2 year term which is average time your average geek like me keeps a phone before upgrading), no deductable, and covers full price. And it covered loss and theft.

 

[Dsr1205]

Downside???
How about if you happen to say....I don't know....NOT break your phone? In this scenario, your down 137 with squaretrade and ZERO with apple...

down 87 if i don't break it. But thats what insurance is man. You buy it to prevent something. It is useless if you never need it but awesome if you need it. I'm a college student, if i drop my phone at a party and it shatters the screen ill be sad panda, unless my awesome suaretrade warranty fixes it woooooooo.

If Apple will really sell you a refurb for 200 dollars, I think that's cheaper than Squaretrade (at least for the 32 GB)

You pay 100 for 2 years of coverage with Squaretrade. If you drop it, they only cover 550 dollars leaving you 150 dollars you still have to pay. That's 250 dollars right there, 100 that you pay regardless if you use the insurance or not.

So... by that math, the Squaretrade insurance is not a good deal at all. And it doesn't even cover theft or loss (the one thing buying a refurb from Apple won't cover either).

what?

 

[coelacanth]

I posted this in 30% off code thread, but ST will refund remaining prorated premium if you decide to upgrade before 2 year term is up. So it is still not a bad deal, but I'm feeling Apple's $199 is probably all I need as long as I'm confident that I can end up with a broken iphone in ONE piece after an accident. Apple's term states your broken phone must be in one piece, and a catastrophic damage (phone crashed into pieces after ran over by car or something) won't be covered. And if you are afraid of physically losing the phone, neither Apple nor ST will cover you.

Safeaware WILL cover lost/stolen phones, but the max pay-out is less than the full price of phone so you'll end up paying about $400 out of pocket (initial premium, deductible and exceeded cost of phone). That said, you can have multiple claims with one premium, and totall loss replacement will be cheaper than paying $599 + tax anyhow. I have SW coverage on iPad and MBP and they make sense to me, but im not sure about iphone because of significantly lower max payout compared to full retail price of the phone.

 

[acrafton]

I posted this in 30% off code thread, but ST will refund remaining prorated premium if you decide to upgrade before 2 year term is up. So it is still not a bad deal, but I'm feeling Apple's $199 is probably all I need as long as I'm confident that I can end up with a broken iphone in ONE piece after an accident. Apple's term states your broken phone must be in one piece, and a catastrophic damage (phone crashed into pieces after ran over by car or something) won't be covered. And if you are afraid of physically losing the phone, neither Apple nor ST will cover you.

Safeaware WILL cover lost/stolen phones, but the max pay-out is less than the full price of phone so you'll end up paying about $400 out of pocket (initial premium, deductible and exceeded cost of phone). That said, you can have multiple claims with one premium, and totall loss replacement will be cheaper than paying $599 + tax anyhow. I have SW coverage on iPad and MBP and they make sense to me, but im not sure about iphone because of significantly lower max payout compared to full retail price of the phone.

Where on the site does it say they cover lost or stolen iPhones? I can't find it.

 

[coelacanth]

Where on the site does it say they cover lost or stolen iPhones? I can't find it.

Are you sure? Im sure they say that upfront. That's their main sales point. Note, I'm talking about SafeWare (edit: though I misspelled "safeaware" at one point), not SquareTrade or Apple. See my post.

 

[Dsr1205]

safeware seems too good to be true. Whats the catch? Costs the about the same as Squaretrade but has the same coverage of the much more expensive mobileprotect. What gives?

 

[Rodimus Prime]

I was looking to purchase either Safeware or Squaretrade insurance for my new IPhone but it seems that these are less of a good deal than I originally thought. Each costs around $140 for two years (published rates) plus a $50 deductible. So if you have a claim for damage (Squaretrade doesn't cover theft) you will be out approx $170-190. But it appears that Apple will sell you a replacement for $199 for damage. Other than theft (Safeware only) or multiple damage claims these don't seem like a good deal, esp since Squaretrade will "fix" yours (or try) while Apple will sell you a new or refurb.

What am I missing here?

}.
I think it is a $125 deductible on the iPhone. I have not look at it completley but I want to assume the iPhone is a class 1 device and class 1 have a $125 deductible. Class 2's have the $50.

The reason people get insurance if for piece of mind.

 

[coelacanth]

}.
I think it is a $125 deductible on the iPhone. I have not look at it completley but I want to assume the iPhone is a class 1 device and class 1 have a $125 deductible. Class 2's have the $50.

The reason people get insurance if for piece of mind.

Which company are you talking about? I believe both SafeWare and SquareTrade state that the deductible is $50 per claim. (no deductible with ST if the defect is not accidental. I.E. Would be covered by apple's warranty but happened in the second year)