How much is the accidental damage replacement cost once you have bought apple care?
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Apple care in general
- Thread starter craigo14
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So just to clarify, you have personal issues with others using totally legal means, they they have every right to use, to benefit themselves?
It's fine if you do.
I don't like the way Apple and other companies use legal tricks, by specially employing people to find ways around laws to benefit them financially.
However, I find, if companies do this, and do it blatantly to save themselves millions of dollars they should morally be paying, then I cannot them chastise an individual using a legal method to benefit themselves just a few dollars here and there, as that would be having double standards.
I don't like buying things for peace of mind. I'm a lawyer, so I use Hand's Rule. Here's how my analysis of Apple Care for my iPhone goes.
Some numbers: $99 for AppleCare plus $79 per service incident. $129 for uncovered screen replacement (6+ model), $329 for full replacement.
So, there are two scenarios to cover, screen replacement and device failure. I'm going to have to estimate the probability of both, and that changes from person to person, including whether or not you use a case. I'll say there's a 1 in 5 (20%) chance I'll break my screen, and a 1 in 100 (1%) chance I break my phone. I'm also assuming if I break it once, I won't do it again.
So, let's do some math. It costs $178 with AppleCare to fix a broken screen versus $129, so if there is a 100% chance of breaking the screen it's still not worth it. But using Hands Rule, you multiply the uncovered repair costs by the percent chance it will happen (20%) then compare that with the cost of repair under AppleCare. So $178>$25.80($129x.20), meaning AppleCare is definitely not worth it.
But AppleCare covers full replacement which is much more costly. It still only costs $178 to fully replace under AppleCare, but $329 without. Seems worth it, right? Use Hand's Rule. $178>$32.90($329x.01).
So when is AppleCare worth it? For a single screen replacement: never. For a full replacement: when there is a 54% chance you will break your phone in 2 years ($178/$329). You could get a little more complicated adding the benefits of both screen and full replacement together but honestly, it still doesn't work out for me. I've had many iPhones, as has my wife, and we've only needed 2 screen replacements, and one was covered under the standard one-year manufacturers warranty.
Some numbers: $99 for AppleCare plus $79 per service incident. $129 for uncovered screen replacement (6+ model), $329 for full replacement.
So, there are two scenarios to cover, screen replacement and device failure. I'm going to have to estimate the probability of both, and that changes from person to person, including whether or not you use a case. I'll say there's a 1 in 5 (20%) chance I'll break my screen, and a 1 in 100 (1%) chance I break my phone. I'm also assuming if I break it once, I won't do it again.
So, let's do some math. It costs $178 with AppleCare to fix a broken screen versus $129, so if there is a 100% chance of breaking the screen it's still not worth it. But using Hands Rule, you multiply the uncovered repair costs by the percent chance it will happen (20%) then compare that with the cost of repair under AppleCare. So $178>$25.80($129x.20), meaning AppleCare is definitely not worth it.
But AppleCare covers full replacement which is much more costly. It still only costs $178 to fully replace under AppleCare, but $329 without. Seems worth it, right? Use Hand's Rule. $178>$32.90($329x.01).
So when is AppleCare worth it? For a single screen replacement: never. For a full replacement: when there is a 54% chance you will break your phone in 2 years ($178/$329). You could get a little more complicated adding the benefits of both screen and full replacement together but honestly, it still doesn't work out for me. I've had many iPhones, as has my wife, and we've only needed 2 screen replacements, and one was covered under the standard one-year manufacturers warranty.
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$1000/year cost of insurance. 1/1000 chance I hit and kill someone and would be liable for $250,000 in damages. $1000>$250, so not worth it by my rule. BUT, car insurance is a different animal because it relates to the rights of another person. Many people can't afford to pay out the high cost of an accident, so the victims of the accident would be left uncompensated. Health, car and home insurance cover costs that people would otherwise be incapable to paying. That's different from peace of mind, and it's part social contract. But insurance companies need to make a profit so the cost of insurance has to be greater than the cost of repair.
If you can afford the cost of replacing your car after a crash, it's better to have no insurance (though states require liability to ensure you don't squelch on paying victims of a crash).
But everyone who buys an iPhone new should be able to cover $329 no problem.
And this gets worse when it comes to the Watch because 1) you're far less likely to drop it compared to the iPhone as it's tethered to the wrist and 2) it's IPX7 water resistant so the standard warranty will cover water damage.
Just charge it to an Amex or equivalent and you get double the standard warranty free of charge.
That's why I said by that rule liability insurance is the only thing that makes sense. Also, if you do not have a claim AppleCare refunds you a prorated amount.
Say a year in I want to cancel my AppleCare b.c I sell my phone, I would get $50 back on an iPhone. $50 is worth peace of mind IMO.
Apple Care in Europe is pretty useless, we got 2 year warranty under the EU Law and i got 2 years of Damage/lost/stolen insurance on all the products i buy with my MasterCard. (So i buy all my Apple stuff with it)
I know you guys in the us don't have 2 year warranty but do you guys don't have the automatically MasterCard insurance?
How does this work in de USA? Replacement trough the MasterCard plan is even cheaper than Apple Pay, 50,- euro ($60,-) per incident without a starting fee like Apple Care.
I know you guys in the us don't have 2 year warranty but do you guys don't have the automatically MasterCard insurance?
How does this work in de USA? Replacement trough the MasterCard plan is even cheaper than Apple Pay, 50,- euro ($60,-) per incident without a starting fee like Apple Care.
In the U.S. We get a one year manufacture warranty. It covers defetects, not damage. If you buy the watch with certain credit cards it extends this warranty by a year.
AppleCare+ covers damage. If you break the screen, have water damage, etc. it is covered with a deductible.
Oke so buy it with a certain credit card gives you extra warranty but no Insurance?
Maybe then Apple Care is indeed it's money worth for you guys.
The third year of Applecare on computers is rather useful, though, and I have had occasion to use it then, and was most grateful that I had it.
AppleCare?
I never leave the store without it...
Likewise.
Correct about the warranty on certain credit cards. In the U.S. we have to buy the insurance for damage separately.
AC+ provides accidental damage insurance, not loss or theft insurance. If you wanted loss or theft insurance, you'd have to use a third party.
I still think it's not worth the money because the Watch is tethered to your wrist so you're far less likely to drop it compared to the iPhone and water damage claims would be covered under the standard warranty and the CC extended warranty in the 2nd year.
You are very misinformed if you think it's legal. It's not. It's insurance fraud.
Applecare is no longer a warranty product, but an insurance product (e.g. in the UK it doesn't have VAT, but instead has IPT). That is an insurance product which covers accidental damage. Accidental damage is not done on purpose. Claiming purposeful damage be accidental for the purposes of an insurance claim is misrepresentation and, legally, fraud.
It's no different to:
- Scratching your car paintwork, so reversing into a wall and claiming it was an accident so that the insurance company will repaint it
- Deciding you want a new carpet, so pouring a can of paint on the carpet and claiming that you accidentally spilled it to your home insurance company
- Having your suitcase go missing from the airport, and telling your travel insurance company that you had lots of valuables in there when you didn't
It's fraud, and not legal. So please stop spreading such nonsense.