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AppleCare+ Is A Giant Ripoff!

If you think Applecare will cover your drop in concrete damage for a $79 copay, why wouldn't they cover it without applecare? I own an ipad air which my kid shattered the glass and I did not have applecare, they quoted a replacement at the same $329 or so price point.

You are already in the hole for $100 and further another $79 with the copay, so you definitely are not getting anything for free. Further with my Amex extended warranty, I can invoice the repair cost and get it refunded.

Mind you, I have done applecare in the past for all my iphones, but after looking at the costs and how I handle my phones, I feel it doesn't make much sense in getting it this time over.

Statistically it has been shown it makes no sense to get the extended care warranty, if you total up the $ spent in all the extended cares one ends up getting, you will end up spending a lot more $ than possibily saving in repair/replacement costs.

At the end of the day, even after the math if anybody chooses to get extended care warranty, it is just their personal choice which really is none of my business, but definitely not based on logic.

deviant said:
Suppose you drop your phone on concrete. And someone steps over it. It's irreparable. Will they still charge only 329 and give you a new phone, just because you already had an iPhone?

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Like one smart man said : any insurance is a ripoff. Until something happens.
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deviant said:
Suppose you drop your phone on concrete. And someone steps over it. It's irreparable. Will they still charge only 329 and give you a new phone, just because you already had an iPhone?

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Like one smart man said : any insurance is a ripoff. Until something happens.
Click to expand...

Yes. It's $329 even if your phone is completely destroyed. (But you need to have a recognizable phone on your hand.)
 
Blorzoga said:
Right, so you break your phone and take it to an Apple Store. Then I suppose you just tell them that you have an extended warranty through your credit card and they immediately bow down and kiss your feet and proceed to repair your phone free of charge. Wrong. They tell you, that's nice, but you'll have to pay for the repair and then chase down your credit card company and file a claim and wait for a reimbursement. And I don't think the credit card company will pay any more than you paid. So if you need an $800 phone replaced that you bought in contract, you're SOL.

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Brilliant!

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I hope you don't have the same philosophy when it comes to medical insurance for your family.
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Actually Amex (and other credit card companies give you a choice).

1. Get repair estimate. Send it in. Wait till it gets approved (usually less than 7 business days). Amex (visa etc) will reimburse you a check so you can use that check to pay for repair/replacement.

2. Wing it. Pay for repair/replacement yourself. Send in repair/replacement receipt. And Amex will credit you usually within 7 business days. (That's the option I choose always)

And for those who claim they can't do step one. It's a BS excuse. You can go buy yourself a cheap ATT go flip phone for $15 at best buy or Walmart etc. live with that flip phone for a week or so till your warranty gets approved (or denied).
 
b1scu1t said:
If you think Applecare will cover your drop in concrete damage for a $79 copay, why wouldn't they cover it without applecare? I own an ipad air which my kid shattered the glass and I did not have applecare, they quoted a replacement at the same $329 or so price point.

You are already in the hole for $100 and further another $79 with the copay, so you definitely are not getting anything for free. Further with my Amex extended warranty, I can invoice the repair cost and get it refunded.

Mind you, I have done applecare in the past for all my iphones, but after looking at the costs and how I handle my phones, I feel it doesn't make much sense in getting it this time over.

Statistically it has been shown it makes no sense to get the extended care warranty, if you total up the $ spent in all the extended cares one ends up getting, you will end up spending a lot more $ than possibily saving in repair/replacement costs.

At the end of the day, even after the math if anybody chooses to get extended care warranty, it is just their personal choice which really is none of my business, but definitely not based on logic.
Click to expand...


I don't know how it is in the US, but here in europe I paid 1200$ for my fiancé 6 plus. If she drops it and it's not only the screen - it's already 400$ for the repair. 99+79 makes more sense. Again, i don't know how it is in the US, but here it's a bargain. I mean, it's not for the extended warranty (we already get 2 years under EU regulation) It's all about accidental damage.

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haruhiko said:
Yes. It's $329 even if your phone is completely destroyed. (But you need to have a recognizable phone on your hand.)
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I just read italian support page and it says that out of warranty repairs are very selective and apple may choose not to repair it for you, especially if it's damaged in more than 1 place or if it has been modified (i guess even a jailbreak will make them reject your request). Again, i guess it's different for you than for us. For me, 179 (applecare+ plus the 79 fee) buys me peace of mind for 2 years that if she drops her new 1200 toy and destroys it, it will only be 179 instead of new 1200 bucks. I can have 3 iphones in a 2 year span for 1500 vs 3600.
 
aneftp said:
Actually Amex (and other credit card companies give you a choice).

1. Get repair estimate. Send it in. Wait till it gets approved (usually less than 7 business days). Amex (visa etc) will reimburse you a check so you can use that check to pay for repair/replacement.

2. Wing it. Pay for repair/replacement yourself. Send in repair/replacement receipt. And Amex will credit you usually within 7 business days. (That's the option I choose always)

And for those who claim they can't do step one. It's a BS excuse. You can go buy yourself a cheap ATT go flip phone for $15 at best buy or Walmart etc. live with that flip phone for a week or so till your warranty gets approved (or denied).
Click to expand...

For repairs / damage, Amex is better ...

... but I ALWAYS buy AppleCare for one reason: the 2 years of tech support by phone.

Normal warranty includes 90 days of phone support. I figure $100 for two years of unlimited phone support is worth it. Better than having a problem on Day 100.
 
whitehall said:
For repairs / damage, Amex is better ...



... but I ALWAYS buy AppleCare for one reason: the 2 years of tech support by phone.



Normal warranty includes 90 days of phone support. I figure $100 for two years of unlimited phone support is worth it. Better than having a problem on Day 100.
Click to expand...


I thought Amex doesn't coverage damage after 90 days?
 
Blorzoga said:
Right, so you break your phone and take it to an Apple Store. Then I suppose you just tell them that you have an extended warranty through your credit card and they immediately bow down and kiss your feet and proceed to repair your phone free of charge. Wrong. They tell you, that's nice, but you'll have to pay for the repair and then chase down your credit card company and file a claim and wait for a reimbursement. And I don't think the credit card company will pay any more than you paid. So if you need an $800 phone replaced that you bought in contract, you're SOL.
Click to expand...

You don't inform the Apple store anything about Amex but simply say you want to repair an out of warranty iPhone. Yes, you do have to pay the OOW replacement cost upfront, but you can file the claim after the fact and Amex will reimburse you the price you paid. No, you're not SOL because the OOW replacement cost isn't anywhere close to the full retail price. E.g., you buy the 64GB iPhone 6 under contract for $299 plus tax and the OOW replacement price is also $299 plus tax.

deviant said:
I just read italian support page and it says that out of warranty repairs are very selective and apple may choose not to repair it for you, especially if it's damaged in more than 1 place or if it has been modified (i guess even a jailbreak will make them reject your request).
Click to expand...

That's actually no different from here in the U.S. It must be in one piece to be eligible for OOW replacement and it can't be jailbroken anyway even to be eligible for the standard warranty. If it's in working order (e.g., the sleep/wake button is stuck only on one side), you can restore it in iTunes to get rid of the jailbreak. If it's dead as in dead, they won't know about the jailbreak and replace it anyway.

doxielover said:
I thought Amex doesn't coverage damage after 90 days?
Click to expand...

Correct. Those of us who take the Amex route self-insure for accidental damage outside the 90-day period.
 
JayLenochiniMac said:
You don't inform the Apple store anything about Amex but simply say you want to repair an out of warranty iPhone. Yes, you do have to pay the OOW replacement cost upfront, but you can file the claim after the fact and Amex will reimburse you the price you paid. No, you're not SOL because the OOW replacement cost isn't anywhere close to the full retail price. E.g., you buy the 64GB iPhone 6 under contract for $299 plus tax and the OOW replacement price is also $299 plus tax.



That's actually no different from here in the U.S. It must be in one piece to be eligible for OOW replacement and it can't be jailbroken anyway even to be eligible for the standard warranty. If it's in working order (e.g., the sleep/wake button is stuck only on one side), you can restore it in iTunes to get rid of the jailbreak. If it's dead as in dead, they won't know about the jailbreak and replace it anyway.



Correct. Those of us who take the Amex route self-insure for accidental damage outside the 90-day period.
Click to expand...

What do you mean self insure?
 
doxielover said:
What do you mean self insure?
Click to expand...

Instead of paying $99 every two years for AC+, you put that in the bank. After a few years and no damage, you will have accumulated enough in the rare event of an accidental damage (which Amex won't cover) to pay for an OOW replacement. This of course depends largely on your personal/historical risk of damage. If you're the clumsy kind who drop your iPhone >3-5 times a year, AC+ is probably the way to go.
 
aneftp said:
Actually Amex (and other credit card companies give you a choice).

1. Get repair estimate. Send it in. Wait till it gets approved (usually less than 7 business days). Amex (visa etc) will reimburse you a check so you can use that check to pay for repair/replacement.

2. Wing it. Pay for repair/replacement yourself. Send in repair/replacement receipt. And Amex will credit you usually within 7 business days. (That's the option I choose always)

And for those who claim they can't do step one. It's a BS excuse. You can go buy yourself a cheap ATT go flip phone for $15 at best buy or Walmart etc. live with that flip phone for a week or so till your warranty gets approved (or denied).
Click to expand...

Both of these options are inconvenient. Applecare = convenience. AMEX = hassle. Some people are willing to pay a little extra for convenience.

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JayLenochiniMac said:
Correct. Those of us who take the Amex route self-insure for accidental damage outside the 90-day period.
Click to expand...

And by self-insure, you mean "have no insurance".
 
Blorzoga said:
Both of these options are inconvenient. Applecare = convenience. AMEX = hassle. Some people are willing to pay a little extra for convenience.
Click to expand...

A simple phone call to amex is hardly a hassle. They typically don't make you fill out paperwork or provide documentation. The rest involves swapping out the iPhone just as you'd do anyway with AC+. $99 just so you don't make that one phone call, seriously?
 
JayLenochiniMac said:
Instead of paying $99 every two years for AC+, you put that in the bank. After a few years and no damage, you will have accumulated enough in the rare event of an accidental damage (which Amex won't cover) to pay for an OOW replacement. This of course depends largely on your personal/historical risk of damage. If you're the clumsy kind who drop your iPhone >3-5 times a year, AC+ is probably the way to go.
Click to expand...

Self-insurance is nonsense. You either buy insurance and have peace of mind, or you don't and you have to cover your losses. Any insurance policy is a gamble. Obviously if you don't ever have a claim, you've wasted your money, but that's not the point. Do you also self-insure your health care?, your automobile?, your home?
 
Applecare is a great concept. The official apple case cost around €50 euro. Most people buy more than 1 cases generaly. I've paid €99 euro for Applecare so i don't need to worry about a damaged iPhone.
 
Blorzoga said:
Self-insurance is nonsense. You either buy insurance and have peace of mind, or you don't and you have to cover your losses. Any insurance policy is a gamble. Obviously if you don't ever have a claim, you've wasted your money, but that's not the point. Do you also self-insure your health care?, your automobile?, your home?
Click to expand...

Some people do self-insure for those things, assuming they're rich enough. It's not nonsense but a tangible concept. You put money in the bank to cover your own loss instead of possibly losing it forever if you don't ever make a claim.
 
Blorzoga said:
Self-insurance is nonsense. You either buy insurance and have peace of mind, or you don't and you have to cover your losses. Any insurance policy is a gamble. Obviously if you don't ever have a claim, you've wasted your money, but that's not the point. Do you also self-insure your health care?, your automobile?, your home?
Click to expand...

Your "peace of mind" theory is why so many people are over insured and why a lot of companies are making millions by selling extended warranties on vehicles, electronics and appliances. I have much more peace of mind by knowing I have saved more by using American Express and not buying AppleCare for all of my IOS devices.
 
With regards to your life, home, car., Your home & car are something that most people don't change every year or every other year. Further the house/car has a mortgage/loan on it and the loan underwriter requires you to carry insurance to protect their interest. Further, there are state/federal laws at least here in the USA that requires you to carry insurance and now for health too.

Your phone especially is something most people upgrade once every few years and some even quicker. The odds of them failing are quite small. The cumulative savings you get over the course of all the extended care warranties more than makes up for any possible savings you get with repairing a faulty phone.

You obviously believe applecare/extended care warranties are great for you, so it is your choice and good for you. Logically & statistically looking at it, it definitely is not.


Blorzoga said:
Self-insurance is nonsense. You either buy insurance and have peace of mind, or you don't and you have to cover your losses. Any insurance policy is a gamble. Obviously if you don't ever have a claim, you've wasted your money, but that's not the point. Do you also self-insure your health care?, your automobile?, your home?
Click to expand...
 
Yours is an opinion, which makes you feel warm & fuzzy, further it is your $ so knock yourself out. Mine is not an opinion but what statistics shows.

Here is some reading material for you.

http://www.investopedia.com/articles/pf/07/warranties.asp

Something from the link above.

What most consumers fail to realize is that although the price of an extended warranty often seems like a bargain to a consumer who is aware of the steep price of repairs, it has actually been carefully considered through actuarial analysis by the company that offers it. In other words, the company uses probability and statistical methods to calculate the likelihood that your new refrigerator or big-screen television, for example, will require repairs. This figure is weighed against how much those repairs would cost to arrive at the price that a company will charge consumers for a warranty on a particular item. This formula is not designed to work in your favor.




Blorzoga said:
You're certainly entitled to your opinion. As am I.
Click to expand...
 
b1scu1t said:
Yours is an opinion, which makes you feel warm & fuzzy, further it is your $ so knock yourself out. Mine is not an opinion but what statistics shows.

Here is some reading material for you.

http://www.investopedia.com/articles/pf/07/warranties.asp

Something from the link above.

What most consumers fail to realize is that although the price of an extended warranty often seems like a bargain to a consumer who is aware of the steep price of repairs, it has actually been carefully considered through actuarial analysis by the company that offers it. In other words, the company uses probability and statistical methods to calculate the likelihood that your new refrigerator or big-screen television, for example, will require repairs. This figure is weighed against how much those repairs would cost to arrive at the price that a company will charge consumers for a warranty on a particular item. This formula is not designed to work in your favor.
Click to expand...

No, yours is also an opinion. If you need to feel that you're correct in your opinion, then you have that right. FWIW I never buy extended warranties, with the exception of AC.
 
I'm off-contract but paying full price through AT&T Next. From what I understand, AmEx extended coverage would suck in my case. I did pay the initial taxes with AmEx and will continue paying my AT&T service and Next bill with it, but I think I will do AppleCare+ again for the two iPhone 6 in our house.

I used AC+ twice on my iPhone 4S, getting a replacement without extra costs because of hardware issues, not a broken screen. I also used it once on my headphones, because the little rubbery ring around them was pealing off (I know, why wouldn't I be using something better anyway). The other iPhone 4S in our house was also replaced once without extra costs because of the sleep/wake button failing. In all cases, Apple customer support was the best CS I've ever encountered. They were simply amazing in addressing my issues without any fuss, especially since I don't have an Apple Store nearby, and always shipped the replacement device overnight, which I also appreciate since I'd prefer getting the replacement before having to ship off my current.

The peace of mind and my previous experiences with it are convincing enough for me to go with AC+.
 
Blorzoga said:
Self-insurance is nonsense. You either buy insurance and have peace of mind, or you don't and you have to cover your losses. Any insurance policy is a gamble. Obviously if you don't ever have a claim, you've wasted your money, but that's not the point. Do you also self-insure your health care?, your automobile?, your home?
Click to expand...

Dude, you insure your health, home, and automobile because when those go wrong your livelihood/solvency is on the line. They are losing propositions statistically but you take the losing proposition because you can't afford to survive the worst case scenario. That is the whole point of insurance and if you don't understand that then you don't understand insurance.

Losing a phone is at worst a sting and an inconvenience in comparison, and so it's dumb to take a losing proposition for this unless you know you will break the phone enough to recoup the costs. You don't buy insurance on small items for 'piece of mind'. Insurance on small items /= 'Piece of mind' if you're not breaking them left and right, but Apple makes millions of dollars because people like you think it does. "Peace of mind" can easily be gotten for cheaper by self insuring for most people on Applecare+.
 
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