Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

AppleCare+ Is A Giant Ripoff!

All Insurance period is pretty much a scam.

Yet people still buy car, home auto, heath, life.

It buys piece of mind, its purpose isn't to help you come out ahead financially.


I've paid in probably enough money in car insurance in my life to buy a nice european sports car hell probably a pair of them. And the only time I ever got anything about it, is when 1 car I had broke down and they paid to have it towed.

In hindsight could of paid 100 no insurance tickets and still come out ahead.

But I really don't feel like risking driving home, being distracted and totaling out some guys Mercedes and getting sued for it either.


Same can be said for any insurance, it's not like they are a trillion dollar industry in the US alone* because they are philantropists

I stand a much higher chance of using my $79 for 2 year Apple care than I will the 10's of thousands of dollars spend for my other insurance in the same time period.


* http://www.iii.org/fact-statistic/industry-overview
 
Jazwire said:
All Insurance period is pretty much a scam.

Yet people still buy car, home auto, heath, life.

It buys piece of mind, its purpose isn't to help you come out ahead financially.


I've paid in probably enough money in car insurance in my life to buy a nice european sports car hell probably a pair of them. And the only time I ever got anything about it, is when 1 car I had broke down and they paid to have it towed.

In hindsight could of paid 100 no insurance tickets and still come out ahead.

But I really don't feel like risking driving home, being distracted and totaling out some guys Mercedes and getting sued for it either.


Same can be said for any insurance, it's not like they are a trillion dollar industry in the US alone* because they are philantropists

I stand a much higher chance of using my $79 for 2 year Apple care than I will the 10's of thousands of dollars spend for my other insurance in the same time period.


* http://www.iii.org/fact-statistic/industry-overview
Click to expand...
Big insurance items that you need are not scams because they protect you from being wiped out financially. Like health insurance. Sure, most of the time you don't need it. But what if you got injured or had a medical issue. The medical bill that you would end up having to pay would wipe you out. Same with car insurance. You hit somebody else's car that cost tens of thousands, you'll have to pay that out of pocket. And depending on your finance, you might be in big trouble. Insurance for small items like electronics are a waste of money though.
 
rotlex said:
Love the AC discussions. Bottom line is all extended warranties are designed to do one thing. Make the company a TON of money. They are in general the largest profit item any company sells period. They are not a good deal for 99% of consumers. Ever sell electronics, cars etc.? As a former salesman, I would make more commission on a $50 warranty than the $1000 item I was selling.

If figure it this way. With the money I have saved over the decades not buying extended warranties, including Apple Care, I could pretty much replace every electronic device in my home.

Not saying they cannot occasionally "work out" to be worth it, but overall, just a huge rip off.
Click to expand...

I have also used a combination of American Express and self insurance. I have only had two iPhones fail after the first year and American Express covered them. I figure with all the IOS devices my family has purchased over the years and not purchasing AppleCare, I am ahead well over $1,000 so if I were to have an issue with a device, I can pay for it with the money saved.
 
Another point with care. You can transfer to new owner if you sell. Or like I did, get refunded unused portion if you sell phone. I got $45 and change back from my original $99 after selling phone in 13th month.
 
mastercheif91 said:
I'll add, I always buys my phones with an American Express card. They have a policy on all their cards where they automatically extended the warranty of any electronic item by a year. So that's your two years of coverage right there.

So besides for water damage, what else am I really missing out on?
Click to expand...

Amex is based on the price you paid for the phone. If you paid $199 on contract, you get $199 from Amex. I am sure it may have already been mentioned though.

Also, pretty much all credit cards for people with excellent credit offer this: discover it, chase freedom, citi double cash, etc.
 
some people i know have used applecare multiple times in the same year and it does give them the piece of mind
 
AppleCare+ Is A Giant Ripoff!

medlee said:
some people i know have used applecare multiple times in the same year and it does give them the piece of mind
Click to expand...


If you have a history of high rates of damage or in a risky environment then that's the only time it really makes sense. What I and others are pointing out is that a ton of people don't do this analysis and most of the purchases are essentially free money for Apple. Anecdotes abound about "i came out ahead this one time with Applecare+" but as soon as you ask about their previous 3 or 4 phones it's clear they're not ahead and not likely to be so in the future. It's like saying a casino is worth it because you came ahead in the slots one year.

"Peace of mind" can easily be gotten for cheaper by self insuring for most people on Applecare+. The vast majority break 0 or 1 phone's per cycle, and most are usually just screen breaks which don't make ac+ worth it even after two.
 
I had to been going back and forth over whether or not to purchase AppleCare or to stick with the carrier insurance or neither.

I called my renters insurance company and low and behold l they cover not only my iPhone but all the household electronics I own for an additional $21 a year with only a $50 deductible.

So my iPhone and my wife's phone are now covered for loss, stolen and damage at a really good rate instead of $96 and $120 a year and a $175 deductible from our phone carrier.

I recommend check with your renters or homeowners insurance carriers, good people.
 
truth1ness said:
If you have a history of high rates of damage or in a risky environment then that's the only time it really makes sense. What I and others are pointing out is that a ton of people don't do this analysis and most of the purchases are essentially free money for Apple. Anecdotes abound about "i came out ahead this one time with Applecare+" but as soon as you ask about their previous 3 or 4 phones it's clear they're not ahead and not likely to be so in the future. It's like saying a casino is worth it because you came ahead in the slots one year.

"Peace of mind" can easily be gotten for cheaper by self insuring for most people on Applecare+. The vast majority break 0 or 1 phone's per cycle, and most are usually just screen breaks which don't make ac+ worth it even after two.
Click to expand...

Yep, I have $641 in the bank from skipping AC+ and self-insuring, enough to cover a couple of OOW replacements (and this is an extremely conservative estimate, assuming I get $49 in refund when I sell after one year). Amex already made me whole (plus some) on one iPhone that needed warranty work/OOW replacement in the second year.
 
itjw said:
So what's the game plan if it does?

You're already out $40 for the case, so another $109 for a screen then? Assuming it's only the screen. And a new case? Another $40?

I've seen a lot of drops in cases that result in damage to the phone. It's just reality unfortunately. Even OtterBoxes and LifeProofs fail.

Naked and AC+. I don't drop my phone 4-5 times, but if I did I would consider a $40 case too (fair enough), but still backed up with AC+.
Click to expand...

That's the point of the case, to protect the screen and back.

I've tested the limits of my case and nothing can happen to my phone from basic drops.

The case is a speck candyshell with a faceplate. I suppose if I didn't have the faceplate then there's a slight chance the screen could break.
 
deadgame01 said:
I had to been going back and forth over whether or not to purchase AppleCare or to stick with the carrier insurance or neither.

I called my renters insurance company and low and behold l they cover not only my iPhone but all the household electronics I own for an additional $21 a year with only a $50 deductible.

So my iPhone and my wife's phone are now covered for loss, stolen and damage at a really good rate instead of $96 and $120 a year and a $175 deductible from our phone carrier.

I recommend check with your renters or homeowners insurance carriers, good people.
Click to expand...

Will the insurance company jack your insurance rates if you make the claim for a lost/stolen phone, though? Sometimes they like to drop you entirely if you make a claim. Like, for example, a family member had one of their buildings burn down, but someone else was at fault and their insurance covered it, but they still got dropped on their insurance because they were considered, “high risk”. – Even though their insurance never paid a time.

So are they going to be like that with an iPhone? You lose your iPhone once, now you’re “high risk”, or flag you somehow as “high risk”, so now if you try changing your insurance they charge a little bit more next time.
 
Hard for me to justify the cost Applecare when a 15 dollar case will prevent most of the damage caused by a fall. People that think it's a good deal must be really reckless with their phones.
 
If you ask me applecare+ is a BARGAIN! run your phone over with a car, go to Apple Store and exit the store with a new phone for 180 bucks lol. A phone that's 1000$ and even more
 
I got applecare for my macbook for $349. Since then, I got $538.11 in repairs. That's a net savings of $189.11

And I don't know where people are getting these numbers from. I got a cracked screen on my 4s a couple years ago and they replaced the whole phone for just $49. Have they increased prices since then?
 
dannyyankou said:
I got applecare for my macbook for $349. Since then, I got $538.11 in repairs. That's a net savings of $189.11

And I don't know where people are getting these numbers from. I got a cracked screen on my 4s a couple years ago and they replaced the whole phone for just $49. Have they increased prices since then?
Click to expand...

OOW repairs have increased in price significantly. https://www.apple.com/support/iphone/repair/
 
aneftp said:
Amex covers first 90 days accidental damage (water damage included) AND THEFT.

I wanted to point out that Amex will only reimburse the lesser of what you paid for the phone or the actual cost of repair or replacement.

So if u buy subsidized price at $199 and lose iphone within 90 days. U only get $199 back. Also it's a very gray area with these Att next Verizon edge programs. Since you technically aren't using Amex and put zero down. Amex won't cover you at all.
Click to expand...

I always pay full price no contract.
 
mastercheif91 said:
Fair enough. I've just gotten so used to the Amex coverage I almost forgot about the lapse in coverage after the year. It just struck me that when most people explain their decision to purchase AC+, it's for the broken screen coverage.

Just did a little research, it looks like certain cards from the three other major card companies also offer free warranty extension. It baffles me why anyone wouldn't apply for a no annual fee Amex card and just use it for electronic purchases. Even if you don't qualify for a no fee card, a card with a small fee would still be an absolute steal if you buy multiple expensive gadgets a year!
Click to expand...

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.

----------
doxielover said:
I always pay full price no contract.
Click to expand...

Brilliant!

----------
EDH667 said:
I have also used a combination of American Express and self insurance. I have only had two iPhones fail after the first year and American Express covered them. I figure with all the IOS devices my family has purchased over the years and not purchasing AppleCare, I am ahead well over $1,000 so if I were to have an issue with a device, I can pay for it with the money saved.
Click to expand...

I hope you don't have the same philosophy when it comes to medical insurance for your family.
 
my first 27" iMac didn't have applecare. I thought about buying it in the eleventh month and decided not to buy. The thirteenth month of owning the iMac I had to replace the display, which was $800+ a few months later I had to replace the hard drive @ $250+ so, not spend the $169 for applecare cost me much more.

I bought my 15" rMBP and then bought the applecare in the last month of eligibility and what a wonderful decision. A co-worker pressed his elbow down on my on the closed lid and made a huge pressure mark on the display. Apple replaced it for free since I have apple care and the coworker is in the process of correcting his mistake!

so, piece of mine is good at times.
 
b1scu1t said:
As per the page below., out of warranty cost for a 6+ is $329 & not a $1000.
The folks at Apple are quite good at making $ and Applecare definitely makes $ for them.


https://www.apple.com/support/iphone/repair/other/
Click to expand...

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?

----------

Like one smart man said : any insurance is a ripoff. Until something happens.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back