AT&T to Begin Offering iPhone Insurance on June 6th? $13.99 Per Month Plus Deductible

[wjlafrance]

I'm in college right now working on a degree as programmer / analyst. Therefore I can say:

This analyst predicts that the number of iPhones on eBay and iPhone's reported to AT&T as lost will increase at a ratio of 1:1.

And the best thing is it doesn't matter if I'm wrong!

 

[mac*jedi*g]

Well thanks for working out a great deal....

NOT! Who in the hell would want to pay another $336 for a device (we paid for $199), throughout the life time of the contract, in order to insure a device against "what if"? <please> . And you think you are helping the iPhone users??

It would be more prudent for AT&T to offer, instead, a directory of local discounted spare part dealers, and repair shops inside its retail stores.

 

[RogueLdr]

I know I could be like most and state how effing messed up the pricing is on this insurance, but maybe the most important information is being passed over here. Why does this document have a ceiling of 32GB iPhone??? Could be because this is currently the highest available model, but could it be that this is also going to STILL be the highest GB available??? Just my 2 cents.

I agree.

The documentation for the plan says it's only available on new purchases, starts the day before new iPhones come out, but only references the current line of iPhones.

Maybe at&t just loves revising documentation? It says they'll revise it as new models release but couldn't they just wait a day and print the doc once?

 

[cvaldes]

Buy a few shares of AAPL when you get the iPhone (or iPad) and by the time you lose your poor iPad / iPhone you can cash in your stock in and buy two

I agree, but most people at this forum despise hearing that you can get everyone else to pay for your Apple equipment purchases.

 

[SandynJosh]

EPIC FAIL for AT&T!!! The guy that put this together needs to get kicked straight in the nuts! People are not that dumb to shell out an extra 13.99 a month for insurance and then pay a deducible on top of it. Over the course of a 2 year contract you would have thrown away 335.00 to AT&T IF you did not use the Insurance.

Ahhh, but people ARE that dumb. People misread and mis-understand all the time. Let's take you for example. You misread, so you think this is insurance is by AT&T and not being offered by some third-party insurance company. You'd likely sign up thinking that it's a one-time charge.

 

[cpucrash0]

Can't you just put the money in a bank and instead of paying this insurance? you would be getting interest and if you put money each month into a bank account instead of this you would have enough to cover your iphone if it breaks or gets stolen unless you loose your iphone or break it right away,But putting money in the bank each month is a better idea then this.

 

[Mr. Gates]

Can't you just put the money in a bank and instead of paying this insurance? you would be getting interest and if you put money each month into a bank account instead of this you would have enough to cover your iphone if it breaks or gets stolen unless you loose your iphone or break it right away,But putting money in the bank each month is a better idea then this.

Well, your numbers are a bit off, but I appreciate the thought process. Just look at the approval ratings ! 14 like and over 300 hate !

 

[cvaldes]

Can't you just put the money in a bank and instead of paying this insurance? you would be getting interest and if you put money each month into a bank account instead of this you would have enough to cover your iphone if it breaks or gets stolen unless you loose your iphone or break it right away,But putting money in the bank each month is a better idea then this.

Sticking your money in a bank would be pointless. However, buying into a good ETF like SPY, QQQQ, or IWM might make sense, since in the long run, you'll get a return above inflation/COLA.

Another option would be to simply buy shares of AAPL and let your fellow Apple customers pay for your "insurance policy."

So don't buy this insurance. Stick it somewhere else where you'll have a better ROI. The people who truly benefit from this insurance are AT&T shareholders.

 

[realeric]

Ahhh, but people ARE that dumb. People misread and mis-understand all the time.

+1. You get what you pay for is not true.

 

[SandynJosh]

buy new 4G.. report lost 2 weeks later.. purchase new iPhone.. put new iPhone on ebay for 3x what I paid.. cancel insurance!! continue using old phone..sounds like a plan!

Get caught for insurance fraud, get a new room mate...ohh, he kinda likes likes you. Gosh, it sucks to be popular in the big house.

 

[richpjr]

Wow. On Verizon I pay $5.99 a month for insurance with a $50 deductible for all the phones in my family. My wife dropped her phone in the ocean, I left my BlackBerry on top of my car and started driving, my daughter dropped hers in the toilet and also had one stolen. The insurance claim was simple each time and I had a replacement phone within 24 hours with no hassle. But man, at those prices with that deductible, I might have to think long and hard about chancing it with no coverage.

 

[cocky jeremy]

Get caught for insurance fraud, get a new room mate...ohh, he kinda likes likes you. Gosh, it sucks to be popular in the big house.

Have someone else sell it for you. Report it lost, not stolen. They can't prove it wasn't lost. Easy enough.

 

[ucfgrad93]

No way would I pay $14/month plus a deductible. That is just crazy.

 

[asxless]

So. Does this insurance cover leaving your iPhone on a bar stool ?

asxless

 

[SAD*FACED*CLOWN]

I see the angle...the new iPhones must be very delicate...two glass panels

 

[RebelScum]

i will DEFINITELY be signing up for this. i think i'm on my 5th iphone - upgrading, losing, dropping - and it sucked having to pay $5-700 each time for a new one. so ~$168 a year is pretty awesome.

If you've got upwards of $3500 to spend on cell phones...actually I don't even know how to finish that sentence.

 

[mikejfrd]

Geeez some of you people would bitch if it were free!!

Do you think Verizon would do anything different if they get the iPhone???? Look at how many people take their phones to Apple to get them replaced for the smallest things! If it were any cheaper they would lose money with the amount of claims they would get. People abuse insurance plans.

...And yes believe it or not it's ok for a corporation to make money, that’s the point!! Some of you people are acting like your privileged and want something for nothing.

 

[3282868]

I was pushed into a pool with my 32gb 3GS. (nobody has ever seen me so mad I could even say anything) so I was ticked because outright the phone is 700 I think. But apple started a replacement program recently and I was able to get my water logged phone replace for 200 (the pusher paid for it). A perfectly good refurb with a year warranty. Can't beat that.

The people at the apple store said it didn't matter what phone it was. It was just a 200 replacment charge.

Exactly. UNLESS Apple changes their current policy with the new iPhone, you can get a refurbished iPhone for $199 at the genius bar (even iPhone's with water damage).

I'm suspect with this new plan as it doesn't make sense given Apple's current policy. This leads me to suspect that Apple may change their replacement policy, no more $199 refurbished iPhone's.

Any thoughts?

EDIT: Except for stolen/lost iPhones, Apple assumes insurance fraud and will charge full price. I had my iPhone stolen in LA, and Apple wanted to charge me full price for a replacement. I phoned AT&T, and noticing my minutes are hardly used compared to my NYC usage, they offered to allow a new iPhone for $399 plus $30 off my monthly bill (I threatened to sign with Verizon as breaking my contract with AT&T and getting a phone with better service was the option I was seeking). However, $30 off my monthly bill plus $200 off a new iPhone seemed reasonable at the time. My point, Apple will never strike deals, yet AT&T will almost always deal with their customers well as they want your business and are aware that certain area's have horrendous coverage. Screw the service plan, if you have your iPhone the genius bar will replace it for $199. If you don't have it, phone AT&T as they generally work with their customers.

 

[PatrickCocoa]

Do It Yourself

To everyone complaining about the cost of this insurance compared to the benefits:

Please start your own insurance company and determine what you'd charge for this coverage. Report back here. If your premium is less than $13.99 a month, then you've discovered a gold mine - you can sell your insurance, which people will buy because it's cheaper than the alternative, and you're making money.

 

[b9bot]

$99-$199 deductible? Are they nuts

Don't waste your money. You can go to any Apple Store with a Genius appointment and get your damaged phone replaced for $199.00 without paying any monthly fee!

AT&T is trying to rip you off with that high deductible.
The $14 a month fee is just icing on there cake.

 

[MarkMoseley1]

Ahhh, but people ARE that dumb. People misread and mis-understand all the time. Let's take you for example. You misread, so you think this is insurance is by AT&T and not being offered by some third-party insurance company. You'd likely sign up thinking that it's a one-time charge.

No I didn't misread. AT&T is the one that actually offers the insurance even though its third party. You still pay the $13.99 to AT&T for the service. I will tell you that I would not sign-up for this because I know its a rip-off! I did the math on it in my previous post. The extra couple of hundred dollars that I would save by not taking the extra charge per month in its self is a smart move. This is no one time charge. The extra "deductible" which is between $99 to $199 is the extra hit you take if you actually have to use this Insurance.

If you read the article it says plain as day AT&T. And if you read the picture's it says "AT&T teamed up with Asurion" so AT&T most likely gets a cut of the $13.99 some where in the process. And don't forget the App writers have to get paid too for creating the App.

 

[b9bot]

To everyone complaining about the cost of this insurance compared to the benefits:

Please start your own insurance company and determine what you'd charge for this coverage. Report back here. If your premium is less than $13.99 a month, then you've discovered a gold mine - you can sell your insurance, which people will buy because it's cheaper than the alternative, and you're making money.

Except you are forgetting the deductible which is $99 to $199. That's the cost of a replacement iPhone at any Genius Bar WITHOUT a $14 a month charge!
AT&T is trying to take people for a ride.

 

[ucfgrad93]

And yes believe it or not it's ok for a corporation to make money, that’s the point!!

Yes it is ok for corporations to make money. And its ok for us to complain and not buy the service.

 

[macswitcha2]

AT&T, please justify that ridiculous service fee?

 

[shoorty0690]

Unless the iPhone is lost or stolen, a replacement device for damaged one at the Apple store is $199. Makes no sense to pay $14 a month + the $99-$199 deductible when you can get it replaced without the hassle at the Genius bar...

Either I'm not understanding the purpose of this, reading this wrong, or just flat out not understanding the service, but fail on AT&T for tricking their customers.