iPhone Insurance Fraud

Stella

macrumors G3
Original poster
Apr 21, 2003
8,273
4,636
Canada
Excerpt:

"iPhone owners are deliberately destroying their mobiles and concocting fraudulent insurance claims in order to upgrade to the latest model, says one insurer.
Supercover Insurance has said that claims for Apple's iconic phone typically jump by 50% during the month in which a newer version is launched."


http://news.sky.com/skynews/Home/Business/iPhone-Owners-Commit-Fraud-For-Newest-Model/Article/201002215548757?lpos=Business_First_Technology_Article_Teaser_Region__2&lid=ARTICLE_15548757_iPhone_Owners_Commit_Fraud_For_Newest_Model
 

GoCubsGo

macrumors Nehalem
Feb 19, 2005
35,743
141
Not shocked and what sucks worse is that soon the iPhone will be 100% uninsurable thanks to these tools.
 

Ab10la

macrumors newbie
Feb 12, 2010
26
0
It is fraud. However I have been defrauded by the insurance companies in the past and have no love for them. Carry on fellas.
 

Resist

macrumors 68030
Jan 15, 2008
2,897
33
One of two things with happen if this trend continues, rates will increase or coverage for cell phones will cease.
 

sravana

macrumors regular
Sep 14, 2008
142
0
Texas
One of two things with happen if this trend continues, rates will increase or coverage for cell phones will cease.
Or they will cease to cover phones that mysteriously "die" within X months of the new one coming out.

Oh, and Ab10la? You are a criminal.
 

nehunte

macrumors 6502
Apr 30, 2009
331
0
Sorry guys, this is part of the risk of being an insurance company and insuring things. You could put measures into place to try to prevent this somewhat. But in the end, you're insuring products and sometimes you have to deal with people who are "less than ethical" when it comes to their products that are insured.
 

kernkraft

macrumors 68020
Jun 25, 2009
2,455
1
These people, who commit the fraud (or criminal damage?) might tell me which insurance company they use. I never found any phone insurance worth their cost. And who would risk their home insurance premium go up?
 

Rodimus Prime

macrumors G4
Oct 9, 2006
10,132
4
Sorry guys, this is part of the risk of being an insurance company and insuring things. You could put measures into place to try to prevent this somewhat. But in the end, you're insuring products and sometimes you have to deal with people who are "less than ethical" when it comes to their products that are insured.
They cover that risk by raising the price for the insurance for everyone. I also see them changing the policy for the iPhone to be instead of giving you money they replace it with a refurbished one of the same model. That will kill people incentive to "break/Loss" their iPhone because they will not be able to get an upgrade.
 

Ish

macrumors 68020
Nov 30, 2004
2,055
463
UK
When you have home or vehicle insurance the rate goes up if you keep making claims as you're perceived to be a greater risk. The same should apply to phone insurance.
 

Hudzilla

macrumors 6502a
Nov 12, 2007
646
14
England
Sorry guys, this is part of the risk of being an insurance company and insuring things. You could put measures into place to try to prevent this somewhat. But in the end, you're insuring products and sometimes you have to deal with people who are "less than ethical" when it comes to their products that are insured.
+1

Also, did anyone notice the picture below the piece is labelled 'iPhone', but is clearly from the iPad keynote?
 

pauliphone

macrumors regular
Nov 27, 2008
240
0
London, UK
My iPhone actually did get stolen about 2 months after the 3GS came out. o2 who my insurance is with replaced with the 3G 16Gb which I had before, obviously using surplus stock.
 

mgamber

macrumors 6502a
Jun 12, 2008
816
0
1966
They cover that risk by raising the price for the insurance for everyone. I also see them changing the policy for the iPhone to be instead of giving you money they replace it with a refurbished one of the same model. That will kill people incentive to "break/Loss" their iPhone because they will not be able to get an upgrade.
I think this is basically what SquareTrade has done. When my phone fell in the hot tub a few weeks ago, I filed a claim with ST and they told me to take it to the Apple store, pay the $200 for an OOW replacement, send them the receipt and they'd pay that minus the deductable. The phone was a 3GS but had it been an old 3G or something, I wasn't going to be walking out of the store with a brand spanking new 3GS. Pretty ingenious, really. I'm happy because I had a real claim and got a replacement and those trying to commit fraud get what they had to start with.

I wonder if this is why the iPhone is the ONLY phone AT&T won't insure at all? Well, that and the fact that if you try using it on a humid day it gets water damage.
 

nehunte

macrumors 6502
Apr 30, 2009
331
0
I think this is basically what SquareTrade has done. When my phone fell in the hot tub a few weeks ago, I filed a claim with ST and they told me to take it to the Apple store, pay the $200 for an OOW replacement, send them the receipt and they'd pay that minus the deductable. The phone was a 3GS but had it been an old 3G or something, I wasn't going to be walking out of the store with a brand spanking new 3GS. Pretty ingenious, really. I'm happy because I had a real claim and got a replacement and those trying to commit fraud get what they had to start with.
Seems like a fairly solid system. How long before you got your refund check back?
 

instaxgirl

macrumors 65816
Mar 11, 2009
1,438
1
Edinburgh, UK
"The issue appears to be that most iPhone owners can only go for so long realising that they're a generation behind the latest must-have spec before they resort to extreme measures."

. . .

some returns have shown signs of being damaged by at least six hammer blows.
I can't help smiling at the image of someone staring at Apple's home page and their eye beginning to twitch, then their gaze alighting upon a hammer . . .
 

Wicked1

macrumors 68040
Apr 13, 2009
3,278
13
New Jersey
However it may be true, and Insurance Company Claiming Fraud how Preposterous.

Boy if I had a nickel for everytime I was defrauded by an Insurance company I would be Rich.

At 17 I had to pay for Car Rental insurance on my policy roughly $200 and so when someone hit my car, I asked for a rental, but their little fine print stated you must be 25 in order to rent a car, so I asked them to cancel it and they told me it was mandatory on my policy...so my mother rented the car and I had to use my mothers, but what crooks
 

jemeinc

macrumors 6502a
Feb 14, 2004
771
0
South Jersey
Oh, and Ab10la? You are a criminal.
HUH? Why because he/she said that in their opinion insurance companies brought this on themselves and he/she didn't feel bad for them? What's criminal about that? I'll tell you what- NOT A DARN THING!!! Ab10la didn't say they were gonna try it- just that they couldn't find it in themselves to feel sorry for the insurance companies... Sorry, but I'm not feeling bad for the insurance companies either- nor am I a criminal for it..
 

Mischka07

macrumors regular
Sep 28, 2009
166
0
However it may be true, and Insurance Company Claiming Fraud how Preposterous.

Boy if I had a nickel for everytime I was defrauded by an Insurance company I would be Rich.

At 17 I had to pay for Car Rental insurance on my policy roughly $200 and so when someone hit my car, I asked for a rental, but their little fine print stated you must be 25 in order to rent a car, so I asked them to cancel it and they told me it was mandatory on my policy...so my mother rented the car and I had to use my mothers, but what crooks
Don't know where you lived at the time, but I've never seen a policy with mandatory rental coverage; especially one that costs $200. Not calling you a liar, but there're a lot of factors that come into play.

As a rule, it's not in the best interest for insurance companies to lie to you, they have much more to lose than you. On the other hand, it's usually because policyholders are not educated on the coverages they have.