Squaretrade warranty makes no sense

[ashVID]

Maybe I'm just having post purchase cognitive dissonance but I'm regretting this warranty. I thought it included theft/loss but it doesn't. Luckily i got it for $80 but with Apple's replacement for $199 it makes no sense. If you analyze it, you might come the same conclusion.

Let's forget tax as it differs everywhere. The ST warranty is $100 for 2 years, you send in your phone and they repair or replace it (not really convenient) and you pay $50 deductible. So you pay a total of $150.

With Apple, you walk in with your broken phone, pay them $200 and walk out with a new (refurb) phone. So you are paying $100 insurance for a net of $50 coverage. That's insane.

What am I missing here? I also have iPad coverage which makes a lot more sense. ST is a solid company, it's just that this product makes no sense.



Ash

 

[Nahmeanz]

I bought SquareTrade insurance for 3 iPhone 4s and then I realized the same thing. But is there anywhere that specifically says Apple will replace a broken phone for $199? If there is, I'm canceling my SquareTrade insurance since they do pro-rate it.

 

[Bloake]

That's why I did the monthly payments instead...

 

[Bill Gates]

That's why I did the monthly payments instead...

If you had half a brain you'd realize that it doesn't matter HOW you're paying for it, you still end up paying the same thing and the coverage is still just as lousy. Anyone can cancel it for a pro-rata refund.

 

[ashVID]

Play nice Billy! I'm gonna cancel and go with coverage that will cover theft/loss for ~$119 a year. That's $120 for $600 insurance. Not great but better. I have not seen it in writing but my Apple store told me they were replacing the phones for $199 for any damage. When i inquired as to how long they would do it, i was told "at least as long as the warranty period"


Ash

 

[Loiterer]

If you had half a brain you'd realize that it doesn't matter HOW you're paying for it, you still end up paying the same thing and the coverage is still just as lousy. Anyone can cancel it for a pro-rata refund.

Not only that, he's paying MORE...the lump sum of $99 works out to $4.13 a month, but the monthly plan charges $5.99 per month.

 

[h00ligan]

Water damage. If that's covered under squaretrade, there's a big one for people who may be poolside heavily. The apple deal only covers damage to the screens doesn't it? Can anyone post a link the to '$200 apple situation'?

 

[the2j]

I just had to file a claim with square trade this week on my iPhone 3G that had water damage ( which I paid $68 for the warranty about two years ago). I paid the $50 deductible and then they wanted me to take my broken iPhone to the apple store and pay $199.99 for an out of warranty replacement then they would reimburse me the amount I paid. I called them and told them that I wasn't going to pay out another dime, so the sent me a UPS label for the phone and soon after a check for $399.99.

I paid $199.99 for the iPhone 3G, $68 for the warranty, and a $50 deductible (rough total of $310). Not only did I clear close to $100, I also didn't have to really worry about breaking my iPhone for the last 2years.

Totally worth it

 

[doboy]

Maybe I'm just having post purchase cognitive dissonance but I'm regretting this warranty. I thought it included theft/loss but it doesn't. Luckily i got it for $80 but with Apple's replacement for $199 it makes no sense. If you analyze it, you might come the same conclusion.

Let's forget tax as it differs everywhere. The ST warranty is $100 for 2 years, you send in your phone and they repair or replace it (not really convenient) and you pay $50 deductible. So you pay a total of $150.

With Apple, you walk in with your broken phone, pay them $200 and walk out with a new (refurb) phone. So you are paying $100 insurance for a net of $50 coverage. That's insane.

What am I missing here? I also have iPad coverage which makes a lot more sense. ST is a solid company, it's just that this product makes no sense.



Ash

It especially doesn't make sense since you can pay for broken iPhone at Apple AFTER the accident so you may never need to use it unlike ST that you pay regardless it happens or not. I know it's insurance, but if there is a way to get it fixed for similar fee after the incident, it's always better in my opinion.

 

[serialtoon]

I was about ready to purchase the insurance. Good thing I stumbled upon this thread.

 

[ApplEngineer]

I don't know where this $199 apple replacement is coming from? The standard warranty and apple care warranty covers your phone for factory or workmanship issues. It does not cover accidental damage, I could be wrong but I don't think I could drop my phone have the screen shatter and take it to apple to replace for 199. What am I going to say? "the screen just shattered on it's own sitting on my desk"

 

[sparrky]

Play nice Billy! I'm gonna cancel and go with coverage that will cover theft/loss for ~$119 a year. That's $120 for $600 insurance. Not great but better. I have not seen it in writing but my Apple store told me they were replacing the phones for $199 for any damage. When i inquired as to how long they would do it, i was told "at least as long as the warranty period"


Ash

Who are you going with for theft/loss coverage? Also, can anyone confirm that Apple will replace phones for $199 for any damage? If that's true, then the Squaretrade warranty is pretty pointless, IMO.

 

[doboy]

I just had to file a claim with square trade this week on my iPhone 3G that had water damage ( which I paid $68 for the warranty about two years ago). I paid the $50 deductible and then they wanted me to take my broken iPhone to the apple store and pay $199.99 for an out of warranty replacement then they would reimburse me the amount I paid. I called them and told them that I wasn't going to pay out another dime, so the sent me a UPS label for the phone and soon after a check for $399.99.

I paid $199.99 for the iPhone 3G, $68 for the warranty, and a $50 deductible (rough total of $310). Not only did I clear close to $100, I also didn't have to really worry about breaking my iPhone for the last 2years.

Totally worth it

It was worth it for you because you broke your phone and you made them pay for it, which they were obviously trying to avoid.. If you never broke your phone then you wouldn't have seen a penny of it. You can always "accidentally" break your phone, but I would rather be honest and sell the phone instead to recover the cost of the phone.

Also I believe Apple does cover water damage. If I remember correctly, it covers out of warranty exchanges so water damage will immediately cause out of warranty status as well as cracked screen. I heard your phone has to be in one piece though.

 

[r3voLoL]

http://gizmodo.com/5571866/your-iphone-4-warranty-and-insurance-options

Answers all your warranty questions.

 

[h00ligan]

I don't know where this $199 apple replacement is coming from? The standard warranty and apple care warranty covers your phone for factory or workmanship issues. It does not cover accidental damage, I could be wrong but I don't think I could drop my phone have the screen shatter and take it to apple to replace for 199. What am I going to say? "the screen just shattered on it's own sitting on my desk"

I think that's where the confusion is coming form, SCREEN replacement from apple is $200. AFAIK that is ALL it covers, if you drop your phone in a pool, they aren't giving you another for $200.

 

[Bloake]

Not only that, he's paying MORE...the lump sum of $99 works out to $4.13 a month, but the monthly plan charges $5.99 per month.

Well, I actually expect to upgrade next year again with the new iPhone (presumptively) so it doesn't make sense to purchase insurance for 2 years full.

 

[Bloake]

If you had half a brain you'd realize that it doesn't matter HOW you're paying for it, you still end up paying the same thing and the coverage is still just as lousy. Anyone can cancel it for a pro-rata refund.

Actually, if you claim the covered amount $599 early on (like for many clumsy people like me) you do save some money....

 

[doboy]

I think that's where the confusion is coming form, SCREEN replacement from apple is $200. AFAIK that is ALL it covers, if you drop your phone in a pool, they aren't giving you another for $200.

I'm almost certain that they will cover watt damage for $199. I remember asking them when I purchased my 3GS.

 

[JayLenochiniMac]

Members here have replaced their water-damaged iPhone for $199.

Better to self-insure with $199 in the bank. You get to keep the $199 (plus any interest earned on it) if nothing happens to it.

 

[h00ligan]

I'm almost certain that they will cover watt damage for $199. I remember asking them when I purchased my 3GS.

You're right.

Ok so figure this way. Squaretrade gets you a new phone, not a refurb - saves you about $50 if you buy it at full price (the contract @$100)

If you go the apple route, you get a refurbed phone with 90 day warranty.

Still I would think ST would need to drop the price to $70 max to really tempt people in.

 

[hchavarria]

If you read apples support website you'd realize that they will replace any iPhone for $199 if the damage is not within their warranty terms including water damage. If you want to read more about it here is the link. Link

 

[maryannee]

Members here have replaced their water-damaged iPhone for $199.

Better to self-insure with $199 in the bank. You get to keep the $199 (plus any interest earned on it) if nothing happens to it.

I still have the ST on my 3G (which has been sitting in a drawer for over a year) and the 3GS. I am going to take your advice and self-insure on my next one, iphone 4.

 

[h00ligan]

If you read apples support website you'd realize that they will replace any iPhone for $199 if the damage is not within their warranty terms including water damage. If you want to read more about it here is the link. Link

Dude, lose the attitude, I posted directly above you I was wrong. Thanks for the link.

 

[coelacanth]

If theft isn't your main concern, Apple's replacement program is the way to go IMHO.

Against theft, you'll need SafeWare, Worth Ave. Group or Mobile Protect.

 

[babby]

Save your money for the rainy day

Members here have replaced their water-damaged iPhone for $199.

Better to self-insure with $199 in the bank. You get to keep the $199 (plus any interest earned on it) if nothing happens to it.

I do this with most things I am offered an extended warranty. I take the money that I would have paid on the warranty and put it in my savings account. If something does break, I am still better off than if I would purchase all these warranties. Places like Best Buy don't make as much money selling the big item things, but selling accessories and warranties.