Squaretrade warranty makes no sense

[ashVID]

I'm going with Safeware US only for $99 a year, $50 deductible, includes loss or theft. Term is a non-issue as I generally upgrade every year.

Called the Apple store just now and they said that it is $199 for any damage not covered under warranty repair. They said "if you drop it in a lake you'll need to swim down and get the phone but we will replace it for $199."

The only thing he balked at was if the damage was "obviously intentional" this was when i inquired about the blended iPhone




Ash

 

[doboy]

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.

I get your point, but all I'm saying is that if the "accident" never occurs then you are out of the price of ST warranty. Also I don't mind the refurbs because Apple replaces the external components like screen and case with new ones before exchanging it as refurb. Also warranty for refurb is 90 days or remainder of your original warranty, whichever is longer.

 

[Nrwrit3r]

Yea this is why I decided not to get it...if you don't end up needing the warranty you'll end up wasting 100.

 

[ashVID]

Unless I missed something ST only gives you a new phone if they can't repair it.


Ash

 

[hchavarria]

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

Sorry although no attitude intended, but yeah I think this is the way to go unless theft is an issue. I haven't lost any of my iPhone's since the first iPhone as of yet but historically my problem had been drops or my son getting his hands on it and dropping it. I typically like my phones without any covers or just with an Invisible Shield but after breaking the glass on my 3G I kept my 3GS in an otterbox the whole time.

 

[JayLenochiniMac]

The only thing he balked at was if the damage was "obviously intentional" this was when i inquired about the blended iPhone

LOL, but yeah, you'd still have to hand them a shiny brick or paperweight, which would not be possible in the case of theft or blender, if you want a replacement for $199.

 

[Espo]

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.

You are incorrect about the 90 day warranty. Your warranty follows from the day you purchased the original phone.

 

[RetiredInFl]

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

That's what I've been saying here for 3 years every time Square Trade comes up. On top of what you say it's only good for one "replacement." If you smash your phone and get a new one you have to pay the $100 again.

 

[RetiredInFl]

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 got a 3GS for $199.95 when it fell in the, uhhh, toil ... er, pool. They sure do. As long as you are under the initial 1yr or Applecare for year 2.

 

[jkozlow3]

I got a 3GS for $199.95 when it fell in the, uhhh, toil ... er, pool. They sure do. As long as you are under the initial 1yr or Applecare for year 2.

I don't think you have to be under the original 1 year (or Applecare 2 year) at all. It's called "out of warranty" replacement and is $199. I recently had my 3G swapped out long after the 1 year warranty expired for $199 with no hassle at all. In fact, as the genius was ringing it up, he said "I'll give you $100 off the $199 which is the most I'm allowed to give". I didn't even ask for a discount which was nice.

 

[JayLenochiniMac]

I got a 3GS for $199.95 when it fell in the, uhhh, toil ... er, pool. They sure do. As long as you are under the initial 1yr or Applecare for year 2.

You don't even need to be under warranty.

Best course of action: Purchase using an Amex card (or equivalent) that covers accidental damage and theft for 90 days and double the warranty, essentially mirroring Applecare for the 2nd year, and self-insure with $199 in the bank.

 

[atomicbatteries]

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

You do know your paying a very big premium on doing it that way instead of paying the whole thing at once. They are charging interest or service charges on the balance over the period of time you have the policy.

 

[marksman]

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"

You would be wrong. They will give you a refurb phone if you break the screen, get water damage any of that kind of stuff.

I agree with the gist of the thread, the squaretrade warranty does not make sense in the face that Apple will essentially REPLACE any phone for $199.

 

[marksman]

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.

Apple does very little repair on devices.

99% of all their repairs involve replacing a phone with a refurbished one.

So $199 is their price to do this if you are out of warranty, in effect.

Obviously if your phone was smashed to bits, they might not go for it, but if it has suffered normal use damage like cracks, screen damage, even water damage, they will replace it. They don't fix your phone, they just give you refurbished one.

 

[amazingdm]

As I understand it, refurbished phones have new cases on them so they're going to be scratch free.. and they will be completely tested right?

So this is true.. instead of going with squaretrade I just have to keep $199 handy if something bad happens to my iPhone?

 

[ref26]

As I understand it, refurbished phones have new cases on them so they're going to be scratch free.. and they will be completely tested right?

So this is true.. instead of going with squaretrade I just have to keep $199 handy if something bad happens to my iPhone?

Yes, and they are even more thoroughly tested than new units

 

[ActionJax]

See this link for Apple's explanation of out-of-warranty service: http://www.apple.com/support/iphone/service/faq/#warranty7

In summary, Apple will replace an iPhone for $199 due to any kind of damage (cracked screen, water damage, etc.) as long as the iPhone is still basically in one piece and you've never performed "unauthorized modifications."

I'm glad I read this before jumping on a Squaretrade plan.

 

[DirtySocks85]

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"

Apple's out of warranty replacement policy: my boss did this when he water damaged his 3GS last year.

http://www.apple.com/support/iphone/service/faq/#warranty7

 

[jwwpua]

If it's jailbroken, Apple won't help you. Squaretrade will.

Assume Apple will just replace your phone. It could be a newer bootrom or firmware which cannot be jailbroken (as has happened in the past).

Squaretrade, on the other hand, could repair your phone so that you could still be jailbroken.

Just something to consider if that's important to you.

 

[lorenwade]

The biggest difference: we're talking one claim here. ST offers multiple claims for $50 each, but $199 every time you go into the Apple store.

 

[KentuckyHouse]

I don't know if everyone has this option (it seems to vary from state to state), but I've got an insurance policy through State Farm on my iPhone 3GS. It covers EVERYTHING...theft, loss, water damage, drops, whatever. $40/year for $600 worth of coverage. If I ever have to use it, they basically cut me a check for $600 and that's it.

I was looking at all the other insurance carriers that were iPhone specific when someone suggested giving my State Farm agent a call and they said, sure, we can cover that. As far as I'm concerned, you can't beat that kind of coverage.

 

[dranakin]

Huh, I never knew about the Apple out of warranty service. It looks just like ADH, as it were. I might drop my ST warranty if it really is full ADH coverage.

Also, I understand that AMEX, etc. provide extended purchase coverage, but doesn't it explicitly exclude cell phones? I haven't the terms of my AMEX coverage in awhile, so maybe I'm wrong.

 

[watercrawl]

I don't know if everyone has this option (it seems to vary from state to state), but I've got an insurance policy through State Farm on my iPhone 3GS. It covers EVERYTHING...theft, loss, water damage, drops, whatever. $40/year for $600 worth of coverage. If I ever have to use it, they basically cut me a check for $600 and that's it.

I was looking at all the other insurance carriers that were iPhone specific when someone suggested giving my State Farm agent a call and they said, sure, we can cover that. As far as I'm concerned, you can't beat that kind of coverage.

I would never submit a claim for something like this through my home owners insurance policy. $40/year.....claim it once....get a check for $600.00....net $560.00 and then watch your premium jump by $200/year. Then, heaven forbid, file another ticky-tack claim and watch your insurance company dump you entirely. Then try to get insurance when another insurance company has dumped you. Bad idea....really bad idea IMHO. I've watched this exact scenario played out too many times.

 

[shinenjk]

Honestly, I don't get what all this hoopla is about. Most insurances are pure scams - they make money from your fears. That's really what the definition of an insurance is. Think of your car insurance - you're losing a lot of money if you're paying for unnecessary things like insurance for when your car gets hit by a falling tree.

So instead, use your credit card to buy electronic gadgets. Most credit cards have extended warranty programs for FREE with purchase, and some even have 90 day theft/loss guarantee for FREE as well. Make sure of course that you can pay off your credit card bill.

 

[Dsking85]

I don't think it makes sense either. especially people who use it for cracks in the glass. Pretty soon either front or back glass will be available for under $50.