Squaretrade warranty makes no sense

[e²Studios]

No, it is because you paid 100 for the warranty. With the Apple $199 approach you dont need any upfront policy.

The only way ST makes sense is if the truely repair vs. pay out. Anyone have an iphone repaired for less than $199 using SquareTrade?

Actually no. The first repair would be $199 Apple, $150 (or 130 if you go the $80 deal) ST. The following repairs would be $50 ST, $199 Apple.

In the long run ST isn't a bad deal. Even in the short term, I got in for the $80 price and would much rather pay $130 then $199 for the first repair. If it breaks multiple times like a friends 3GS did it will save you more in long run since you would only be paying the $50 deductible and not the $199 price.

 

[baller1308]

No, it is because you paid 100 for the warranty. With the Apple $199 approach you dont need any upfront policy.

The only way ST makes sense is if the truely repair vs. pay out. Anyone have an iphone repaired for less than $199 using SquareTrade?

I don't understand what you are saying. With ST you pay $100 for the 2 year coverage. Then you pay $50 per incident after that, up to the said limit above. But, with Apple you pay $199 every time.

 

[Biff...]

I went the self insure way 2 years ago when I bought my 3g. I opened up an extra ING account and have been depositing $5 a month sinch then. Although its not to much money I figured combined with Applecare, the $135 I have in the account could offset any accident/theft or damage. I'm going to roll over the money and continue the deposits for my iphone 4. In a few years I might have enough to buy and iphone 6

 

[HitchHykr]

Originally Posted by HitchHykr
As per SquareTrade website:

"Please note that unlocked iPhones are not eligible for coverage from SquareTrade. Unlocking an iPhone after purchase will void a SquareTrade warranty"

I doubt they'll check if it's unlocked.

Riiiiigth, SquareTrade just put that statement there because they had space to fill on the web page. And Insurance companies add clauses to their policies just for the hell of it.

The information is out there so it's your choice, do you rather pay $100 now just in the case that you will need a repair/replacement in which case you will end up saving $50. Or do you rather keep the $100 and hope that you will not need a replacement, and if you do need one then you'll end up spending just $50 more.

 

[baller1308]

Riiiiigth, SquareTrade just put that statement there because they had space to fill on the web page. And Insurance companies add clauses to their policies just for the hell of it.

The information is out there so it's your choice, do you rather pay $100 now just in the case that you will need a repair/replacement in which case you will end up saving $50. Or do you rather keep the $100 and hope that you will not need a replacement, and if you do need one then you'll end up spending just $50 more.

Well, you could have a legitimately unlocked iPhone.

 

[HitchHykr]

Well, you could have a legitimately unlocked iPhone.

Go argue that with SquareTrade. i just posted what's on their website.

 

[aggiesrwe03]

I don't understand what you are saying. With ST you pay $100 for the 2 year coverage. Then you pay $50 per incident after that, up to the said limit above. But, with Apple you pay $199 every time.

How do you not get this $100+$50= $150 for first repair second repair or replace is $50

Apple first repair $199 second repair $199 plus apple does not absolutly have to replace or repair because you have no agreement with apple they can deem any damage out of warranty and choose to have you pay retail if you never break your phone then yes you are out $100 but if you do then squaretrade is not a bad deal

 

[Rayfire]

From their website: "Once you ship in a broken iPhone and we receive at our depot, 80% of phones are fixed and shipped back the same day"

Also, from their twitter: "We do cover multiple repairs - but if we can't repair we pay you full (unsubsidized) phone price & contract is fulfilled."

And this: "To keep the price cheaper. Few ppl will ever hit $699 limit; repairs costs $100-200, so $699 gets you 3-6 repairs."

Sounds like it'll cover multiple claims if the phone can be repaired. If you damage it so badly that it needs to be replaced entirely, then you will need to purchase the insurance again. But I would guess that most drops will just break the glass and will be fairly easy (cheap) to repair.

Actually no. The first repair would be $199 Apple, $150 (or 130 if you go the $80 deal) ST. The following repairs would be $50 ST, $199 Apple.

In the long run ST isn't a bad deal. Even in the short term, I got in for the $80 price and would much rather pay $130 then $199 for the first repair. If it breaks multiple times like a friends 3GS did it will save you more in long run since you would only be paying the $50 deductible and not the $199 price.

So far, those two posts above clearly state how ST works.

Basically the difference between Squaretrade and Apple's Out of Warranty service is, for ST you just pay the $50 deductible until you fully exhaust your repair costs, which they deduct from the $599 value (oops I think $699 based above) and they said it can get you up to 3 instances (or more) of fixing since it usually costs around $199. Please remember however that normal wear and tear doesn't cost a $50 deductible to replace, only those stated under their ADH (drops, spills) require the deductible. I've also heard too some repair costs go over $199 (is this true?)

So with Apple, assuming something bad happened to your iPhone and it is considered out of warranty (drops, spills, etc), you pay $199 but you get a refurbished iPhone right away.

With Squaretrade, as long you have their warranty (that you paid for $99, or some $80) then you just pay $50 and they fix it, give and take five days then you get your iPhone. So you just have to be patient when they're fiixing it I guess. The only thing is, if they can't fix it - then they'll issue you a reimbursement for whatever your remaining value for your insurance(?) is, then your warranty is already fulfilled so you have to buy one again if needed.

So for example, you dropped your iPhone 3 times and the glass screen breaks.
With Apple that's $199 + $199 + $199 out of pocket always.
With ST that's (get insurance first) which is $99 then $50 + $50 + $50

So that's close to $600 on Apple, against close to $250. Someone correct me if I'm wrong here but that's how I understood how ST and Apple's OOW works. Both however doesn't cover theft/loss.

 

[terraphantm]

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 know apple says 90 day warranty, but my 3G S is showing a warranty expiration date of April 2011 (I bought the phone in June 2009, had it replaced multiple times. Last time was in April)

 

[ZipZap]

So far, those two posts above clearly state how ST works.

Basically the difference between Squaretrade and Apple's Out of Warranty service is, for ST you just pay the $50 deductible until you fully exhaust your repair costs, which they deduct from the $599 value (oops I think $699 based above) and they said it can get you up to 3 instances (or more) of fixing since it usually costs around $199. Please remember however that normal wear and tear doesn't cost a $50 deductible to replace, only those stated under their ADH (drops, spills) require the deductible. I've also heard too some repair costs go over $199 (is this true?)

So with Apple, assuming something bad happened to your iPhone and it is considered out of warranty (drops, spills, etc), you pay $199 but you get a refurbished iPhone right away.

With Squaretrade, as long you have their warranty (that you paid for $99, or some $80) then you just pay $50 and they fix it, give and take five days then you get your iPhone. So you just have to be patient when they're fiixing it I guess. The only thing is, if they can't fix it - then they'll issue you a reimbursement for whatever your remaining value for your insurance(?) is, then your warranty is already fulfilled so you have to buy one again if needed.

So for example, you dropped your iPhone 3 times and the glass screen breaks.
With Apple that's $199 + $199 + $199 out of pocket always.
With ST that's (get insurance first) which is $99 then $50 + $50 + $50

So that's close to $600 on Apple, against close to $250. Someone correct me if I'm wrong here but that's how I understood how ST and Apple's OOW works. Both however doesn't cover theft/loss.

You left out that your maximum benefit is also reduced. So lets say you broke the phone. You send it to ST with $50 and they fixed it. Fine, but the cost of the fix was say $220. Then your $599 benefit is now 379.

Lets say you then broke the glass 6 months later. You pay another $50, and your benefit is reduced by anothr $199 for the repair. Now your benefit is $180.

Keep in mind I am making the numbers up.

So now I have broken my phone yet again, do I send it in with $50 or do I go to Apple for a OOW replacement. You see, what happens if this third repair exceeds $180...ST will charge me the difference.

So yes, I am spending less with ST but that last fix (depending on your balance) could be tricky and if you just go to Apple at that point then you are throwing away insurance value.

I'd like to see what ST charges for typical repairs to see how the costs might play out if I am the kind of person that breaks the phone regularly. In my mind no ST repair should exceed the OOW $199.

Oh...and I dont see how anyone ever gets a new phone with the ST payout at ANY point.

The payout is always less than the cost of a new noservice phone.

 

[thelatinist]

I figure the value of a warranty based on the cost of warranty/repair multiplied by the likelihood of incurring that cost. I'll call this the cost-risk (which I know is a technical economic term with a different meaning). Let's assume for a moment that there is a 20% chance I will break my phone once in two years, a 10% chance I will break it a second time, and a 5% chance I will break it a third time. These figures are very high, since I have never broken any phone even once, but they are nice round numbers.

SquareTrade:

$100 * 100% = $100
$50 * 20% = $10
$50 * 10% = $5
$50 * 5% = $2.50
----------------------------
Total cost-risk = $117.50

Apple Replacement:

$199 * 20% = $39.80
$199 * 10% = $19.90
$199 * 5% = $9.95
---------------------------
Total cost-risk = $69.65

As you can see, the cost-risk of Apple Replacement is still far lower than SquareTrade even after three repairs. This is because with SquareTrade there is an initial $100 outlay that I have a 100% risk of paying for insurance that I have an 80% chance of never using.

 

[millerb7]

I just put up $200 into my savings account in case I break one, and I buy applecare for $35 online for any type of manufacture defects...

Seems to work for me.

 

[DynaFXD]

Most insurances are pure scams - they make money from your fears.

I don't think i would use the word "scam", but yeah, I agree. Actuaries know the payout rates for policies that they underwrite and price them accordingly. They will sell you a policy that is in their favor, not yours. These insurance policies and extended warranties are such fat free money that they are making up an increasinly huge percentage of bottom lines out there (looking at you Best Buy, et al.) The real savings can be had by turning down ALL item specific insurances and extended warranties. You may get burnt on one, but will be net ahead in the long run.

(yes yes yes, of course we insure things as required by law or those that would ruin us financially (house, life insurance for kid's benefits)).

 

[ZipZap]

I just put up $200 into my savings account in case I break one, and I buy applecare for $35 online for any type of manufacture defects...

Seems to work for me.

Where did you find legit applecare online for $35

 

[millerb7]

Where did you find legit applecare online for $35

Ebay.

I also get my mobileme there for like $50.

 

[baller1308]

I figure the value of a warranty based on the cost of warranty/repair multiplied by the likelihood of incurring that cost. I'll call this the cost-risk (which I know is a technical economic term with a different meaning). Let's assume for a moment that there is a 20% chance I will break my phone once in two years, a 10% chance I will break it a second time, and a 5% chance I will break it a third time. These figures are very high, since I have never broken any phone even once, but they are nice round numbers.

SquareTrade:

$100 * 100% = $100
$50 * 20% = $10
$50 * 10% = $5
$50 * 5% = $2.50
----------------------------
Total cost-risk = $117.50

Apple Replacement:

$199 * 20% = $39.80
$199 * 10% = $19.90
$199 * 5% = $9.95
---------------------------
Total cost-risk = $69.65

As you can see, the cost-risk of Apple Replacement is still far lower than SquareTrade even after three repairs. This is because with SquareTrade there is an initial $100 outlay that I have a 100% risk of paying for insurance that I have an 80% chance of never using.

This is really confusing. I kind of understand what you are trying to say but realistically, if you break it 3 times you pay $250 with ST and $600 with Apple. If you never break it, you save money going the Apple route. If you break it just one time, you save money going the ST route.

 

[8mpg]

This is really confusing. I kind of understand what you are trying to say but realistically, if you break it 3 times you pay $250 with ST and $600 with Apple. If you never break it, you save money going the Apple route. If you break it just one time, you save money going the ST route.

I agree..his model and theory seems way off in my book.

The simple fact is this... Squaretrade is a great company and offers plans based on likelyhood of people damaging their phones. They have actuaries that come up with probabilities and cost analysis. They are there to make money, not become a non-profit. Some people will use and abuse while others will never use it.

If you break your phone once....you come out ahead with Squaretrade.

 

[cocky jeremy]

I was thinking about going with Squaretrade for a few reasons. My main reason was resale value next year. (It comes with 2 years of protection) Then i was reading the fine print. It won't cover a phone if it's been unlocked. Why? WTF is the point of that? Software unlocks have nothing to do with hardware. It's like saying they won't cover you dropping it on a sidewalk and breaking it if you have too many contacts in your address book. Completely stupid.

 

[ashVID]

Yikes, look at what I started! I over simplified it but thelatinist has it nailed. His numbers, albeit probably arbitrary, lay out the LIKELIHOOD of a claim. Will the ST warranty pan out if you break your phone 3 times? Probably, but what is the likelihood of such? I would argue that you are far more likely to have your phone lost or stolen than you are to break it more than once in the term and the ST does not cover loss or theft.

If you actually take the time to analyze the ST policy you will arrive at the same conclusion, even when it comes to multiple claims. They are a reputable company, it's not a scam at all. The real issue is that Apple has trumped the value of their insurance with the $199 in store swap policy.

Bottom line, if you are insuring your phone, you need something that covers theft, otherwise, Apple's replacement policy is essentially $300 - $400 free insurance with a $199 deductible.





ash =o)

 

[mlts22]

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 know USAA has similar. AFIAK, they cover theft, damage, accidental microwaving, water damage, and even power surges last time I checked.

 

[Rayfire]

You left out that your maximum benefit is also reduced. So lets say you broke the phone. You send it to ST with $50 and they fixed it. Fine, but the cost of the fix was say $220. Then your $599 benefit is now 379.

Lets say you then broke the glass 6 months later. You pay another $50, and your benefit is reduced by anothr $199 for the repair. Now your benefit is $180.

Keep in mind I am making the numbers up.

So now I have broken my phone yet again, do I send it in with $50 or do I go to Apple for a OOW replacement. You see, what happens if this third repair exceeds $180...ST will charge me the difference.

So yes, I am spending less with ST but that last fix (depending on your balance) could be tricky and if you just go to Apple at that point then you are throwing away insurance value.

I'd like to see what ST charges for typical repairs to see how the costs might play out if I am the kind of person that breaks the phone regularly. In my mind no ST repair should exceed the OOW $199.

Oh...and I dont see how anyone ever gets a new phone with the ST payout at ANY point.

The payout is always less than the cost of a new noservice phone.

I may have forgot to clearly elaborate it, hoping the first quoted replies I attached will explain that the repair costs will reduce your maximum benefit.

I agree..his model and theory seems way off in my book.

The simple fact is this... Squaretrade is a great company and offers plans based on likelyhood of people damaging their phones. They have actuaries that come up with probabilities and cost analysis. They are there to make money, not become a non-profit. Some people will use and abuse while others will never use it.

If you break your phone once....you come out ahead with Squaretrade.

I second this.

 

[goodscoolwf]

Is there anywhere that says Apple will replace a broken phone for $199? I want some more about this aspect of information.

 

[bruinsrme]

Is there anywhere that says Apple will replace a broken phone for $199? I want some more about this aspect of information.

back on page two of this thread there was a link posted
https://forums.macrumors.com/posts/10467244/

 

[ZipZap]

Ebay.

I also get my mobileme there for like $50.

Of course Ebay, but when I looked I saw none for $35 Buy it now. Minimum I saw was $45, and for your mobile me $55.

Also, I should advised folks that you should get a package with the box so that you have the serial number. Apple can refuse to give you service if you did not but a legit copy (from authorized E/retailer, and with S/N). Its in their TOS.

I am not saying that a code alone wont work...but it could be trouble.

 

[Intrepyd]

Squaretrade seems worth it if you think you might break (but not lose) your phone more than once. If you break it once, Squaretrade is slightly cheaper than Apple's out-of-warranty service. If you never break it (the outcome for most users), you obviously come out ahead relying on Apple's OOW service option and forgetting about Squaretrade. All in all, Apple seems to be the best cost-risk balance.

Safeware, on the other hand, covers loss/theft. This is some value added. For $99 for a year, you're covered for loss, which would put you in the hole for $699. One caveat. Their policy only covers $500. I talked to their rep, and he stated "that's the discount iPhone price for the 32GB, which you can get from AT&T 6 months following the original purchase." Seems like there are two factual inaccuracies in that statement. Safeware is tempting for the loss/theft coverage, but if they only cover $500, that's still a substantial cost out of pocket.