Why would you not get insurance?

[takeshi74]

I've never understood this.

Stop assuming that your preferences are universal and it won't be so baffling.

So if you buy a $600+ device that you carry with you daily, why wouldn't you want to protect it?

Your example is just poor decision making and ignorance but there are a number of reasons.

For one thing, people have varying levels regarding what they're willing to insure. A $600 item isn't expensive enough for many to insure. There are those that view insurance only worthwhile for major items such as cars, homes, etc.

For another, some prefer to self insure.

Again, it's a matter of preference and you can't just assume that everyone should insure their iPhones just because you do. I actually use AppleCare+ but I don't assume that everyone else has to or else they're idiots. Each person needs to assess whether or not he/she thinks it's wanted or necessary.

My question is, u have a 650+ investment, what idiot wouldn't protect it against life?

Don't assume that those that don't share your preferences are idiots. An iPhone isn't an investment. It's a (rapidly) depreciating asset.

How is insurance a rip-off?

It's not always a ripoff but like casinos, the house always wins. If it wasn't profitable it wouldn't be sold. It wouldn't be profitable it a critical mass didn't actually need it and paid for it anyway.

I think the take home point is that people don't realize their $200 phone isn't actually a $200 phone.

That's a fair enough point but the OP seems only to be harping "buy insurance or you're a moran!" instead. In any case, an ignorant consumer only has his/her self to blame. Phone subsidies aren't a mysterious secret.

 

[Mrbobb]

Then we get charged back meaning our commission is taken back from us.

SOOoooooo, you ARE a phone salesman.

Case closed.

 

[Applejuiced]

His next thread.
Why would you not get our $40 chargers and $60 cases and stylish accessories?

 

[Kissaragi]

I sell phones for Verizon for a living

Explains why you want everyone to get insurance so badly...

 

[cynics]

SOOoooooo, you ARE a phone salesman.

Case closed.

Can't get anything passed you!

From first post.

True story : I sell phones for Verizon for a living (GREAT money contrary to what people told me I'd make) and I sold a woman a phone, an iphone 5.

 

[Mrbobb]

Can't get anything passed you!

From first post.

LOL.

and not much of a hustler.

 

[thehustleman]

Explains why you want everyone to get insurance so badly...

Actually it doesn't, I don't care if you insure because

1. I'm not trying to sell YOU (or anyone else on here) anything so I couldn't care less, it would be best if it's on a homeowners policy though more so than asurion.

2. When I DO still insurance, I only make 5 bucks in commission and if the customer cancels it within six months, I still get that charged back so it's no big deal to me.

3. I was merely wondering why someone wouldn't get it. If you want to take your chances, that's fine but I just never understood that.

Assumptions on here are funny, as much as I badmouth Verizon (I think it's wrong that they got rid of unlimited and the fact that they are forcing people to give it up when they upgrade is deplorable) I'm doing anything but trying to sell for them.

That's for work, not online

----------

His next thread.
Why would you not get our $40 chargers and $60 cases and stylish accessories?

Actually I offer accessories but if they don't want it or want something different, I direct them to Amazon or eBay...

 

[BaldiMac]

I was merely wondering why someone wouldn't get it. If you want to take your chances, that's fine but I just never understood that.

So, do you understand now?

 

[Cynikal.Mindset]

if and whenever I do buy add-on insurance to an electronic item I make sure I abuse the hell out of it...like FutureShop's product replacement plans...after a year or 2 and I want a new model, break the old model and use my insurance and get the latest up to date model. generally I don't do this but when I know its an item that is bound to deteriorate over time like speakers or amps they are getting blown by "accident" and I'm getting new ones. Any salesperson at these places that I have ever sold me these plans tells me off the record that "accidents do happen" *wink wink nudge nudge*...they get they their extra commissions and I get new stuff in a couple years...we all win!

 

[Kissaragi]

His next thread.
Why would you not get our $40 chargers and $60 cases and stylish accessories?

For only $29.99 extra!

 

[SC54HI]

We have TEC Asurion from VZW on both our iPhones 4. Will be out of contract in early July & when we upgrade to iPhones 5 eventually we'll drop the TEC and probably go with Applecare+ if we go with anything.

Why would we do so, OP asks? Well, here are some points:

(1) We do our best to take care of the devices, including sturdy cases that protect the devices while in handbags or pockets, and things like waterproof bags if fieldwork of some kind is needed. Nothing is surefire or 100% but we do our best.

(2) Consumer Reports recommends against extended warranties which include TEC/Asurion. They say the following: "Only 15 percent of buyers polled got a new phone because the old one broke, and only 2 percent because the phone was lost or stolen. A better idea: Keep your old phone until the new phone's contract ends. If you lose or break the new phone, reactivate the old one and use it until you qualify for a free or low-cost phone."

(3) If you read VZW's FB page (https://www.facebook.com/verizon?fref=ts), about a fourth of the complaints have to do with poor customer service from Asurion, including multiple defective replacement phones, major assessments of damage AFTER an in-store inspection by VZW employees, etc. Not a lot of satisfaction there. [OP: what is UP with VZW's decision to handle customer service issues on their FB page? What a train wreck!]

(4) I for one am not unhappy with the planned changes to Applecare + especially if meant being able to have minor repairs done to my existing phone, which took me some time & trouble to set up the way I like it. Getting a new or Apple refurb replacement would be fine as well, if that's how a particular issue worked out, but I'm OK with fixing what's broke & keeping what works when it's fixed.

FYI to those thinking about a rider on your existing insurance: According to our home/auto insurance agent at State Farm, they no longer cover smartphones in their extra coverage riders for home owners' policies, which is too bad.

 

[lordofthereef]

SOOoooooo, you ARE a phone salesman.

Case closed.

Was this ever in question?

From the original post, maybe three sentences in...

True story : I sell phones for Verizon for a living...

 

[loskickking23]

I have had every iphone and I have never needed insurance for anything...

 

[lordofthereef]

That's a fair enough point but the OP seems only to be harping "buy insurance or you're a moran!" instead. In any case, an ignorant consumer only has his/her self to blame. Phone subsidies aren't a mysterious secret.

Well, that's true. But he did preface everything by saying that people come in all the time thinking they could just get a new phone for their on contract cost. You are right, the ignorant customer has himself to blame. I think this is where the OP's frustration stems, and perhaps he didn't use the best means of communicating this with us.

 

[srsub3]

I bought insurance once for my first led tv. after that I decided not to buy it anymore. WHy? because it is useless.... phone stolen? If you don't leave it on tables in bars or restaurant it won't happen... at home I'm covered by my insurance. phone defective? apple insurance is for 2 years in EU... after 2 years a phone is ready for retirement.... damage? Is my fault, I know the value of the thing and I try to pay as much attention as possible....
For OP insurance is good for sure because he gets bonus per every contract he signs...

 

[Mrbobb]

You are right, the ignorant customer has himself to blame. I think this is where the OP's frustration stems, and perhaps he didn't use the best means of communicating this with us.

This thread should had been (honestly) titled, "I sell phones and I want you to buy insurance so you don't have to come back to me crying when your phone get damaged."

Is the nature of the business, your street Joe and Joely are made to believe their phones are cheaper than they really are. They don't care or want to understand about subsidy, is like, Contract? fine, I'll sign, where else would I go get service anyway (smart shopper here excluded).

But OP, that's how your employer made it, they designed the system, and now you have to deal with it.

I used to support software and I hated that my employer put out half-baked products, not really ready for prime time, and they made (still do) customers pay big$$$ for support because the customer can't figure out stuff themselves. BUT that's capitalism, that's how things works. You are a consumer, u gotta do that works for you. You are the front line vendor, and you want the job, u put up with it.

 

[donnaw]

I got my first smart phone in 2003. Never bought insurance and have never needed it.

My son, on the other hand, has the worst luck. He has had his phone fall out of his pants pocket into a stream, he has dropped them, and one time the screen literally cracked while using it (I was actually looking at it with him at the time, he wasn't holding it tightly or anything, it just cracked). He is the same with cars, he has never had a wreck that was his fault but he is constantly getting hit, or the transmission goes out right after the warranty expires. The list is too long to even begin to write.

Hence he now gets insurance on EVERYTHING. They even bought one of those home owners warranty things and it has actually saved them money. i think they are one of the few it actually pays off for. He's not really careless but he is a bit spacey and very unlucky. I don't think he's ever had a phone that he didn't use the insurance on.

So insurance would be a bad buy for me but for him, a necessity.

 

[wordoflife]

Ouch that story sucks. But I guess insurance depends on the person. If she had a case and had been more careful using her phone, then i think she would still have at least $250 with her

 

[maliu]

In twenty something years of having cell phones I have never broken one or have one have a problem until after my upgrade date. If I broke my iPhone and had to replace it for $229 I will still have made out like a bandit rather than paying insurance on every phone I've owned. Your mileage may vary. I am careful with my electronics.

 

[BenTrovato]

If you're too poor to replace your iPhone, or too irresponsible to take care of it, then you probably shouldn't even have it to begin with. Gadget insurance and extended warranties are generally a big ripoff and huge money makers for the people who sell them. Why do you think the stores try so hard to sell them? To protect you?? LOL

Lol that's funny. I kinda of agree with this though. If popping out $500 for a used iPhone 5 (when yours fails a year after you bought it) is going to break the bank for you then you're better off getting a free phone on contract and putting efforts towards creating a better financial situation for yourself instead of having the latest telephone. Just my $.02, do what you feel is right for you.

 

[Looon]

Lol that's funny. I kinda of agree with this though. If popping out $500 for a used iPhone 5 (when yours fails a year after you bought it) is going to break the bank for you then you're better off getting a free phone on contract and putting efforts towards creating a better financial situation for yourself instead of having the latest telephone. Just my $.02, do what you feel is right for you.

Plenty of people try to live beyond their means
Credit cards
Vehicle Leasing
there's plenty of this stuff going on in other places besides cell phones so what do you expect?

 

[TWD98j]

Yeah I have owned the "odd numbered" iPhones....original > 3GS > 4S and I have never bought into the insurance.

Granted I am with AT&T and not with VZW but I have seen first hand how VZW sales people relentlessly push everything onto their customers and it is not pretty. I have never chosen to sign up for insurance for my iPhone.

The way I see it, I literally take my iPhone EVERYWHERE I go. Plus, I have a mophie case on it which is hard rubber. AND, the fact that Apple warranties iPhones for a year is OK with me, especially since I have an Apple store in my hometown here. Makes setting up an appointment quite easy.

But no, I have NEVER opted for insurance from the carrier. Only time I ever did that was a long time ago when I was with Sprint. They only had a $50 deductible at the time.

With Apple's warranty, I feel like I'm good. I have dropped my iPhone 4S MAYBE 3 or 4 times since launch day. But the mophie case keeps it from sustaining contact with the ground as a result of falling. In other words, it works as great as it did on launch day.

I've seen VZW try and push accessories and insurance onto unsuspecting individuals and it's really sad. What's even MORE SAD is the fact that the VZW minions actively try to dissuade customers from buying an iPhone.

I understand that VZW makes almost nothing off iPhone sales, but seriously...they incessantly try to push any iPhone interested customer into the arms of an android device. Any mere mention of "I want to buy an iPhone" in a VZW store results in the sales person saying "Let's go over here in the corner and talk about that....why do you want an iPhone?" PATHETIC.

In the end, it's ALL about profit and NOT about what's best for the customer...of course.

 

[Radiating]

I've never understood this.

People deny insurance, then if they lose our break their phone they want to buy another AT THE CONTRACT PRICE!

90% of people didn't know how much phones really costed until T-mobile did what they did.



So if you buy a $600+ device that you carry with you daily, why wouldn't you want to protect it?


True story : I sell phones for Verizon for a living (GREAT money contrary to what people told me I'd make) and I sold a woman a phone, an iphone 5. She didn't want a case, she didn't want insurance. I suspected fraud at first, but she ported her number and traded in her old at&t iphone 4 so she was legit.

I practically begged her to get insurance, but she didn't. She claims "i don't drop phones" and when I explained how silly that was, that drops are accidents, no one does it on purpose and some people drop them due to other people bumping them unexpectedly or sometime else breaks it, she still refused, i wished her luck.


2 weeks later, she comes back to me just after her 14 days is up - she dropped her phone. She asks me to switch her phone out for a good one. Told her I couldn't do it because we can't take returns on damaged devices. She was upset, then said "fine, I'll buy another one" then when I rang up the device, she complained about the price, said I was cheating her, the phone is only 200, i explained the real price, told her it is only that price with a contract she says "i have a contract" i explained how it works, she wasn't happy, but me being me instead of saying "i told you so" I did my best to help her find a place to fix it.

Cheapest place wanted 300.

She ended up going to the apple store and paying 250 for a replacement.

I asked her about insurance, she said no and preferred apple care.

A month after that, she came back stating that her phone was stolen.

Said as she rode the train, at one stop some guy snatched it and ran off. To make matters worse she chased him and HE MACES HER IN THE FACE!

She recovers and asks if there was anything we can do, I told her no.

She asked if she could add insurance and I told her that it would be insurance fraud so it wasn't possible.

She cried.


My question is, u have a 650+ investment, what idiot wouldn't protect it against life?

It's a great value

iPhone replacements when you break them are $250, Apple care is $99 + $50 for a replacement, so $150 vs $250, you're paying upfront for a 40% discount.

If you do the math, and you replace your phone every 2 years, and understand that Apple lowers the OOW replacement cost by $50 every year and then factor in inflation and interest, you would have to:

Break your phone once every 28.7 months CONSISTENTLY just to break even on Apple care.


I use a case, because I drop my phone every week. I have never broken a phone by dropping it. I also replace it every year. With interest and inflation for those that replace their phone yearly you'd have to break my phone once ever 18.6 months CONSISTENTLY just to break even on Apple care.

I think Apple care makes sense for those who buy a new device every 2 years, 3 years is a long time to go between breaking a phone. However it doesn't make sense for those that upgrade very year, as long as they don't usually break phones. The yearly upgraders are better off keeping $250 ready for a replacement over investing up front every year.

Stolen phones are a rare occurence though, so no need to worry about those.

 

[AFDoc]

You should probably save your sales pitch for your customers.

Out of all my i's I've only had to buy 2 OOW replacements. Out of all the i's I've had $400 is nothing compared to what I would of paid for insurance.

I know accidents happen but if you can't take care of your phone well enough to not need insurance then maybe a smartphone isn't the best phone option.

 

[lordofthereef]

iPhone replacements when you break them are $250, Apple care is $99 + $50 for a replacement, so $150 vs $250, you're paying upfront for a 40% discount.

If you do the math, and you replace your phone every 2 years, and understand that Apple lowers the OOW replacement cost by $50 every year and then factor in inflation and interest, you would have to:

Break your phone once every 28.7 months CONSISTENTLY just to break even on Apple care.


I use a case, because I drop my phone every week. I have never broken a phone by dropping it. I also replace it every year. With interest and inflation for those that replace their phone yearly you'd have to break my phone once ever 18.6 months CONSISTENTLY just to break even on Apple care.

I think Apple care makes sense for those who buy a new device every 2 years, 3 years is a long time to go between breaking a phone. However it doesn't make sense for those that upgrade very year, as long as they don't usually break phones. The yearly upgraders are better off keeping $250 ready for a replacement over investing up front every year.

Stolen phones are a rare occurence though, so no need to worry about those.

Replacements are $229 for the iPhone 5, unless they changed something recently (I say it this way because I know tmobile just changed their iPhone 5 price and I wasn't aware).

I am not sure I follow why a person who upgrades every two years is better off with apple care than the one who upgrades yearly. Your chances of damaging your phone don't really change based on how long you've had it. If you just want to extend the manufacturers warranty, you get that free by purchasing through Amex or other credit cards. Also, if you do buy apple care, and sell your phone, apple will refund you the prorated value of the apple care ($50 after a year has passed). You can use that refund right away towards your new upgrade or anything else, for that matter.