Why would you not get insurance?

[thehustleman]

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

Rare?

NOT AT ALL!
http://mobile.nytimes.com/2013/05/0...row-but-the-industry-looks-the-other-way.html


people have had their phones in their hands and some big guy runs up and grabs it and runs super fast.

One guy even tried to steal my macbook pro until he saw that I had my gun on me then he started acting visibly nervous.

I see this stuff multiple times a day, I hear about it even when I'm not at work, phone thefts are anything BUT rare.

I will say I think about 80% of that is totally avoidable by being careful, but that other 20% you just can't control

http://www.foxnews.com/us/2012/10/20/thefts-cell-phones-on-rise-across-america/

In just one city, 1,300 phones stolen that year. It's from faux news, but if you'd like I can find a reputable source

 

[Ste Nova]

One guy even tried to steal my macbook pro until he saw that I had my gun on me then he started acting visibly nervous.

did he not have a gun too?

 

[kilcher]

How is insurance a rip-off?

it's 10 dollars a month which is 120 a year and let's say you make the MAX claims (2 per year). In that first year, you spent 120 on insurance.

the first claim at 170 for the deductible.

You just got a 650 phone for only 390 bucks total.

File another claim? Another 170 and now you're looking at 560 - LESS THAN the price of ONE replacement and you've had TWO replacements.

2 years and 4 claims will get you 1,120 dollars spent, but you just got 4 replacements over 2 years. You can't even find 4 iphone 5's on CRAIGSLIST in working order for that price.

If you re-buy it, you're looking at 1,300 for the first year in replacements, and 2,600 over 2 years.


How is that a ripoff?

Meanwhile applecare is 99 bucks, but it doesn't cover loss, or theft.

4 claims in 2 years? Or how about a more realistic scenario, one that applies to most people... You never need it and flushed $240 down the toilet.

 

[thehustleman]

did he not have a gun too?

No snatch and grab

 

[yg17]

4 claims in 2 years? Or how about a more realistic scenario, one that applies to most people... You never need it and flushed $240 down the toilet.

I'd think 4 claims in 2 years would be more indicative of fraud than someone who buys a new phone without insurance like the OP says.

I've never lost a phone, had one stolen or damaged one. But I can see someone maybe needing to file one claim during the length of their contract. But IMO, if you're filing 4 claims in 2 years, you're way too irresponsible to own a $600 phone. Or committing insurance fraud.

 

[thehustleman]

I'd think 4 claims in 2 years would be more indicative of fraud than someone who buys a new phone without insurance like the OP says.

I've never lost a phone, had one stolen or damaged one. But I can see someone maybe needing to file one claim during the length of their contract. But IMO, if you're filing 4 claims in 2 years, you're way too irresponsible to own a $600 phone. Or committing insurance fraud.

Clarification needed, when I say fraud it means people fraudulently buying phones with no intention of fulfilling the contract. Usually it's iphones, more often than not because of the street value and fast flip time. I demonstrated this to a coworker recently when he was going to trade an iphone 5 (black 16gb) in, use another upgrade for a white iphone 5 with 32gb. Verizon has a real bs trade in price of only 280. I usually advise my customers to sell it online because it will pull more money in for them, well I put it on Craigslist for him, had it stops in 20 minutes for 500 bucks. He paid for his 32gb iphone and still had money left.


That type of fraud hurts us a lot because I've seen coworkers' 3,000 dollar pay check down to 2,000.

I've been hit for as much as 500 on a check so we are very wary of fraud.



I don't mean insurance fraud unless I actually say "insurance fraud" verbatim.


Hope that cleared up some things

 

[617aircav]

I'd think 4 claims in 2 years would be more indicative of fraud than someone who buys a new phone without insurance like the OP says.

I've never lost a phone, had one stolen or damaged one. But I can see someone maybe needing to file one claim during the length of their contract. But IMO, if you're filing 4 claims in 2 years, you're way too irresponsible to own a $600 phone. Or committing insurance fraud.

My co worker lost 2 iPhones in 6 months. He didn't have insurance, so yes it's possible to loose your phone multiple times, thus that's why they allow you multiple claims.

 

[Neokiller309]

No. Screw that. That carrier insurance is bull. On t-mobile they tried to sell me insurance for my new iPhone. They said since its a"premium" device the insurance would be 12.99 a month to my bill. That's a load of ****. Especially since I've used their service before to replace one of my phones that the screen stopped working on. When you need a replacement they make you turn in the old phone and STILL charge you a deductible of between 150-250$. Why on earth would you do that? Over a two year period on their insurance it would cost you 312$ just for insurance alone. Not including the deductible if you need to get a replacement. Or you can get AppleCare+ for 99$ for two years, which for another 49 gets you a new phone and even covers accidental damages. With their prices and monthly payments. Even an out of warranty replacement is cheaper when you factor in the deductibles on top of the monthly charge.

 

[yg17]

My co worker lost 2 iPhones in 6 months. He didn't have insurance, so yes it's possible to loose your phone multiple times, thus that's why they allow you multiple claims.

I didn't say it wasn't possible, I said anyone who does is extremely irresponsible, or committing insurance fraud.

 

[5kylar]

I don't have any warranty on my iPhone for a couple reasons.
1. It only cost me $110 (No contract)
2. The warranty for me (If I had it) would cover everything except physical and water damage.. Pointless.

I do however have my iPhone in a case for good measure.

 

[Mr-Kerrse]

Never had phone specific insurance it's a rip off ! I have only lost one iphone which was on holiday, claimed on the holiday insurance

 

[thehustleman]

I don't have any warranty on my iPhone for a couple reasons.
1. It only cost me $110 (No contract)
2. The warranty for me (If I had it) would cover everything except physical and water damage.. Pointless.

I do however have my iPhone in a case for good measure.

Craigslist?

 

[5kylar]

Craigslist?

Koodo. It's a Canadian carrier.

 

[SC54HI]

People have to make their own assessments of risk & probability but TEC/Asurion seems like the least bang for the most bucks to this consumer. According to my research, coverage for 2 iPhones for 2 years comes at the following prices with these vendors:

Applecare+ = $200 (ADH only, 2 claims over 2 years, $49 to replace damaged phone, $0 for warranty replacement. New or Apple refurb phone replacements)

Square Trade = $200 (ADH only, Max Total Claim = $599. $599 reduces as claims are submitted until $0 left)

Ensquared = $260 (ADH + LS, 3 claims x $1000 over 2 years, $179 deductible per claim, replacement phones are "mostly new")

TEC/Asurion = $480 (ADH + LS, Max Total Claims =$3000 with 2 x Separate $1500 claims, $199 deductible, replacement phones are refurbs)

 

[thehustleman]

People have to make their own assessments of risk & probability but TEC/Asurion seems like the least bang for the most bucks to this consumer. According to my research, coverage for 2 iPhones for 2 years comes at the following prices with these vendors:

Applecare+ = $200 (ADH only, 2 claims over 2 years, $49 to replace damaged phone, $0 for warranty replacement. New or Apple refurb phone replacements)

Square Trade = $200 (ADH only, Max Total Claim = $599. $599 reduces as claims are submitted until $0 left)

Ensquared = $260 (ADH + LS, 3 claims x $1000 over 2 years, $179 deductible per claim, replacement phones are "mostly new")

TEC/Asurion = $480 (ADH + LS, Max Total Claims =$3000 with 2 x Separate $1500 claims, $199 deductible, replacement phones are refurbs)

I never heard of ensquared by that does sound like a great option.

It won't be after they get a lot of insurance fraud

 

[pnoyblazed]

whenever I think of trains and iPhone theft, I immediately think of NYC

 

[Jimmy James]

I self-insure.

 

[Fouracre44]

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

Hahaha this is truly, a great post and a fine example of human ignorance. Oh man I really do sympathise with you for having to deal with this whole situation.

I love the " careful with my devices " phone argument. It doesn't matter whether you are OCD, anal or keep your electronic devices in a bomb bunker, you need to put a case on your devices otherwise expect cracked screens, scratches & everything else.

People are careless with smart phones and you can tell when money matters to some people when they choose to protect a $600 + investment with insurance and a case. I mean, to want to use your phone without a case I understand, but really, they are not built for it ( most of them anyway ). The cost of a good case is around $30. Most of them are reliable and if you get a good silicone and hardshell combo you'll be protected from most everyday drops. Even a screen protector can provide some shatter protection.

How many iPhones are people going through? Why would you spend this much for a device to not protect it, at the very least with a skin or screen protector?

 

[spinedoc77]

People have to make their own assessments of risk & probability but TEC/Asurion seems like the least bang for the most bucks to this consumer. According to my research, coverage for 2 iPhones for 2 years comes at the following prices with these vendors:

Applecare+ = $200 (ADH only, 2 claims over 2 years, $49 to replace damaged phone, $0 for warranty replacement. New or Apple refurb phone replacements)

Square Trade = $200 (ADH only, Max Total Claim = $599. $599 reduces as claims are submitted until $0 left)

Ensquared = $260 (ADH + LS, 3 claims x $1000 over 2 years, $179 deductible per claim, replacement phones are "mostly new")

TEC/Asurion = $480 (ADH + LS, Max Total Claims =$3000 with 2 x Separate $1500 claims, $199 deductible, replacement phones are refurbs)

Is this accurate about Squaretrade? I have several warranties with them, and even have a warranty on my Lenovo Thinkpad Tablet 2 that I found very cheap.

My iphone 5/32gb insurance thru squaretrade was like $85 for 2 years with a $50 deductible per event, with one of the 30% coupon codes that are VERY easy to get. This includes accidental damage as well as repairs. In their fine print they say:

"If your Warranty Service Specialist determines that your item needs to be replaced or that the estimated repair costs would exceed the value of your coverage with us, you will receive a reimbursement so you can purchase a replacement item - up to the original purchase price of the time."

That is telling me they will refund up to the full value of the iphone so I can buy a new one, I'm not sure if they pro-rate at all, but there is no mention of pro-rating in what I could read in the fine print. I'd have to assume they would refund me the amount of money it would take me to walk into an Apple store and get a new ip5/32gb from them at full price.

 

[Hankster]

My co worker lost 2 iPhones in 6 months. He didn't have insurance, so yes it's possible to loose your phone multiple times, thus that's why they allow you multiple claims.

No offense to your friend, but if he lost two iPhones in six months then he's irresponsible and needs to grow up (mentally). Be more responsible.

 

[sviato]

My question is, u have a 650+ investment,

It's not an investment and insurance would just be an extra expense with a device that's already depreciating in value.

Not everyone is risk-averse and people who do buy insurance tend to be more careless than those who do not

 

[617aircav]

No offense to your friend, but if he lost two iPhones in six months then he's irresponsible and needs to grow up (mentally). Be more responsible.

Sure he does. My point was that some people can genuinely loose their phones multiple times in a year. I would not call him irresponsible, as he is accountable for his lost phones. He is more like careless when it comes to phones, and it's costing him.

 

[SC54HI]

Is this accurate about Squaretrade? I have several warranties with them, and even have a warranty on my Lenovo Thinkpad Tablet 2 that I found very cheap.

My iphone 5/32gb insurance thru squaretrade was like $85 for 2 years with a $50 deductible per event, with one of the 30% coupon codes that are VERY easy to get. This includes accidental damage as well as repairs. In their fine print they say:

"If your Warranty Service Specialist determines that your item needs to be replaced or that the estimated repair costs would exceed the value of your coverage with us, you will receive a reimbursement so you can purchase a replacement item - up to the original purchase price of the time."

That is telling me they will refund up to the full value of the iphone so I can buy a new one, I'm not sure if they pro-rate at all, but there is no mention of pro-rating in what I could read in the fine print. I'd have to assume they would refund me the amount of money it would take me to walk into an Apple store and get a new ip5/32gb from them at full price.

My understanding (which may be faulty) is based on having a Canon G15 camera insured for $500 with them. Here is what my policy said:

THE VALUE OF YOUR COVERAGE:
The value of your Protection Plan is in most cases equal to the purchase price of your item. Each time you file a valid claim, and we provide repair, the total value of your coverage is reduced by the cost of the repairs.Then if you file another valid claim with us on the same item, and repairs are estimated to cost more than the remaining value of your Protection Plan, the remaining value of your Protection Plan will be offered instead.

So, for example, if I incur a $150 repair through ADH, that means I have $350 left on my policy. If a subsequent incident of ADH costs more than $350 to fix, they'll give me the $350 in cash but no more. Perhaps I'm wrong to assume that their iPhone insurance operates the same way?

 

[Mrbobb]

It's not an investment and insurance would just be an extra expense with a device that's already depreciating in value.

Is no use explaining to them accounting.

People often label a phone purchase as "investment" to justify their (really) EXPENSE, and in this case strengthen their argument.

 

[Phil A.]

How is insurance a rip-off?

it's 10 dollars a month which is 120 a year and let's say you make the MAX claims (2 per year). In that first year, you spent 120 on insurance.

the first claim at 170 for the deductible.

You just got a 650 phone for only 390 bucks total.

File another claim? Another 170 and now you're looking at 560 - LESS THAN the price of ONE replacement and you've had TWO replacements.

2 years and 4 claims will get you 1,120 dollars spent, but you just got 4 replacements over 2 years. You can't even find 4 iphone 5's on CRAIGSLIST in working order for that price.

If you re-buy it, you're looking at 1,300 for the first year in replacements, and 2,600 over 2 years.


How is that a ripoff?

Meanwhile applecare is 99 bucks, but it doesn't cover loss, or theft.

I've had iPhones since the very first one was released and never dropped one, never lost one and never had one stolen. So, over the course of 6 years, I'd have wasted $720 for nothing if I'd had your insurance and if I claimed today I'd still have the $170 deductible making it $890 for a replacement. Sounds like a ripoff to me!

You can get a replacement for a dropped / damaged phone for $230 (which is only $50 more than the deductible and @ $920 for 4, less than the cost you quoted with insurance (of which you are guaranteed to spend a large percentage whether you claim or not!)) and most household insurances either include lost / stolen phone or they can be added for a lot less than $10 a month


Insurance makes money for insurance companies (otherwise they wouldn't offer it) and is peddled to people by preying on their fear and ignorance. I have household insurance because (however unlikely it is), I could be cleaned out of tens of thousands of pounds worth of stuff if I was burgled. A phone? Not worth worrying over IMO (and, yes, I do know the off-contract price because I always buy them off-contract: I live in the UK and get far better airtime deals that way)

If it really was essential and everyone saved by taking it, there would be no insurance offered...