Phone Insurance a rip off?

[irev210]

Personally, I don't think insurance offers any value.

 

The prices they charge are just insane.

 

I'd rather just buy a used Nexus 5 off eBay and call it a day if my phone breaks.

[JeffDTD]

No insurance for me either.  

 

OP, how rough are you with devices?  If you're prone to break a device, then insurance *could* make sense. I've also had great luck with keeping my devices in a TPU case with a nice screen protector.    So far, I've gone GS, GS2, GS3, GN2, GN3 with no physical damage.   The hardware used in the galaxy line is generally reliable, meaning you're less likely to have a dead mic , speaker or charging port etc.  

 

Lets say you break 1 device in 24 months.   A $11/m + $150 deductible, You spent $414 for the replacement, which is most likely refurbished. Sprint also enjoyed charging you taxes and surcharges on the $11 insurance at their variable 10-15%.   That alone would cause me to look at squaretrade or BB (as already mentioned) It only makes sense if you're likely to need 2-3 replacements in that time frame.  

[AMejia1976]

No insurance for me either.  

 

OP, how rough are you with devices? 

 

This is by far the best question. I like to think that most of us here at S4GRU are probably more careful and go to great lengths to take care of our investments. 

 

On the other hand there are those who drop their phones at least once a week and expect nothing will happen. Or the ones who willingly let their 2 year old child play with the phone. Or the ladies who put the phone in the back pocket then go riding in a motorcycle. This weekend a had a customer who went fishing and as he swung his line the phone flew off his shirt pocket; something that had not happened once in his 10+ years going fishing. 

 

Accidents happen. People will forget. Others wont pay attention to your stuff.

 

Not going to disclose the total but in 2012 a major cell phone retailer had over 1 million claims on mobile phones. Just one retailer; wonder what the real total is.

[Matt.NY.Tech]

I have this discussion with customers quite often. Please keep in mind that for $11 a month its not JUST insurance. That includes service and repair as well. 

 

The market I work in is mostly people living comfortably within their means and the piece of mind is what they don't mind paying for.

 

Personally, I find that putting a little more effort into ensuring my phone is always "safe" beats the monthy/yearly cost of TEP. 

[Mondays In Flames]

I find Insurance to be a total scam. But I've had very good luck with my phones working reliably.

 

I've had an HD7, the Sensation, the EVO LTE and the HTC ONE and not once have I ever had to replace the devices. The HD7 and Sensation are still running and still work with no hardware issues. I'm extremely careful with my phones. Now I have the Nexus 5, and likewise I have no intent on buying insurance...

 

It's always nice to have it just in case, but that's just it... Just in case. And with 4 prior smartphones I never had a need for it. So just in case doesn't cut it for me.

 

Hope this helps lol

 

 

-Luis

[The Dave]

After dealing with 2 replaced Evo 3Ds, I feel insurance is a good thing, especially at first. Between defects and the high value of a newly released device, it seems like a good investment. The best part of TEP is how easily you can drop the coverage penalty free after you feel that the risk vs value equation is more towards dropping the monthly investment once it becomes more likely that you can find a low cost solution if some comes up with your phone.

[Rocket87]

Tep is difference between a happy customer and a pissed one. I work at a extremely busy service and repair store and people do not understand the true cost of thier device. Which is why im.glad sprint is.moving away from subsidie s.Sprint aims for a 80% attachment rate and most reps hit it or are close. You guys here are not the normal customers though.

 

Sent from tapatalk

[cletus]

No insurance for me even though I am on an MVNO. Know why? My cellphone is covered by my credit card. https://www.wellsfargo.com/credit-cards/features/cell-phone-protection/

 

Fine print:

Protection is subject to a $25 deductible and maximum benefit limit of $600 per occurrence. Protection covers cellular telephones billed to your Wells Fargo Credit Card, subject to a maximum of two claims, per twelve-month period, per Wells Fargo Credit Card account number. Protection covers the primary line and up to the first three additional lines listed on your provider’s monthly statement. Cellular telephones that are stolen or damaged are protected. This benefit does not cover cellular telephones that are lost. 

 

So, with that in mind why pay $11/mo for a high deductible insurance?

[S4GRU]

No insurance for me even though I am on an MVNO. Know why? My cellphone is covered by my credit card. https://www.wellsfargo.com/credit-cards/features/cell-phone-protection/

 

Fine print:

Protection is subject to a $25 deductible and maximum benefit limit of $600 per occurrence. Protection covers cellular telephones billed to your Wells Fargo Credit Card, subject to a maximum of two claims, per twelve-month period, per Wells Fargo Credit Card account number. Protection covers the primary line and up to the first three additional lines listed on your provider’s monthly statement. Cellular telephones that are stolen or damaged are protected. This benefit does not cover cellular telephones that are lost. 

 

So, with that in mind why pay $11/mo for a high deductible insurance?

 

 

 

That is a great benefit.  I wonder how many people who have this coverage through Wells Fargo do not realize it and unnecessarily pay for insurance.

 

 

Robert

[AMejia1976]

No insurance for me even though I am on an MVNO. Know why? My cellphone is covered by my credit card. https://www.wellsfargo.com/credit-cards/features/cell-phone-protection/

 

Fine print:

Protection is subject to a $25 deductible and maximum benefit limit of $600 per occurrence. Protection covers cellular telephones billed to your Wells Fargo Credit Card, subject to a maximum of two claims, per twelve-month period, per Wells Fargo Credit Card account number. Protection covers the primary line and up to the first three additional lines listed on your provider’s monthly statement. Cellular telephones that are stolen or damaged are protected. This benefit does not cover cellular telephones that are lost. 

 

So, with that in mind why pay $11/mo for a high deductible insurance?

 

Maximum benefit of $600 per occurance. Even a GS2 or GS3 on Sprint goes for $500 outright. An IPhone 5C is $549 and a 5s is $649.

 

If you decided to go for a GS2/GS3 or the 5c the out of pocket is only the $25 deductible but if you go for the 5s then is $150.

 

Not to mention these are prices from the Sprint site. For all we know the price charged by WF could be higer.

 

Though I will admit they are creative and are making a great attempt to capture a profitable service.

[cletus]

Maximum benefit of $600 per occurance. Even a GS2 or GS3 on Sprint goes for $500 outright. An IPhone 5C is $549 and a 5s is $649.

 

If you decided to go for a GS2/GS3 or the 5c the out of pocket is only the $25 deductible but if you go for the 5s then is $150.

 

Not to mention these are prices from the Sprint site. For all we know the price charged by WF could be higer.

 

Though I will admit they are creative and are making a great attempt to capture a profitable service.

For sure I totally agree with you. This was actually partially one of the reasons I bought a Nexus 5! For AMEX users buying the phone has even better benefits. If you use an AMEX to buy it they cover your phone for 90 days. Then if you pay with a wellsfargo or Citibank card to pay for the actual bill you are covered the rest of the time.

 

 

Also of note, the AMEX protection also extends to the prepaid debt cards!

[MacinJosh]

Also of note, the AMEX protection also extends to the prepaid debt cards!

Really? I guess I should get an AMEX prepaid card.

 

Sent from my Nexus 5 using Tapatalk

 

 

[cletus]

Really? I guess I should get an AMEX prepaid card.

 

Sent from my Nexus 5 using Tapatalk

Yup. https://www.americanexpress.com/us/content/prepaid/american-express-prepaid-card/cardmember-agreement.html#purchaseProtection

[MacinJosh]

Yup. https://www.americanexpress.com/us/content/prepaid/american-express-prepaid-card/cardmember-agreement.html#purchaseProtection

I wonder if that includes Serve by American Express?

 

Sent from my Nexus 5 using Tapatalk

 

 

[cletus]

I wonder if that includes Serve by American Express?

 

Sent from my Nexus 5 using Tapatalk

It appears so. https://www.serve.com/what-you-get/

 

You will only be reimbursed for the amount charged to your eligible Card; coverage is limited up to $1,000 per occurrence; not to exceed $50,000 per Card Member account per calendar year. You may be instructed to send the purchased item to us. This product provides secondary coverage. This means it pays eligible benefits not paid by any primary insurance that you have. For full terms and conditions, see americanexpress.com/PPterms.

[kg4icg]

I use to always make sure that all my lines had insurance on them, but with the increase of tep as well as the deductible it is definitely better to not have insurance right now. I think that in the long run it is definitely better to just self insure. Over a two year period that's at least $414(11*24 for tep and a minimum of 150 deductible for a smartphone) with sprint and in my case having 3 lines thats a total of $1,242, this is just giving money away. Now if you really and truly are rough/careless when it comes to phones then I suppose it may be worth it but for me its definitely not worth it anymore.

Your math is a little off. 11x24 is 264 unless you were including the deductible. But on straight out repairs there is no deductible unless in for the 3rd time starting now. And that will only cost you about $25. Our was it $35. I have to look again. The deductible is different depending on what type of phone.

 

[travismheim]

I've had TEP since I became a Sprint customer in 2006 and have had two devices replaced under the plan. I'm pretty careful but accidents do happen and have been happy I had coverage.

 

The first time I slipped going down some stairs and watched the phone tumble down the concrete steps about 30 feet. Surprisingly only the hinge cracked slightly but I paid the $50 deductible to replace it.

 

The second time was with my Mogul. It had some weird software problem where it would chain open messages while connected to cellular network. The repair guy couldn't figure out the problem and told me to file a claim. The problem stopped a few hours after I filed but I kept the new (refurbished) phone anyway since I was told I couldn't get my money back anyway.

 

I tried to use the insurance a third time with my EVO 4G. I had slammed the phone down and the viberater came loose or something. The repair tech said he ordered parts but then next week the store was gone and I never did get it fixed.

 

It sucks paying so much for the premium and deductible especially on the higher priced stuff but I keep it for the same reason I keep full coverage on my cars. If my nexus 5 ever stopped being more than a paperweight/micro tablet I might consider dropping coverage since the device was so cheap buying it outright.

 

 

Sent from my EVO using Tapatalk

 

 

[ericdabbs]

Personally I stopped getting the TEP insurance after I upgraded from my HTC Touch Pro to the Motorola Photon 4G.  I got the TEP insurance initially with the HTC Touch Pro because it was prone to have problems.  In the 1.5 years that I had the HTC Touch Pro, I had to use it once because the phone just stopped receiving calls.  I got a refurbished HTC Touch Pro as a result.  With my Motorola Photon 4G, I stopped getting insurance even when it was still $7 and since I use a case and a screen protector, I feel more at ease that it can withstand the basic drops.  With the LG G2 and now with TEP at $11, there is no way in hell I would be getting the TEP insurance especially if I lose it and need to pay a $150 deductible.

[Shiki8]

With the LG G2 and now with TEP at $11, there is no way in hell I would be getting the TEP insurance especially if I lose it and need to pay a $150 deductible.

Agreed, plus you can get a sealed G2 on Swappa for around $300.

 

Sent from my LG-LS980 using Tapatalk 2

 

 

[themuffinman]

Your math is a little off. 11x24 is 264 unless you were including the deductible. But on straight out repairs there is no deductible unless in for the 3rd time starting now. And that will only cost you about $25. Our was it $35. I have to look again. The deductible is different depending on what type of phone.

Well 264+150 is 414 so yes, I included the deductible and I was talking about the replacement cost of a device in a situation where you have to pay the deductible.  Also for any up to date smartphone, the minimum deductible isn't less than $150. Even if we talk about repairs though, I would still be paying $264 per line which is still $792 for two years with my 3 lines.  I haven't used my insurance in..............well now that I think about it, I honestly can't remember when I used my insurance last, this is why I cancelled it.  But like I said, if you are not rough on your phones then the insurance is a waste of money for sure.

[z250kid]

you can get a gs4 on ebay (NEW) for about 400.   I think 150 dollars for a deductible is outrageous.  I'm thinking about cancelling it. Save for a triband phone.  My car insurance is only 350 more and my cars worth alot more than (Sprints) retail value of the phone.

 

 

I use to have the Blackberry Curve 8350.  Went through three of them with in two weeks.   All three had battery draining and getting extremely hot.   First time it was 50 deductible,  each time they wanted to charge me.  Needless to say i got out of my contract.  Having to be at a sprint store 3 times in two weeks. 

[anthony.spina97]

I like how Apple Care works. Pay $99 for the 2 year term, and whenever something goes wrong with the phone, go to the Apple store and tell them about it. They collect some info, say "BRB" then go to the back and bring out a like new model of your phone. Sure, the phone isn't fresh off the assembly line, but Apple's definition of "Refurbished" is brand new outer shell, brand new battery, and brand new screen. Sure the logic board isn't brand new, but why would it need to be?

 

You drop the phone and crack the screen, and you pay $49 to get a replacement (I keep hearing people on here say that it is $79 now, but I guess that is for newer Apple Care subscribers, because it is still $49 for me). Granted I have only had to get a device replaced twice (first time was my 4S, cause the lock button stopped working, then my 4S again because I had the tiniest crack that was just barely noticeable, so I replaced it cause I was trading it toward a 5). Haven't had to replace my iPhone 5 yet, but I'll probably be replacing it soon, cause I have really gone through a ton of charge cycles.

 

Personally, I think Apple Care+ was the best 100 bucks I have spent (well, the best hundred bucks I convinced my Dad to spend). They replace my 650 dollar phone for nothing when something goes wrong, and they replace it for 50 bucks if I break the screen. They make a 300% or more profit on their devices, but at least they make up for that "rip off" with their warranties.

 

-Anthony

[WiWavelength]

Sure, the phone isn't fresh off the assembly line, but Apple's definition of "Refurbished" is brand new outer shell, brand new battery, and brand new screen. Sure the logic board isn't brand new, but why would it need to be?

 

You have to think about all of the "sexts" the previous 350 lb female owner transmitted through the radio that is now held up to your ear.

 

AJ

[MacinJosh]

You have to think about all of the "sexts" the previous 350 lb female owner transmitted through the radio that is now held up to your ear.

 

AJ

TMI!

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

[The Dave]

You have to think about all of the "sexts" the previous 350 lb female owner transmitted through the radio that is now held up to your ear. AJ

And this is why I'm glad I'm not living in Kansas..