quote:
Originally posted by Adeptus
quote:
Originally posted by NiteMare
why pay full price when the insurance can replace it for a small decuctable
I am afraid I have to agree with Dane on this one. Don't take offense at this, I'm glad the phone replacement insurance has provided you with a job -- however, it is not a good product for the consumer. Here's why:
When I have been offered this sort of insurance in past, the cost has varied between $4 and $8 per month. If we take the average of that ($6) and multiply by 12, it means additional $72 spent over the course of one year.
Virtually all phones in U.S. are sold heavily subsidized, with a service contract. For example, a $250 phone could cost $99, as long as you sign a contract for a year of service from a particular carrier. Less expensive phones may be free after the contract subsidy.
After the contract is over, you can do it again and get a new subsidized phone -- and you probably will want to do that anyway, because by then phones will be smaller, nicer and have more features. At that point, a new phone will cost you practically the same as the amount you would have paid in insurance premiums and deductible, plus you get an upgrade.
The only situation where the insurance might pay off is if you manage to destroy your phone early on in the contract term, in which case you may have to pay full price for a replacement. I think the chance of that happening is small and it's well worth taking the risk yourself and keeping your money.
Finally, I don't know about Verizon and Asurion, but it seems that in most cases, the insurance replacements are repaired / refurbished phones, often with serious problems. I've heard quite a few horror stories about that.
So yeah. It's not worth it.
But if you've got a 2 year contract, at the end of the two years your into it for an extra $150, Say I want to just keep going with out a contract, but I want a new phone? Oops.... I ran over my old phone with my car... Damn. And at that point they will have a hard time getting me the same phone. Per the contract between the insurance provider and myself, They have to provide a new phone of equal or better abilities which would be a nice phone even in new standards. So I can get a new phone for the $50 deductible and I dont have to renew my contract.
In my eyes, it's a sound investment, I've had it happen once before and it worked out ok, I didnt hold out for the best phone but It got me a new phone fast and I didnt have to futz with a new contract (I've replaced my phone and contract since then).
