Help DNA - thoughts about insurance options

[victek]

When I bought the DNA I opted for the extended warranty so I'd at least have that through the two year contract period. I still have the option to change/add insurance though and I'm wondering what choices you've made? Is "total coverage", which I think costs $7/month, worth it?

 

[TrueMetalGeek]

I carry it on my smart phones.
The only bad thing is the deductable was only $100 and I heard it went up to $160 with assurian which Verizon uses.

But it's nice to know if you break it, ruin it, even if it gets stolen you're out $160 not $599 to get another one.

And usually they one day ship the replacements. Which are usually refirbs but they usually look like brand new when you get them.

My daughter broke her thunderbolt. I thought we had insurance on her line but we didn't.
But since I found out the deductable went up, no sense in it since I can go buy a used thunderbolt for not much over $100 now.

If it's a new phone I say yes. If it's a year or more old you will start to find used ones for no more than $200 usually.

 

[tommy_ed]

It's still $100 for all smartphones except iPhones, which is $150. I have a customer on the phone with them right now ordering a replacement Droid Razr

 

[Ibrick]

It's still $100 for all smartphones except iPhones, which is $150. I have a customer on the phone with them right now ordering a replacement Droid Razr

I just got off the phone with VZ and they did verify it was $160 for iPhones and still $99 for all other VZ phones as well.

I hate cases and paid full retail to keep the unlimited data so insurance is obviously a must. In any event if Assurion did change the terms they would need to send out a disclosure for the new terms and give people a chance to opt out. Can't just change something like that without notification.

To the OP, insurance is one of those things thats not worth it, until you need it. I say add it. The peace of mind is worth $7 a month to me.

 

[PsychDoc]

Like most such things, it's hard to put a price tag on 'piece of mind.' However, as a financial decision I can tell you that it's a complete rip-off. Like extended car warranties, the loss ratios on these products (from the POV of the insurance companies offering them) is often only 10%-20% and always under 50%, so in a best case scenario you are really only getting the benefit of anywhere from 10 to 50 cents on your dollar. However, if that piece of mind is something you really can't live without then go right ahead. I'd rather self-insure knowing that in the long run I'll be way ahead of the game. Please be aware that the above applies not only to phones, it applies to cars, appliances....essentially anything that carries the option of an extended warranty. Ever wonder why sales people push them so hard at Best Buy, PC Richards, car dealerships, etc? They may make 2%-3% on the sale of the underlying item while they make over 50% for the extended "protection." In short it's a rip-off. But if you just gotta have it you gotta have it I guess.

 

[Ibrick]

$7/month + $99 vs $600 for a replacement.

I agree most extended warranties are BS, but if I drop this phone and crack the screen, or someone decides they like it and don't wanna pay for one, or any number of other scenarios which leave me with a broken, non-functional, or missing device, it seems like a pretty decent deal for a replacement.

 

[TrueMetalGeek]

They indeed make money on the sale of extended warranties.

And over a few years they are making pretty good money especially when we don't always use the warranty through the life of a phone.

The thing though is that most people who buy a phone on contract for $199 don't have $600 sitting somewhere to replace it and would rather pay $7/mo to be assured they can afford the replacement of just $100 when the time comes.