Insurance - is it worth it?

[Sarrith]

Currently I have waited to save up on upgrading my phone so I have been stuck on the original Droid 1. This weekend it kicked the bucket. I have been paying for insurance (9.99/mo) since Dec of '09. It decided to stop charging this weekend so I called verizons insurance company and they told me it would be $100 for the deductable. Now what have I been paying for exactly? this phone isn't worth $50 now and they want $100? You can get a bionic from verizon for $100 now with 2 year contract....

I talked with a buddy who has his old Droid 1 and is letting me switch to is. Waiting for "Droid fighter"/"Droid rzr maxx hd" which will prolly be out in a few months.

So is the insurance worth it? should I have canceled paying for the insurance after like 2 years?

 

[rui-no-onna]

So is the insurance worth it?

For me, it's not. I'm more likely to upgrade my phone to a new model before I ever need insurance.

 

[jerofld]

I would ask them what you would be receiving for that deductible. It won't be an OG Droid, as that has been EOL for a bit now.

 

[Parshooter]

I think insurance is good for someone that is clumsy or has the phone in high-risk situations. For me, I'm real careful with my stuff, so I don't need it. My wife on the other hand...

 

[dan330]

it all depends...

if you are the type of person that looses/damage your phone often..
then it is worth it.. because if you are within the 2 yr contract..it would cost a lot more than $100 to get the same phone again from your carrier.

but personally do not feel it is worth it! for me!!
$100 deductible + ($8/month x 24 months) = $292
you can go on craigslist and get a replacement for about $100 - $150
and I keep and old phone that i liked to be my backup.

 

[rui-no-onna]

I think insurance is good for someone that is clumsy or has the phone in high-risk situations. For me, I'm real careful with my stuff, so I don't need it. My wife on the other hand...

And it's only useful if you have an expensive high-end phone. If you've only got something like an LG Optimus One P500, it's not really worth paying insurance on the off chance it gets lost/stolen or you break it unless you're the type to lose/damage your phone twice in one year (most insurance covers 2 incidents in a consecutive 12-month period).

Checked out AT&T's website and this is what insurance will cost.

LG Phoenix, ~$60-100 (eBay)

lost/damaged within 1 year

• 1-year insurance: $7 * 12 = $84
• Deductible: $50
• Total Cost: $134

lost/damaged within 2 years

• 2-year insurance: $7 * 24 = $168
• Deductible: $50
• Total Cost: $218

HTC One X, $550 (Amazon Wireless)

lost/damaged within 1 year

• 1-year insurance: $7 * 12 = $84
• Deductible: $199
• Total Cost: $283

lost/damaged within 2 years

• 2-year insurance: $7 * 12 = $168
• Deductible: $199
• Total Cost: $367 (-> will likely be the actual market price after one year)

 

[dan330]

^^^ deductible $199!!!!!!!!!!!!!!!!!!!!

 

[Sarrith]

Well I will be getting a brand new smartphone in a few months, I occasionally drop my phone (as does everyone) but I've never broke the screen or soaked my phone.

If the phone has a faulty part in the inside that goes bad, does verizon replace it? or is that what insurance is for? where as if i didnt have the insurance then id have to buy a new phone?

 

[rui-no-onna]

If the smartphone itself is faulty and you're still under the warranty period (normally 1 year), then it's up to either Verizon or the manufacturer to replace it. Caveat, if your phone shows signs of heavy wear and tear, they might use that as grounds not to honor the warranty.

If your phone's out of warranty or you damage it accidentally or gets lost/stolen, that's where insurance kicks in.

 

[IOWA]

Since this post doesn't have much to do with Android per-se, I'm going to go ahead and move it to the lounge.

 

[TheGoatLantern]

Insurance is a rip off. Take me for example, I recently cracked the digitizer on my rezound, VZW wants me to pay $100 to send a refurb or to have it fixed. I searched locally and found a place to repair the phone for $80 total. Now why am I paying for phone insurance when it costs me that much in a deductible? RIP-OFF

 

[Rush]

So is the insurance worth it? should I have canceled paying for the insurance after like 2 years?

In your situation It wouldn't be beneficial for you to consider having insurance on that device. I have a $600 phone and my insurance deductible is $100, so in this case having insurance on my device seems to be worth it. In my opinion...not having insurance on an expensive device isn't the best decision.

 

[IOWA]

In your situation It wouldn't be beneficial for you to consider having insurance on that device. I have a $600 phone and my insurance deductible is $100, so in this case having insurance on my device seems to be worth it. In my opinion...not having insurance on an expensive device isn't the best decision.

But then again, realize the insurance isn't going to give you a new device, ever. So if I have to shop a "new" on on ebay, even a month or two later it still comes out better that way.

 

[Adauth]

Depends on how long you keep your devices, how good you take care of them, and how well you keep track of them.

 

[Sarrith]

In your situation It wouldn't be beneficial for you to consider having insurance on that device. I have a $600 phone and my insurance deductible is $100, so in this case having insurance on my device seems to be worth it. In my opinion...not having insurance on an expensive device isn't the best decision.

So I can just cancel my insurance any time on this phone correct? It was beneficial at the time I got it (day it came out), but always thought they would just send me the phone for very very cheap price.

But then again, realize the insurance isn't going to give you a new device, ever. So if I have to shop a "new" on on ebay, even a month or two later it still comes out better that way.

Idk about that, search Droid Razr Maxx new on ebay, its @ $600 and that came out back late jan early feb?

 

[dan330]

yeah.. you can cancel the insurance anytime you want..

 

[AntimonyER]

I get insurance on a phone until the price for a used replacement drops below a certain point on ebay/craigslist/swappa. Usually 6-9 months from the phone's release date.

 

[breadnatty08]

I get insurance on a phone until the price for a used replacement drops below a certain point on ebay/craigslist/swappa. Usually 6-9 months from the phone's release date.

This is wise advice. I paid insurance on both my wife and my D1s. Neither needed it and I dropped the insurance once I was close to my upgrade period.
If you have a D1, you should be at that point of an upgrade. Are you not?
If it's a clumsy user, get a case like an Otterbox. If it's a warranty/hardware issue, return it.

 

[Roze]

Accidents will always happen. You might tell yourself that you will be careful with your new phone but a slight of hand and it drops, onto a concrete floor or into the toilet.

This thread should give you an idea as to how often a phone gets dropped:

http://androidforums.com/samsung-galaxy-s/163396-dropped-galaxy-s-water.html

Also, you can never say that your phone will not be lost of stolen. My last two phones were both lost and stolen. Buying a new phone costed $500. At least with the insurance, you only pay roughly $200 with the deduction, depending on the insurance company.

I'm surprised that they still have the OD in stock to be replaced under warranty :/ I would think that they don't by now.

It's a piece of mind for most people who get warranty.

 

[Sarrith]

I get insurance on a phone until the price for a used replacement drops below a certain point on ebay/craigslist/swappa. Usually 6-9 months from the phone's release date.

Do you buy used on ebay, etc or just straight new?

This is wise advice. I paid insurance on both my wife and my D1s. Neither needed it and I dropped the insurance once I was close to my upgrade period.
If you have a D1, you should be at that point of an upgrade. Are you not?
If it's a clumsy user, get a case like an Otterbox. If it's a warranty/hardware issue, return it.

I have had an upgrade but way to many expenses came my way that took ALOT of money so I was unable to purchase a newer phone. now I've been saving back up and have more than enough. Was going to go with the DRMaxx but now that there is an upgrade shortly I'm just waiting, hell I've waited this long lol. I'm not a clumsy person with my phone, quite the opposite. Sure I've had my drops but who hasn't? case broke off around 1yr mark, then around 1yr 5 months drunk friend tackled me and I lost back part of case holding battery in. thats the only bad thing rly thats happened to it, besides the charging port finally going out.

Accidents will always happen. You might tell yourself that you will be careful with your new phone but a slight of hand and it drops, onto a concrete floor or into the toilet.

This thread should give you an idea as to how often a phone gets dropped:

http://androidforums.com/samsung-galaxy-s/163396-dropped-galaxy-s-water.html

Also, you can never say that your phone will not be lost of stolen. My last two phones were both lost and stolen. Buying a new phone costed $500. At least with the insurance, you only pay roughly $200 with the deduction, depending on the insurance company.

I'm surprised that they still have the OD in stock to be replaced under warranty :/ I would think that they don't by now.

It's a piece of mind for most people who get warranty.

I was quite surprised as well. I was kinda happy about it stop working only cuz I thought they would charge me $25 and I would get like a Droid X or X2 lol. Getting the same crap phone for $100, thats just crazy talk. I laughed at her and made sure that she knew there was no way I was doing that rediculousness.

ATM my buddy gave me his old D1 and have my stuff setup on that until the new phone comes out. I'll prolly do that insurance for about 9 months then pull it.

still wondering how everyones insurance is $5-$7 and mine was $9.99 since I quickly canceled today.

 

[Roze]

$9.99 is really expensive. That's $120/year and you've paid for 2 years. So that makes it $240 that you've paid! Plus they want you to pay $100 fee/deductable >_>;;; That's really a lot.

My insurance is $120 for 2 years and $100 fee. If you have a fall back phone, I don't think you need insurance as much. Insurance is only good if you are left with no devices and have to pay $300 (used) or $500 (new) phone. So if anything happens within that 2 years, my new phone will cost me $220 in total.

 

[dan330]

there are 3rd party insurance.. that are cheaper and better

 

[AntimonyER]

there are 3rd party insurance.. that are cheaper and better

Yes, here is a quick summary.

If you plan on keeping the phone for the entire contract period, and are not very accident prone, but are terrified of being stuck without a phone, and insurance is a must, a third party plan (such as squaretrade) is worth a look. Their deductible and overall premium is a lot less than Verizon. But also their total pay out is less as well. Basically you can get between 2-4 repairs, or one new phone with their insurance, and then your limit is reached.

If you are like me, and only want insurance for the time that a replacement is prohibitively expensive, or if you are extremely accident prone, Verizon's insurance may be better. You can cancel it at any time, and the limit on payout is much higher. If you are like me and have multiple lines, you can also cancel the insurance once you have a line that is eligible for an upgrade.

Finally your last option is to keep an old phone lying around for a back-up as your insurance.

I always sell my old phone, since I keep it in mint condition, and it pays for whichever new phone I want to get.

 

[AntimonyER]

Do you buy used on ebay, etc or just straight new?

Used. eBay protects their buyers pretty well, and if you look for someone with high percentage, you won't have any trouble in my experience. Ask for the ESN/IMEI number via private message prior to bidding (or if the seller won't agree to that, prior to paying at the very least), and call Verizon to check its clean. Just make sure to read the description very carefully. If it seems too good to be true, it may be.

 

[SUroot]

Having an excess on a phones insurance policy makes it less worth while.

I pay