Insurance on X. Worth it? Yes, no, opinions...

[hipnosis]

I've been wrestling with this question myself. The X will be my first smartphone, and while I've never needed insurance for my little flip phones, this is obviously a much bigger investment. I've got awhile to go before I receive my X, so I've just been trying to do some research on the options, and the squaretrade and home owner's suggestions are very much appreciated! Thanks!

 

[mysterygirl]

I debated it and decided against. Here's what I'm doing instead:

I plan to have my phone for around 20 months. At $8 a month, insurance would cost me a total of $160 for that 20 month period of time. Plus, if I ever actually used it, I'd have to pay another $90 deductible, so the total possible cost is $250 for 20 months of insurance. I've decided to put that $250 into my savings account instead. If I don't break or lose my phone in that 20 month period, well I have $250 extra (plus some interest) squirreled away. If I do, then I have $250 already put away toward the cost of a replacement phone.

 

[RichSz]

I'm normally not an insurance person because every time I've invested in the either the thing never broke or the company went out of business.

I got to thinking about this one. I plan on messing around with writing apps and rooting / tweaking. If I manage to brick my phone, I can always call Verizon, say I lost it and cough up with $80 (or whatever it is). Better than being out $600. That piece of mind opens me up to messing around with it a bit more and taking some chances I normally wouldn't take. Besides pulling out that damn tab when I first got it will only cost me $80 (or whatever) at worst.

The final factor was coming from AT&T, Verizon is cheaper so even with the insurance, I save money. Win / win.

 

[sorka]

Insurance is a suckers bet. If it weren't there wouldn't be insurance companies. On average, they make more money than they pay out.

That said, if you know your'e a clutz and have a history of losing, dropping, breaking expensive cell phones, then it's a good idea as long as the math computed with your history/frequency works out.

 

[tbAF]

My take... First year is MFG warranty. Use your old phone (if it breaks) during the repair (you did keep an old phone right??).

Year 2, you only need about 6 to 9 months months before you qualify for an upgrade. Assuming you do the upgrade your exposure is 6 to 9 months. Given how quickly this technology and phones change, these will be on ebay at less than half price of today's new price.

So unless you are prone to damaging equipment, the insurance generally does not pay out in your favor. All the money saved on little insurance policies here and there can eventually be pooled for the device that *does* fail out of warranty or negligence. And when you have policies, assuming you can remember you've bought them, they've often expired on the specific device before you can collect.

Read up on self-insurance a bit and save some money.

My .02 worth...

 

[cygnusloop]

Insurance is a suckers bet. If it weren't there wouldn't be insurance companies. On average, they make more money than they pay out.

That said, if you know your'e a clutz and have a history of losing, dropping, breaking expensive cell phones, then it's a good idea as long as the math computed with your history/frequency works out.

You make a fair point, I suppose, but it's just not quite that simple. For example, I (nor most other people) would never be without insurance on a new car or on a home. You may never need it, but if something catastrophic happens there is no way for most people to cover that kind of expense.

My Grandfather used to tell me: "If you can afford to replace it, don't insure it. If you can't, get insurance." So, by that reasoning, I guess it just depends on your ability to shell out $600 for a new phone.

 

[slayer5]

I do not get insurance. It cost me $154 for my Incredible. I have the X on order and that will cost $156 or so. we have a corporate account so we get 34 upgrades every two years. Does not pay for me to get insurance.

 

[Member112085]

Oh and unless it has changed, with asurion you are only allowed one claim on that phone? Someone has to verify, I'm not totally sure.

It's two claims within a 12 month period.

 

[Member112085]

I agree that adding to your HO policy, when available, is wise. However, I believe - and someone correct me if I'm wrong - that you can purchase the extended warranty ONLY portion of the Total Equipment Coverage from Verizon for $2 a month. So, $6 a year on my homeowners policy, plus $24 a year for extended warranty would give the same coverage (better, actually, since you just get the $$ from your homeowners, not a refurb device). No deductible. You will, in many cases, be limited to $500 and if the price of the phone goes over that (which most do now), you have to submit proof of replacement cost for reimbursement. See excerpt below from the actual rider on an Erie HO policy:

Loss settlement will be on a replacement cost basis. This
means we will not deduct for depreciation. In no event
will settlement exceed the amount necessary to repair or
replace the damaged property.
When the replacement cost for the entire loss under this
coverage exceeds $500, we will pay no more than the
actual cash value of the damage until the actual repair or
replacement is completed.
You may make an initial claim for loss on an actual cash
basis.

1. You may then make claim, in accordance with this
endorsement, for the difference between the actual cash
value and the replacement cost within 6 months of the
later of:
a. The last date you received a payment for actual
cash value; or
b. The date of entry of a final order of a court of
competent jurisdiction declaring your right to full
replacement value.

 

[sorka]

You make a fair point, I suppose, but it's just not quite that simple. For example, I (nor most other people) would never be without insurance on a new car or on a home. You may never need it, but if something catastrophic happens there is no way for most people to cover that kind of expense.

My Grandfather used to tell me: "If you can afford to replace it, don't insure it. If you can't, get insurance." So, by that reasoning, I guess it just depends on your ability to shell out $600 for a new phone.

Homes and cars are different. Homes are so cheap to insure it's almost free. Statistically, the odds of you needing it way in favor of the insurance. My home costs about 0.20% per year of the homes value to insure yet if you don't have insurance and it burns down you're screwed.

Collision and comp on vehicles is more straight forward but even then, I always get comp and collision on new cars.

Auto insurance companies over all make money but there are demographics and categories that they lose money on. Comp and collision on new cars are often slight money losers for insurance companies. What they're betting on is that you're going to keep the full coverage after 3 year even though the residual on the vehicle is at 51% yet your premium didn't decline 49% along with the value of the car.

We just stopped insuring our 2004 Dodge Durango several years ago. It costs us the same for comp and collision as it did when we first bought but the car is worth 1/4 of what it was, so essentially if we kept paying comp and collision, we'd be paying 4 times as much per vehicle value as we did when we bought it. Once the vehicle falls below a certain value, the insurance company will more likely total it rather than repair it and pay you for the value yet you just paid the same premium for your 6 year old car as you did when it was new.

 

[Jim Dawson]

I bought the Squaretrade extended warranty on my Droid and added it to my "personal articles" rider on my home owners policy. Squaretrade will cover failure and State Farm will cover loss or damage. Squaretrade may have changed since I bought my Droid policy but it was a good deal then.

 

[Brandysmom]

I am also debating about insurance. In the past I've not bothered with it. I'm not one to lose or break things but I also dont want to cough up $600 to buy a new one, nor do I particularly want to go back to my crappy blackberry storm.

However, what is this "New Every Two" thing? I have always signed up for it, but I've NEVER had to wait two years to get a new phone. I've always been able to get a new phone after one year, for the same price that the people waiting two years are paying. I got an NV2, and a year later got the BB Storm. That proved so horrible that Verizon let me upgrade to this Droid X after 10 months. I cant imagine keeping a phone for two years.

 

[nynvolt]

I think it may be worth it for some people. Personally I have never bought insurance for a phone. I don't want to jinx myself but I've never broke one myself. I had one covered under factory warranty need replacement.

I have a friend who has dropped hers in the toilet and is pretty hard on her phones in general. For her, insurance would be worth it. I suppose if it would put a real strain to pay to replace it then it may be worth the piece of mind. Seems a little costly to me to pay $8/month AND to also have a deductible. I also keep my previous phones for back up, just in case.

 

[mas90guru]

The issue also comes down to whether you want to front $530 for a new Droid X (Walmart retail) and wait for reimbursement.

 

[sund0wn]

I am also debating about insurance. In the past I've not bothered with it. I'm not one to lose or break things but I also dont want to cough up $600 to buy a new one, nor do I particularly want to go back to my crappy blackberry storm.

However, what is this "New Every Two" thing? I have always signed up for it, but I've NEVER had to wait two years to get a new phone. I've always been able to get a new phone after one year, for the same price that the people waiting two years are paying. I got an NV2, and a year later got the BB Storm. That proved so horrible that Verizon let me upgrade to this Droid X after 10 months. I cant imagine keeping a phone for two years.

every verizon customer (not counting secondary family share lines) receives a credit toward a new phone at 20 months. if you do happen to wait 20 months, you will get a credit of $50

 

[deadinside]

It seems like if you have the insurance
it is a waste of money because you probably will never use it

but of course if you dont, then sh**t happens and you are like
"Damn, I wish i had it*

But i agree with shamrock's post above me

Yeah, I have done that with phones

Carried insurance on all my phones, until about 05 when I had a phone that literally was falling apart. They wanted a $50 deductible, then told me that my phone was no longer sold and told me what the replacement was going to be. The replacement was weaker than my previous phone that at the time had a 1.3 mp camera and the other did not.

When I realized I could renew my contract with a better phone for $100 I went with that and declined insurance. 6 months later, I accidentally left my phone in my car while visiting friends and did not lock my door. Came out to find my car door wide open and the phone was gone.

IMO a phone with a 4.3 in glass screen, insurance is always a safe bet. Though along with it, a decent protector will help ensure that you are not going back to Verizon within 90 days with a phone that got broke in a freak accident too.

 

[sund0wn]

i think it's worth it to pay the $8. the nice thing about the $7.99 insurance, is that it also extends your warranty for a second year. if your phone breaks after the first year, you are SOL. even if you arent hard on your phone, it's worth it to be protected against theft, loss, and failure after the first year.
i dont ever break my phones either, but the peace of mind is nice.

 

[tbert]

Statistically it's not worth it. That's how insurance companies stay in business. But if you do get it, it might be better cancel it in the 2nd year. By then you'll be craving the next latest and greatest. No point in paying extra to get a phone you'll replace in a couple of months. Also, most hardware issues pop up in the first couple of months.

 

[sund0wn]

Statistically it's not worth it. That's how insurance companies stay in business. But if you do get it, it might be better cancel it in the 2nd year. By then you'll be craving the next latest and greatest. No point in paying extra to get a phone you'll replace in a couple of months. Also, most hardware issues pop up in the first couple of months.

only better to cancel it if you're eligible for annual upgrade, which many people are not.

 

[john0821]

Get it.

 

[bsutton1]

After my Eris got water damage earlier this summer, I decided to get insurance on the X. Although I'm being careful with it, if something does happen to it, I don't be paying an arm and leg to get another one.

 

[kwest12]

Ok knowledgeable Droid X folks, I need some help. I've been dragging my feet on buying insurance and my 30 day window is gonna creep up on me if I'm not careful.

Here are the coverage plans available:
Calling Features: Total Equipment Coverage

I personally don't see a real difference between the $8/month Total coverage policy and the $6/month Asurion policy. Please enlighten me.

I normally encourage discussion and sharing of different interpretations, but in this case if we could keep it to the cold hard facts I think that would be best.

Btw the reason I started a new thread about this is because the other ones I found in AFs are extremely long and convoluted. I'm really hoping to make this one very concise. Thanks in advance guys!

 

[kentl901]

One thing I believe is different is the $8 plan includes an extended warranty against manufacture defect.

The $6 plan only covers only against, theft, water damage, and stuff you'd expect to be covered by insurance.

 

[stanz0r]

Insurance is pointless...until you need it.

On the other hand, at $8 a month for 12 months you're spending $96 a year. Assuming you file a claim in that time span that's another $89. I don't know about everyone else, but if I file a claim once in that year that's $185 and i'm getting a refurbished phone from Asurion. $185 will get a nice phone on ebay or craigslist. Add another $96 for the 2nd year and you're looking at $192 just for insurance + any claims @ $89 a pop.

 

[ugh what]

Yep, I don't bother getting the extended warranty but I do get the basic insurance for $6 or whatever it is. I'm not willing to have to use an old phone for an extended period, and I'm not willing to drop $600 if I break/lose my phone, and I'm not really one for buying used. It's worth it to me just to know I'm covered. I usually cancel when I get sick of my phone and would rather upgrade than replace.