Cell phone insurance

[CJ2008]

DH just got a BB Bold (he's loving it, except for the battery life...)

We're thinking of getting insurance/protection for it. Do you guys normally do that and do you just get the one that your cell phone company offers? We're with ATT and it's $4.99/month ($59.8 plus a $125 deductible. So it's pretty steep, but they do cover liquid damage, etc.

Thanks!

 

[Shoopy]

I thought cell phone insurance was one of the silliest things ever, especially at $4.99 a month for each phone (I pay for 4 lines).

That was until my mom dropped her cell in the toilet, my brother left his on an airplane, and the other one somehow managed to blow his up.

So we have insurance. On all phones.

What I don''t like about it is that I pay $20 a month and have been for the past year. So that''s $240 so far and yet I still have to pay $50 to get a replacement phone

 

[MsP]

What are the details on the $125? Is it any time you use the protection plan or is it only if it''s water damage or theft? When you pay that, do you get a refurbished phone?

I have $7/month insurance on my cellphone and only have to pay the deductible if it''s for water damage or theft but nothing if it''s just not working or acting funny. I''ve used it many, many times over the years I''ve had it but in all honesty, I would probably be better off without it. You get refurbished phones that oftentimes have problems... so you end up going through 2 or 3 refurbs to get a "good" one. And if I were paying the deductible I could have gone to ebay and purchased a lightly used phone. I mean, $7x24months(typical contract period) + the $150 deductible = $318. I can DEFINITELY get a used phone for that. In fact, I could probably replace the phone for that.

It all depends on how often you''d use it. Have you been rough on past phones?

 

[D&T]

no insurance for us, however usually comes with a manufacturer''s warranty already for a little while not sure how long, but we were able to get two new phones after some issues with our blackberries and didn''t have insurance just used the manufacturers warranty is all. I feel like its just another way for the cell phone companies to profit with insurances

. Why don''t you just put $5/monthl a way plus $125 for your own "self insurance" that way if it comes time to get a new one you have more options of phone instead of having to be restricted on the same phone?

 

[kenny]

No.

What''ll they think of next?

 

[charbie]

Date: 11/2/2009 12:52:16 PM
Author: D&T
no insurance for us, however usually comes with a manufacturer''s warranty already for a little while not sure how long, but we were able to get two new phones after some issues with our blackberries and didn''t have insurance just used the manufacturers warranty is all. I feel like its just another way for the cell phone companies to profit with insurances

. Why don''t you just put $5/monthl a way plus $125 for your own ''self insurance'' that way if it comes time to get a new one you have more options of phone instead of having to be restricted on the same phone?

that''s a good idea! make sure you are aware of any blackberry warranties out there as well. in two years, ive gone through 3 blackberry pearls that get lots and lots of use, but its annoying because i get no real explanation as to why my phone turns into a paperweight every few months.

 

[neatfreak]

They sell insurance because they expect to make a profit on it.

For something this small and relatively cheap I would rather deposit that $5 into an account just in case-then you have a stash if something happens but if nothing does you''ve got a stash for something else! Unless your DH has a history of destroying phones personally I would pass on it.

 

[CJ2008]

You all make good points about why NOT to have insurance...I guess I keep thinking about forking over hundreds of dollars for a new Bold, rather than $175? Because until you're eligible for an upgrade (which in my case would be June 2011) I would have to pay full retail price for a replacement.

Although I realize that after the first year, it's not just $184 (the $125 plus the 12 months of $4.99) but $184 plus however many months you've been paying the $4.99 too...

Am I missing something still?

I like the idea of setting $ aside, it's just unlikely I would do it...

 

[neatfreak]

Date: 11/2/2009 3:50:10 PM
Author: CJ2008
You all make good points about why NOT to have insurance...I guess I keep thinking about forking over hundreds of dollars for a new Bold, rather than $175? Because until you're eligible for an upgrade (which in my case would be June 2011) I would have to pay full retail price for a replacement.


Although I realize that after the first year, it's not just $175 but $175 plus however many months you've been paying the $4.99 too...


Am I missing something still?


I like the idea of setting $ aside, it's just unlikely I would do it...

You're also forgetting the probability of actually needing the insurance.

But if it makes you feel better by all means get it. Just know that it's a ripoff.

Also, make sure you read the fine print. They usually give you a refurb if you need a new one.

 

[MustangGal]

I''ve never bought the insurance, but I''ve also never killed a phone. My little sister has been through MANY phones, and doesn''t have insurance either, she usually just has to activate one of the old spares leftover when someone else in the family got an upgrade.

 

[Hera]

I have an expensive smartphone and I carry insurance on it. I have used it several times because I have dropped a phone in the bay after 2 days, left it at a mall a couple of times, had dysfunctions, dropped it in the toilet. You name it,I''ve done it. That being said, I would not insure the more cheap phones because I can just go on eBay and get a replacement.

 

[Haven]

We don''t buy insurance for our phones.
DH bought a Blackberry on eBay last year when he decided he wanted one because we weren''t up for our upgrade credits, yet. It was brand new, and we just brought it into Sprint and they activated it for him.
Maybe that''s another option, in case you decide against the insurance.

 

[Elmorton]

We pretty much never buy insurance plans on anything - but we did with the phones, because the cost of replacing a phone is downright ridiculous. We paid $25 for each one, but it would cost $450 to replace...yeah the deductible/monthly cost probably ends up evening out even if you do lose the phone, and of course D&T''s plan to set aside $5 a mo is probably better, but frankly, for us, it''s the peace of mind that we wouldn''t have to fork over $450 in addition to the stress of being momentarily without a phone.

 

[that_someone_special]

Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.

It's worth it. FI just had to get a new BB because his trackball was messed up... $50 for a brand new phone. That was a month ago, and in less than 2 weeks he is upgrading to his (long awaited) iphone. It just makes sense unless you never use it- but then what is your piece of mind worth?

I am not saying to scam the company though. There is just other ways around it.

ETA and a lot of times you can make 2 claims within that specific contract too....

 

[neatfreak]

Date: 11/2/2009 7:45:33 PM
Author: swedish bean
Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.


It''s worth it. FI just had to get a new BB because his trackball was messed up... $50 for a brand new phone. That was a month ago, and in less than 2 weeks he is upgrading to his (long awaited) iphone. It just makes sense unless you never use it- but then what is your piece of mind worth?


I am not saying to scam the company though. There is just other ways around it.

If you aren''t saying scam the company what are you saying? Sounds like insurance fraud to me if you are calling in a claim just because you want to upgrade.

 

[Italiahaircolor]

I have an iPhone...so we can''t get insurance...we bought Applecare. The deciding factor was the fact that replacing the phone was like $500.00 bucks while Applecare is only around $100.00 or so (if memory serves). While if I lost my phone or if it were stolen I''d be forced to buy a new one...okay...but batteries and other "ooppses" made me very sure this was a wise investment.

I use my phone everday...it would be silly not to protect it!

 

[CJ2008]

Thanks guys for all the feedback...

I''m not hard on my phones, and I don''t recall ever losing one.

I did a search for a different company - for $50 and no deductible they replace in case of damage or theft - but there''s a long list of the damage they don''t cover - no liquids, no scratching, etc. So it''s a lot cheaper than AT&T but they also cover a lot less.

But - yes, in all cases, they are allowed to give you a refurbished phone, or even give you a different model/type. So it''s definitely not foolproof.

This is my first smartphone, so it''s the most expensive phone I''ve had. I hate laying out the $ but for some reason I feel like I won''t rest easy unless I have some type of insurance. I just did a quick search on ebay and the Bolds are going for ~$200 to $400...so if I can''t shake this feeling of needing some type of insurance, maybe I''ll just insure for the first year...

I''m glad to see at least some people do insure their phones, makes me feel better about all the years I insured my phones! haha

 

[Diamond*Dana]

We have insurance on DH''s phone, which is just a basic LG, but he has dropped 2 phones in the lake!

I do not have insurance on my BlackBerry.

 

[that_someone_special]

Date: 11/2/2009 7:49:11 PM
Author: neatfreak

Date: 11/2/2009 7:45:33 PM

Author: swedish bean

Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.



It''s worth it. FI just had to get a new BB because his trackball was messed up... $50 for a brand new phone. That was a month ago, and in less than 2 weeks he is upgrading to his (long awaited) iphone. It just makes sense unless you never use it- but then what is your piece of mind worth?



I am not saying to scam the company though. There is just other ways around it.

If you aren''t saying scam the company what are you saying? Sounds like insurance fraud to me if you are calling in a claim just because you want to upgrade.

Call it what you will. I''m not going to debate it with you.

You don''t know half of the scamming that happens within the own company- getting a product which you have been paying for is not a scam. You do need to send your phone in if you have it and it is not lost, it''s not like you gain a whole phone.

The iphone does not have a plan however, and there might be others that don''t allow them. I think it''s a good idea they didn''t do it for the iphone if you see what people do to them.... it makes people take care of their phone!

 

[elle_chris]

I don''t. But I also had a mishap with my Iphone back in August. Phone died due to water damage one year into my contract. The price for an "early" upgrade was close to 300 plus another 2 year contract. I decided to get rid of the data plan and went back to using one of our ancient phones.

I found out that even if I did have insurance, it would not have covered water damage. At least that''s what the AT&T rep told me.

 

[Londongirl1]

My FI has lost so many of his cell phones and it drives me nuts!! He went away last weekend and lost his phone again.

I've never had or needed cell phone insurance but my FI NEEDS it. He's paying $7.00 per month on his new Blackberry

 

[neatfreak]

Date: 11/3/2009 1:53:36 AM
Author: swedish bean

Date: 11/2/2009 7:49:11 PM

Author: neatfreak

Date: 11/2/2009 7:45:33 PM


Author: swedish bean


Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.




It''s worth it. FI just had to get a new BB because his trackball was messed up... $50 for a brand new phone. That was a month ago, and in less than 2 weeks he is upgrading to his (long awaited) iphone. It just makes sense unless you never use it- but then what is your piece of mind worth?




I am not saying to scam the company though. There is just other ways around it.

If you aren''t saying scam the company what are you saying? Sounds like insurance fraud to me if you are calling in a claim just because you want to upgrade.

Call it what you will. I''m not going to debate it with you.


You don''t know half of the scamming that happens within the own company- getting a product which you have been paying for is not a scam. You do need to send your phone in if you have it and it is not lost, it''s not like you gain a whole phone.


The iphone does not have a plan however, and there might be others that don''t allow them. I think it''s a good idea they didn''t do it for the iphone if you see what people do to them.... it makes people take care of their phone!

You are paying for the insurance-not the new phone. That IS insurance fraud FYI.

 

[Italiahaircolor]

I have to agree with Neatfreak here. Getting a new phone via insurance because you "want one" while your other phone is still fine and in working condition is theft.

Granted you''ve paid your monthly fee for the service, I think that just because you can doesn''t mean you should.

Is it a big huge deal? Probably not. But it''s still not something to recommend.

 

[lilyfoot]

Date: 11/2/2009 7:45:33 PM
Author: swedish bean
Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.

I am not saying to scam the company though. There is just other ways around it.

ETA and a lot of times you can make 2 claims within that specific contract too....

Following this logic, everything you purchase that''s covered by a warranty or insurance, you''re "entitled" to a replacement. Want a new car? Crash your old one. Want a new diamond ring? "Lose" or "break" your old one.

This is the definition of a scam, not a "way around it". Insurance fraud is illegal, and you can be arrested for it.

Insurance is there to protect you IN CASE something happens, not for you to MAKE something happen.

 

[that_someone_special]

Date: 11/3/2009 11:01:51 AM
Author: neatfreak

Date: 11/3/2009 1:53:36 AM

Author: swedish bean

Date: 11/2/2009 7:49:11 PM


Author: neatfreak

Date: 11/2/2009 7:45:33 PM



Author: swedish bean



Just a note. You can call in your claim when you are about to upgrade- pay the $50 for a new phone, sell it for way more than that and make back your money.





It''s worth it. FI just had to get a new BB because his trackball was messed up... $50 for a brand new phone. That was a month ago, and in less than 2 weeks he is upgrading to his (long awaited) iphone. It just makes sense unless you never use it- but then what is your piece of mind worth?





I am not saying to scam the company though. There is just other ways around it.

If you aren''t saying scam the company what are you saying? Sounds like insurance fraud to me if you are calling in a claim just because you want to upgrade.

Call it what you will. I''m not going to debate it with you.



You don''t know half of the scamming that happens within the own company- getting a product which you have been paying for is not a scam. You do need to send your phone in if you have it and it is not lost, it''s not like you gain a whole phone.



The iphone does not have a plan however, and there might be others that don''t allow them. I think it''s a good idea they didn''t do it for the iphone if you see what people do to them.... it makes people take care of their phone!

You are paying for the insurance-not the new phone. That IS insurance fraud FYI.

I didn''t say that I did it. I have an iPhone. I couldn''t even if I wanted to. It''s just a loop hole... and if the company has a problem with it, they can fix it. Do you actually know how much cellphone companies gouge you on "the extra''s"? They aren''t hurting. (specifically AT&T).

There are actually bigger problems within the company than what I described FYI..... it''s actually easier for employee fraud than you would imagine.

We HAVE used the insurance like I said, when his BB was broken. And I do think insurance is worth it on smart phones. A lot of people don''t know this, but you can actually buy GO phones in a pinch and use your sim card with it and you wont be charged extra. I bought a $30 phone that I used between my iphone 3g and 3g s for a week, otherwise I would not have had any phone. SO, point being, if you have a cheaper phone and ruin it, and are due for an upgrade soon, you can buy a GO phone and not effect your upgrade. (not sure if that works for other companies though)

If that makes sense.