Owners Smash iPhones To Get Upgrades, Says Insurance Company

markass530 writes "An iPhone insurance carrier says that four in six claims are suspicious, and is worse when a new model appears on the market. 'Supercover Insurance is alleging that many iPhone owners are deliberately smashing their devices and filing false claims in order to upgrade to the latest model. The gadget insurance company told Sky News Sunday that it saw a 50-percent rise in claims during the month Apple launched the latest version, the iPhone 3GS.'"

Comments

Re:Typical insurance company

[DaveV1.0]

The problem with your post, which is seriously overrated and a bit off topic, is that the insurance company is not denying the claims. The insurance company has looked at the number of claims and has seen something suspicious, specifically a 50% increase in claims one month after the release of the new iPhone. The insurance company also noted that many of those phones came in with extreme amounts of damage unlikely to be caused by a simple accident. Some showed evidence of being deliberately smashed using a hammer.

The insurance company priced their product according to normal wear and damage rates. When the new iPhone came out, there appears to have been a large amount of insurance fraud to get the newest model, something that doesn't happen with regular cell phones. Basically, the insurance company didn't think there would be that many assholes using iPhones.

The insurance company shouldn't have to pay out on phones that were deliberately damaged. That actually increases the cost of insurance and is why insurance companies don't pay out easily. Your own suggestion is that they should not fight insurance fraud but rather spread the cost to everyone by raising their rates.

Oh, and I did see what you did there. You attacked all insurance companies with no evidence, then said it was the insurance companies' fault that assholes were committing insurance fraud. You used a genetic fallacy.