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Ask Slashdot: Best Protection Plan For Your Phone?
First time accepted submitter nastav writes "Now that I'm eagerly awaiting the delivery of my new shiny iPhone 5, I'm faced with a dilemma — SquareTrade, Applecare Plus, or some other insurance option? I have used SquareTrade in the past for my iPhone 3GS and iPhone 4 (I skipped iPhone 4S). It provided Accidental Damage Handling (ADH) for the iPhone before Apple introduced its own version of ADH. I've had the opportunity to file claims with SquareTrade multiple times, and they handled it quickly and professionally each time. Now that there is a product from Apple itself, I'm not sure which one to get. They are priced similarly (~$100 for a two-year plan, $50 deductible for each ADH incident) Apple limits the number of ADH claims to two, whereas SquareTrade (AFAIK) limits the number of claims to the 'value of the product,' which translates to approx. 600 USD in coverage (or about 4 ADH claims). I've tried reading many comparison articles on the internet without definitive answers. I'm hoping that the tech-savvy folks on Slashdot would help out with a discussion on pros and cons of each, and perhaps add other options into the mix."
Quite simply, I wouldn't spend $100 + $50 insuring a $600 product. Especially one that depreciates as fast as a cell phone. Perhaps taking the 1 year agreement with your cell plan provider would work out better. It's usually not that much more, and you play the odds that you can make it out 1 year without doing something serious to your current phone.
AppleCare & AppleCare + are extended warranties NOT insurance. You must be able to bring the old iPhone in for the extended warranty plan. Theft & loss are NOT covered by an extended warranty plan. It is worth noting that AppleCare covers everything that comes in the box & possibly other iPhone related items by Apple (like a dock) that are purchased on the same receipt. Ask at time of purchase. The extended warranty must be purchased at the time that the iPhone is purchased. Otherwise, the iPhone must be checked out by Apple staff in order to qualify for the plan For loss or theft of an iPhone or any smartphone, review your homeowner's or renter's policy or consider getting a renter's policy from your auto insurer. The rates are usually good, Multi-plan discounts will apply Cheers !
Cheers !
The AC has a fair point. Insurance will, collectively, cost more than not insuring (that's how they pay for admin and profits). Consider your use. Are you a higher risk than average (but aren't being charged as such) and can you afford to comfortably replace the device if you don't insure it? If you are more likely to break the phone than average or can't afford to replace the device then insurance is probably worth getting; if not, then you're likely to be better off without it. My household insurance included phone cover (I didn't buy it for that reason) so my phone is insured; however I wouldn't have bought a separate policy if it wasn't.
If insurance on any consumer electronic device was a good deal for the consumer, they wouldn't sell. Trust that actuaries understand the probabilities of the thing better than you ever will and it's priced so that it's a good deal for them. There is something like a 99% chance you will end up losing money in the long term if you repeatedly buy these bs "protection" plans. Be smart and save your money.
My homeowners insurance charges something like $10 per YEAR for computer insurance that also includes... smartphones. With a $50 deductible and $1000 per incident. My some dropped my wife's Samsung Somethingorother in the pool and the insurance paid out ~$500 for a new phone. Way cheaper than any other plan I have ever seen for phones. It also covers laptops, and all devices in the house are covered under the single $10 payment.