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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."
Take good care of your phone and be careful when handling it!
If you're naive enough to spend a fortune on a status symbol, you should easily be able to afford a replacement.
$199 if you bring them a damaged iphone that was your fault and they will replace it on the spot.
I'll take the possible risk of paying some money over paying up front in case of an accident any day
To me, this sounds like a decision of "Should I use a professional service that worked for me in the past or go with Apple?". Why ask this question when you are happy with the current service, I do not even know. Sounds a tiny bit like the Apple fanboy inside of you is revolting.
The insurance is roughly 1/3 the cost of a replacement. Do you really think the odds of loss are so high that you need to pay that premium?
Unless you have catastrophic damage where you drop your phone into a running industrial shredder, repair it yourself. My phone recently had a shattered digitizer. Repair estimate was $150, similar to what your first claim essentially would cost. An OE digitizer was $12 on Amazon.
Provide a chair and sit next to it while you use it.
Those old wall mount phones never got dropped, and very rarely got wet.
and it's underwriters.
My father always taught me: Never take insurance for things you can pay for yourself.
On general you pay more for insurance than you get out of it, because of the insurer pay check and people scamming insurance.
Only take insurance for things you can;t pay yourself (e.g. health insurance and big operations).
Don't take insurance if you can pay for the repairs yourself, otherwise it is silly/stupid to get an I-Phone.
Just get a decent case if you need more peace of mind. Combined with AppleCare for unexpected extreme circumstances a good case will be enough. Theft is the only thing not covered.
If you need theft protection you'll need one of the plans you listed. I've no experience with that, keep reading.
A fool throws a stone into a well and a thousand sages can not remove it.
Self-insure it. An insurance company pays out much less money than it takes in. It has to be that way or it wouldn't be a worthwhile business. Thus the chances are that you will get less out than you put in. It's a form of gambling, and the odds are even worse than the casino.
So, if it's a risk that won't cripple you financially if it happens, it's not worth insuring. You have to insure the car, and you probably want to insure the house, because that would be crippling if it burned down. But for something where the risk is only a few hundred dollars or less, insurance isn't worth it.
You could literally self insure, by putting the amount they would otherwise have spent on insurance in a separate account. From which you withdraw money when a bad thing happens. But it probably is better just just do it in the old-fashioned way, and just always have enough money saved up "for a rainy day".
Unless you expect to be somewhat careless with your phone or can't afford to repair or replace your phone when it breaks, consider self insurance. Put that $100 in your savings account, that already goes a long way towards covering the repair of any one thing that can break in your iPhone (especially if you factor in your insurance deductible). Insurance companies expect to make money on this scheme, so statistically you are better of self-insuring if you can afford it. Insurance for things like these is a "tax on people who are poor at math", just like lotteries :)
If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
You should treat it like any other thing that you normally insure, in my opinion. The first question whether to insure is, can I pay for repairing myself, out of pocket?
If yes, don't insure. That's my personal policy.
8 of 13 people found this answer helpful. Did you?
Otterbox case and save the $9.99 a month in a savings account, oh and being responsible and not breaking my phone or being dumb and putting it in my back pocket.
Do not look at laser with remaining good eye.
Best money I spent along with my phone was the $35 or so it cost for an Otter box. While I may have to replace the case at some point due to some nasty scratching on the screen part, the phone itself is in pristine condition despite being dropped multiple times, stepped on, and the aforementioned scratching when it fell out of a pocket and got sat on at the beach. (I admit it - I'm a klutz.)
While they won't replace the phone if it does get broken, I much prefer the idea of protecting it so it won't break in the first place since then I'm not without it. Also acts as a belt clip, so there's that too.
-- "So they told me that using the download page to download something was not something they anticipated." - Bill Gates
Stay with the company that provided you exemplary service when Apple wouldn't.
Unless this is a well designed ad - in which case you should place your faith in god instead of selling insurance.
Just get a good case (Otterbox anyone?) and save the money on insurance. Phone insurance is a good thing if, say, you are a college student, but otherwise I just don't see the point.
Taxation is legalized theft, no more, no less.
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.
Insurance makes a degree of sense(as hard as insurers try to change this) when dealing with situations where risk is either inevitable(ie. your body, with all its potential for horrible and expensive mishaps, comes standard and you'll need one until you die) or a fairly large chunk of your net worth(most homeowning, say) or where your potential to hurt others potentially far exceeds your personal ability to compensate them and insurance is therefore mandated(car insurance on the consumer level, potentially various other flavors among venue operators and the like).
On cheap consumer devices, it just doesn't make much sense. The insurer has to make a profit in order to continue offering the insurance, so you know that(on average) purchasing the insurance is a bad deal compared to self-insuring, and you also know that the potential costs are bounded(ie. there is nothing that could happen to my cellphone that could possibly cost more than a new cellphone. There are plenty of diseases and/or accidents that could happen at any time that could run into an unpredictable but very large number that I don't even necessarily have a good way of estimating).
Just put the price of the insurance wherever you usually put money for storage, let the warranty handle any material defects/abnormal failures, and maybe buy a case if you are a bit of klutz. Unless you murder your phone both brutally and swiftly, you'll probably be able to get a refurb for the money you saved by not buying insurance, plus the deductable you would have paid, by the time your phone eventually does bite it. Worst case, a used or refurbed iphone 4/4S will cost peanuts if you kill your present one and really can't afford a replacement.
Given that, on average, buyers of insurance lose money, you should really only be buying it on things that are at the outer envelope of affordability; but that you must have for one reason or another.
The best protection policy on the market.
According to Betteridge's Law of Headlines, the answer is no.
There's nothing like $HOME
Think about it. If you paid for insurance for your car and had a deductible of 8.3% but a payment rate which is about 17% the value of the phone for the predicted duration of ownership or less... guaranteed to get refurbished crap...
Sorry, but I think I'd rather roll the dice, save money and buy bumpers and simply be careful. At least when/if I break my expensive phone, I wil be able to comfort myself with a brand new perfectly shiny latest version of whatever is out there.
I have never actually broken a phone before, so I can't say if this is a good deal for other people but definitely for me it would be a loss of at least $100.
Exactly my thought fellow coward!
It will be the 3rd iphone device that the submitter buys over a span of four years.
Which means that a. he/she probably can afford its loss, b. the expected lifetime of the device is 2 years.
Insuring a device with a lifetime of less than two years?
What is next? Insuring your shoes?
Neither Apple nor SquareTrade cover theft. If you do a lot of travel or are giving the phone to a teenager, you may want to consider someone else. In fact, most carriers won't even sell their own warranty or theft protection for Apple products anymore, not since AppleCare+ was introduced.
When I purchased my latest phone, my carrier offered insurance, I think it was $7 a month. If something breaks, you just take it in and the replace it. I had issues with my last phone with texts and even calls not coming to my phone (not dropped, my phone would simply never ring and I would have no record of the call on my phone). They replaced that one no questions asked, no deductible.
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
How idiotic can "ask slashdot" questions become?
Really?, you need to ask the whole slashdot community what to do to insure a freaking phone???, give me a break, do whatever you want, it's not that important anyway...
Comment removed based on user account deletion
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 !
http://preyproject.com
From the site:
Prey lets you keep track of your laptop, phone and tablet whenever stolen or missing -- easily and all in one place. It's lightweight, open source software that gives you full and remote control, 24/7.
A lot of common sense answers in the thread already, but it all boils down to a few options.
First, and foremost is you. You are the best insurance against damaging your property. It's yours, treat it well, keep it safe and it will work for you for a long time.
Second, a case. I have had good luck with Speck cases for my iPhones. A little rubber padding and I can literally toss the thing over my shoulder and only worry if it lands face first on a pointy object. Other than that, nothing. I have tested this myself and in front of others.
Third, insurance. Whether through the carrier, a third-party or your own existing policies. Have you checked your homeowner's policy or asked them about coverage? If you are this worried, you should.
Fourth, extended warranty, called AppleCare for the iPhone. I always get and recommend AppleCare when buying from Apple. It's worth the expense should something go wrong beyond the regular warranty period, as most things do.
Finally, if you're that worried about breaking it maybe you should get an iPad and a dumb phone instead. Seriously, if you are worried you can't take care of it then you probably have a track record of breaking things or an irrational fear of having nice things. If replacing something you use every day is a hardship, then maybe you don't need it or could use a less expensive alternative.
Looks like you were looking for what the pro's and con's of AppleCare Plus vs SquareTrade. I've had both on various equipment, however for the iPhone I would go with AppleCare, as this extends tech support on the phone to 2 years vs 90 days without it. Also, should you drop or damage your iPhone, you can walk into an Apple Store and get a replacement on the spot for $50.
For a long time, I've used my homeowners insurance policy to make sure ALL of my gadgets are covered - laptop, tablet, computers, music players, cameras, etc... Anything that costs more than about $100 to buy new I'd have added into my "technology" rider for a nominal fee per month on top of my regular homeowners policy.
More recently, however, they've explicitly started excluding smartphones which is likely due to the "I want the new iThing" phenomenon. Read: Insurance fraud.
In lieu of a formal policy from my insurance company, I've taken to setting aside about 75% of the cost of the unit and not worrying about coverage. If I do manage to break it in a catastrophic manner, I can use that money (plus a little extra out of pocket) to replace it. If it comes to that, I'll often buy a refurbished or used one to save a few bucks.
In the long-run, it's cheaper than formal insurance and I don't feel like I'm taking a bath in order to buy a new phone at unsubsidized prices.
My sources are unreliable, but their information is fascinating. -- Ashleigh Brilliant
If you are that clumsy that you tend to drop your fragile smart phone, maybe you should consider one that isn't so easily broken.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
First World Problems...
Does it cover data loss? Will it pay your medical bills if you get a brain tumour?
I don't understand why you would insure a disposable commodity. It's like insuring your toaster, or your shoes. Embrace your inner klutz and buy a cheaper phone.
Finally had enough. Come see us over at https://soylentnews.org/
I've owned a Motorola Droid (original) since it was first release, so almost 3 years. This thing is solid, it's been dropped many times, even on concrete. Other than some markings on the metal frame it's still fine. The glass screen has held up fine as well. I've accidentally carried in my pocket with car keys a few times. There are a few minor scratches but not bad. If I go with another Motorola droid product I wouldn't consider damage insurance.
On the other hand, we've given the kids iPod touches last year, and within 5 months they were all shattered. It seems for those devices even a minor drop is catastrophic. I don't know how different an iPhone is from an iPod as far as build and materials, but I'd consider the iPod touches fragile.
Given that, I'm ready for a phone upgrade and am considering the Motorola Droid Razr Maxx HD, or the iPhone 5 as my next phone. All my computers at home ar Apple (24" iMac, 15" macbook, 17" macbook pro), I like the apple hardware and OS, but have never owned their iPhone. Can some long-time apple owners chime in on how your devices tend to hold up to typical abuse? I'm not hard on my electronic, but realistically at some point it will get dropped or keyed. I'm used to not having to worry about that.
The iPhone will be very resistant to being keyed - it uses the same glass as the Moto phone. On the other hand, the previous several iPhones have all been very shatter prone. This one might be better because it's lighter, but it's still using the same sort of materials and was designed by some of the same people so I wouldn't put money on it.
"I zero-index my hamsters" - Willtor (147206)
I am planning to add it to an insurance/extended warranty plan I have which covers my shoes, socks, trousers, shirts, sunglasses. The underwear insurance is thrown in free with these things - I don't pay any extra premium for it.
You haven't even read a review of the product yet. Furthermore, you're about to get it and then be able to review it yourself.
There are many tradeoffs in mobile personal computer tech, mostly pitting battery life versus countless considerations, with the most debatable being screen resolution and GPU, but also including CPU. The result is that any particular phone model is very likely to not happen to match your own personal preferences. i.e. there probably does exist the perfect phone for you, but if you you pick one at random (and since you chose a not-yet-reviewed model, it really sounds like that's exactly what you did), the chance that phone is going to be the phone you want, are pretty small.
What I'm getting at, is the odds heavily favor that you're not going to like your unreviewed phone, even if it turns out to be outstanding quality. Every phone is aimed at a very specific niche, each of which happens to include only a few people. Five years ago there wasn't as much smartphone variety, so even if a particular phone wasn't aimed at you, it might have been the closest match you could get, to what you wanted. In 2012 that is never the case, except by random chance.
Wait for your phone and then play with it first, because there's a 98% chance you're going to resell it and get something else. i.e. There's a 98% chance that whatever you spend on insurance or extended warranty, will end up being wasted. IF by some miracle you're one of the 2% of the people whose battery/screen/GPU/locked-vs-free/OS/CPU combination taste this particular phone happens to be optimized for, then start worrying about whether insurance makes sense or not, and if so, which insurance company to use.
Whether a tech site (Slashdot) is the best place to ask questions about who has the best insurance policies, is hard to say. But I guess it doesn't hurt. You're just asking way too early, is all. IMHO the parts that make this stuff up are getting so commoditized and cheap (even for mobiles), that it doesn't make sense to insure this kind of thing anymore. As a general rule, within two or three years you will have spent as much on insurance as it takes to replace the device with something quite a bit better. i.e. $200 (total cost; no subsidies) in late 2014 is going to get you an awesome phone compared to which, the very best 2012 stuff is junk.
"Believe me!" -- Donald Trump
My father gave me the following advice: "Insure against catastrophe, not inconvenience." If you can afford to replace a broken/stolen phone - even if it means buying a cheaper model/refurb, cutting back on a different luxury for a little while, or putting it on a 20% APR credit card - then the insurance isn't worth it. OTOH, if you truly can't afford to replace the phone (why did you buy a phone that far out of your budget in the first place?), then an insurance policy would be appropriate.
As others have mentioned, insurance is, by design, a losing proposition for the customer. The only exceptions would be if the company has zero overhead (they don't) or if you can game the system (you can't). In cases where a potential loss would be life-altering, insurance is still worth it. If my house burned down, my life would be ruined without insurance. Likewise if I was sued by someone for ten million dollars after an auto accident - the lawyer fees alone would bankrupt me. Therefore, I have homeowners and auto coverage.
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.
Get a LifeProof case and stop worrying about being too careful.
I've taken my 4S swimming, surfing, and given it to my 9 mo old to chew on without worry. I've also dropped it on occasion, but so far it's been completely fine.
If you have a case like that and you *still* manage to break it, just pay the replacement cost.
Stonewashed blue jeans are tumbled in a slurry of abrasive pellets. The breakdown of these pellets is a grit that is trapped in the pockets, and which scratches the heck out of anything stored in them.
John
Just because Apple can't make a rugged phone doesn't mean others can't. There are many good rugged smartphones now. Nokia, Motorola, HTC, Samsung, Sonim, Casio, and even Caterpillar now have rugged smartphones.
Here's a Samsung phone being used to crack walnuts. Here's an HTC phone being used as a hammer. And here's an IPhone 4 broken by a 1-foot drop.
I have some phone insurance through a fee 'premium' based bank account ( I also get AA membership, household emergency insurance and the like) - which has turned out to be a handy investment, especially when the heating broke down. On top of which I stick 25 quid a month into a medium interest savings account for the next/replacement phone - thus far this has more than covered my needs.