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Insurance Feedback - NOT worth it

Member

I invested in the Asurion insurance through Verizon for all the family phones (6 total) - thought it a steal at $30 a month.  Oops.

I found the perfect drop angle for my new iPhone 7 (ugh) that not even the screen protector or protective case could save.  Cracked the glass (the LED is fine).  Started the arduous process of submitting a claim (easier to get a U.S. passport by the way) and come to find out, the deductible is $200!  Plus I will have to mail it to them and wait.  Buyer beware - the details of the plan and associated deductibles were not shared when I purchased the plan,  but I also didn't ask or insist on reading it either.

Found a store that will do it professionally, in 1 day, for $149.  Based on that cost, the $30/month insurance is NOT worth it.  It's also not worth one phone coverage of $11/month.  The math -

  • Assuming 1 glass repair over two years - $11/month for insurance = $220.  One glass repair, out of pocket $200 deductible - total is $420!!
  • My case: $30/month and assume two dropped phones in two years.  No insurance - $300.  Insurance plus deductible $1120.  Even dropping 5 phones over two years it's still cheaper to pay direct.

Insurance company win - customer loses. 

I have since cancelled the coverage.

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Re: Insurance Feedback - NOT worth it

Community Manager
Community Manager

pauljame!!

I definitely understand needing to make sure your phones are protected at a good price. I understand the deductible isn't low but these are at least $649.99 phones. Repair can be an option at times but it does void the warranty unless done directly by the manufacturer and if something goes wrong with the phone the next week you'd need to repair it again or replace it.

Insurance covers a lot more than just glass repair. It includes any damage including water damage, crushing, the screen, and anything else that might happen. It also can be used to get a replacement if the phone is lost or stolen for that same deductible. In those cases a repair wouldn't be an option and we'd be looking at a full price replacement. The plan you mentioned also does include an extended warranty which keeps the phones covered under warranty once the one year warranty expires. If it is a warranty replacement and the phone isn't damaged that is a free replacement as well with no deductible. With any replacement the replacement should be provided with free overnight delivery if you have insurance.

We certainly don't require the coverage and like all insurance if you don't use it then it would certainly be cheaper not to have it. It gives you the peace of mind though to know that no matter what happens you can get a replacement for that deductible without having to worry about paying full price for a phone and that it will continue to be guaranteed and covered under warranty.

AndrewT_VZW

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Re: Insurance Feedback - NOT worth it

Member

Is it customary to receive a "refurbished phone" with a claim on insurance?

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Re: Insurance Feedback - NOT worth it

Sr. Leader

LKRENSHAW wrote:

Is it customary to receive a "refurbished phone" with a claim on insurance?

Yes.

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Re: Insurance Feedback - NOT worth it

Sr. Leader

Many on these forums have been recommending against insurance for your phones for quite some time. I have never had insurance on my phones for the past 20 yrs.

Of course, for those who need it because they lose or have their phones stolen on a regular basis, I think Asurion is the only provider who covers this and the $200 deductible is less expensive than a $800 phone.

Personally, I have several of my older devices which are still in perfect working order I can use if need be.Smiley Happy

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Re: Insurance Feedback - NOT worth it

Member

So the 11 dollars a month for x years is just so we can have access to pay 200 dollars to fix our phone if needed?.   So if someone has their phone for 5 years before they use this service once.  That's what 132 *5= 660 + 200= 860 for protection on their out dated phone.  That 11 dollars a month only gives the right to have this protection do in essence it's just really a scam.  Or free money.  Plus overcharging more then fixing what a screen would cost.  I cracked my screen and realized even with this coverage I cant afford to get it fixed.  So where is my peice of mind as you just take my money after the fact we arent told about the deductible till we visit the website to file a claim.  When your sold the plan they dont even explain the deductible to you they literally tell you that just for 11 dollars a month you will have total coverage and protection.  I had even asked a year and a half ago when I got my phone if there was a deductible and was told by the employee that no what is shown is all you have to pay as long as its covered.  That turned out to be a big fat lie.  

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Re: Insurance Feedback - NOT worth it

Sr. Leader

@Demecas wrote:

So the 11 dollars a month for x years is just so we can have access to pay 200 dollars to fix our phone if needed?.   So if someone has their phone for 5 years before they use this service once.  That's what 132 *5= 660 + 200= 860 for protection on their out dated phone.  That 11 dollars a month only gives the right to have this protection do in essence it's just really a scam.  Or free money.  Plus overcharging more then fixing what a screen would cost.  I cracked my screen and realized even with this coverage I cant afford to get it fixed.  So where is my peice of mind as you just take my money after the fact we arent told about the deductible till we visit the website to file a claim.  When your sold the plan they dont even explain the deductible to you they literally tell you that just for 11 dollars a month you will have total coverage and protection.  I had even asked a year and a half ago when I got my phone if there was a deductible and was told by the employee that no what is shown is all you have to pay as long as its covered.  That turned out to be a big fat lie.  


Complain to Asurion, they are the insurance carrier.  

They have a near monopoly with every carrier and even if you buy a policy for a product on amazon.  All the info, including deductibles is published.

https://www.verizonwireless.com/support/total-equipment-coverage-faqs/

Insurance is a for-profit business. How much do you pay for homeowners or renters insurance? How much do you pay for automobile insurance? Medical insurance? The only insurance that does not have a deductible is life insurance. I pay about $1000 a year for homeowners insurance and yet I have never had a claim in 25 years. Does that mean I get some sort of deal when I finally do you have to make a claim? No it does not. 
     If you don’t want insurance cancel it. Personally I think it’s A bad product because it provides a little value unless you are a klutz and break your phones on a regular basis.   We have been self insuring for 20 years. By that I mean we put aside $10 per phone every month. For years it was pointless and we didn’t spend any of that money. In the last five I have used those funds to upgrade phones as needed. It keeps me from having to deal with installments

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