If you are a clumsy or ditzy or even disorganized person like I am, BEWARE OF ASURION.... they "lure" you into paying for insurance on your phone... sounds fantastic, right? Until you're like me and have the completely unfortunate luck of having my phone break (no fault of mine, the tech told me to take the battery out of my Droid 4 when I first got it to "reset" it, so what do I do? like a good little customer, I took the battery out! not knowing this completely screws up the phone) then having my (replacement from the first screw up) phone STOLEN from me (also, NOT MY FAULT!!) recently, Asurion sent me a letter telling me "you have reached your maximum allowed claims for this 12 month period (oh and thanks for the $200 you sent us before you could have a rebuilt replacement). Of course Asurion as assured me they will no longer be charging me for insurance, BECAUSE THEY ARE NO LONGER COVERING ME! I have reached the maximum number of claims per year, a whopping two claims..... and after 12 months has gone by (hopefully with no more mishaps) I can BEG for them to cover me. With phones getting more and more complicated and more and more expensive when you have to pay full price (to replace my Droid 4 will now cost me $600+) whats the point? Asurion was making money hand over fist from people (llike I used to be) who never lose, break or do ANYTHING to their phones! And now with Verizon not allowing any sort of upgrade (for me until 5/2014) who can afford this? I am willing to pay the insurance charges every month, just like I used to... I am willing to file claims and wait anywhere from three to seven days to have my phone replaced (since for some reason an actual Verizon store, that can repair their equipment, cannot replace their own phones)..... why was this taken away? I remember the letter warning of this... but this is ridiculous... if people are willing to make your company money, why not take it?
I am fully aware that with any insurance company they charge premiums. I am also aware that they have maximums on how much people are "allowed" to utilize their precious coverage. My question is STILL this: if Asurion is making money from people like me who have been Verizon customers for years (almost 10 now) and I am WILLING to pay their premium, why on earth have they now limited the amount of claims people are allowed to file? Were people really filing THAT MANY claims? I have a really hard time believing that it cost Asurion that much money (don't forget the deductibles we HAVE TO pay before they will send us our [refurbished] replacement phones, mine was $99 EACH totaling $198. Plus the charge each month from me since may when I bought the thing ($6.99 a month) meaning just since May they have made $225.96... and that's just the insurance company! Not to mention the (I think it was) $149.99+ tax I paid Verizon for the phone itself... my point being, if I'm paying $6.99 (for two lines, mind you) AND the replacement "deductibles", is Asurion really SO broke they have to limit the claims you can file in a year? and as I explained, the Verizon tech is actually the person who screwed up my first phone... should I beg Asurion for one more chance to have my phone replaced by a refurb if it gets stolen again?
They are a business and out to make profit. All insurance companies are out to make money.
Regardless if it's cell phones, your car, or your house. If enough stuff happens you will not be profitable and become a liability to them.
So if let's say you pay $10 a month and the deductible is $100 so in 10 months nothing happens that's $200 for a device. If you device refurb costs them $300 then it would take 20 months to break even. As long as nothing happens they make $100 if the device breaks once within that 20 month period. If it happens twice they won't make money and actually lose money. They set limits to protect themselves from losing money.