1 2 Previous Next 10 Replies Latest reply: Feb 13, 2013 3:39 PM by commonsense101 RSS

    Asurion/Verizon Insurance

    first

      Ok, maybe Asurion insurance isn't worthless, but a decent "value", no.

       

      $10/mo, $120 year.  A $169 charge for a replacement Iphone.   If your phone bellies up after a year you pay $269 and get a reconditioned phone, not a new phone.   The Iphone costs about $207 to build new.   Nothing but PURE profit for Verizon and Asurion.   The question becomes: spend $120/yr for insurance with minimal coverage or.... not.   My take: not.  

        • 1. Re: Asurion/Verizon Insurance
          first

          And the answer is Square Trade.  Lower cost, better coverage.

          • 2. Re: Asurion/Verizon Insurance
            rcschnoor

            I assume you are only counting the cost of parts when you throw out that $207 value. This is NOT the only cost associated with the development/manufacture/sale of an iPhone. There are other costs involved. Infrastructure/research/advertising/etc...

             

            Additionally, you are of course assuming Verizon/Assurion purchases iPhones from Apple for $207 which they don't.

             

            Regardless, I agree that insurance on a cell phone is not a good value.

            • 3. Re: Asurion/Verizon Insurance
              first

              Actually, $207 is a generous (read: likely high) estimate.  Industry analysts peg the cost of an IPhone5 at betweek $187 and $207.   That is not BOM costs, rather, a fully assembled/tested unit delivered to the U.S.

              • 4. Re: Asurion/Verizon Insurance
                Ringah

                On industry analyst disagrees with you.

                 

                http://www.isuppli.com/Teardowns/News/pages/Many-iPhone-5-Components-Change-But-Most-Suppliers-Remain-the-Same-Teardown-Reveals.aspx

                 

                Then there's shipping, licensing, warehouse costs, ect.  All that said regardless of the cost Apple sells them to all the carriers at a very healthy markup.

                 

                As for Assurion I can't say it's the best value in the world (especially with the Iphone, high rates and higher deductible yikes).  But, what I can say is they usually get you the phone asap, they cover some accessories that were impacted and it also extends your warranty while you are paying the $10 per month(or $7 if it's not an Iphone), so if it's an issue that falls under manufacturers warranty you get a replacement for free even after the first year, so there is some value there to the right person.  An option like square trade is cheaper because it is limited.  Doesn't cover lost/stolen, doesn't extened the warranty or cover any accessories as far as I can tell from thier website.

                 

                Personally, I get a good case, be careful with my phone and don't get insurance

                • 5. Re: Asurion/Verizon Insurance
                  commonsense101

                  Most people use insurance to help off set costs..only you can do the cost analysis for you.

                   

                  I don't get the insurance because paying 500 for a new phone is no big deal, plus I can get something different..some people aren't as willing to spend on toys and want the insurance

                  • 6. Re: Asurion/Verizon Insurance
                    first

                    You may quibble about the cost, a buck here, a buck there, but the bottom line is that Asurion is making big bucks off their insurance at your expense.   Be sure to remind yourself that their "insurance" provides a replacement phone, not a new phone.  Yes, replacements are used.   They take your failing phone, send you a repaired phone from a previous customer and then repair your phone to unload on the next sucker.  How's that play into your cost model?   Two viable options: Ebay and Square Trade.

                    • 7. Re: Asurion/Verizon Insurance
                      commonsense101

                      Every electronic item I've ever delt with is refurbished for its replacement..from a 39 mouse to a 30k Cisco router...

                      • 8. Re: Asurion/Verizon Insurance
                        prettysenshi

                        That is absolutely not true.

                         

                        I had a Droid Razr for several months and ended up shattering the glass underneath the glass. And every phone they sent me (had to go through several) was brand new and still sealed. It depends on the phone and how long it has been out.

                         

                        Plus not everyone can afford to pay full retail price or 400-500 dollars outright for a phone. My phone retails at $800. I couldn't afford half of that.

                        • 9. Re: Asurion/Verizon Insurance
                          Dorkmaster

                          No, they are refurb's, that is the way refurbs come, with all the plastic on them.

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