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Cellphone Replacement Insurance… Benefit or Scam?? December 17, 2007

Posted by Tell it like it TI is! in cellphone damage, cellphone replacement insurance, refurbished replacement, replacement cellphone, sprint insurance.

Well PTIers it was bound to happen!  I was getting undressed, and my PPC 6700 fell off my belt clip and went crashing to the floor!  Disaster, right?  Well, not exactly.   Since I got the phone last year, I have been paying $7/month for replacement/loss insurance.  So I called the replacement center for Sprint, told them what happened and they were more than happy to take my $50 deductible and tell me that I would be receiving a brand new “refurbished” PPC 6700.   She even said that she would express ship it to me for an additioanl $15 bucks!  Now that’s service…right??  If it is such a great plan, why do I feel so wierd about it?

After hanging up the phone, I started thinking about this.   I got the phone last year September.  I have been paying $7 per month for insurance.   My math tells me that amounts to $98 bucks. Add on the $50 deductible and the $15 shipping cost, and I am out of pocket $163 bucks!   So I am paying $163 bucks for a refurbished phone that is not even in production anymore.  I guess one could say that I am ahead of the game, cause I could have been out a whole lot more if I had to buy the new HTC Mogul for more than $163 dollars… right?

Just wanted to see how PTIers feel about cellphone insurance.  How long do you pay before it becomes a bad deal?  Are there any strategies (i.e. maybe purchase insurance for the first 12 months for a new phone and then cancel after some break point)?   

 Not sure why I am feeling strange about this, but I am just telling it like it is!!!!  Sorta like the old tune from New Edition…. 

If it isn’t love, why do I feel this way? 

By the way, while I am waiting for my refurbished PPC 6700, I got Sprint to activate my first Treo!!!  Check it out, it actually is bringing back a lot of memories and it works great!!!

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1. Tell it like it TI is! - December 17, 2007

Been thinking about this today. I think the benefit to purchasing the insurance is the “here and now” relief it offers. Let me explain. If you run the straight numbers, you can almost make a case for not purchasing the insurance. However, I was thinking that you can run the numbers, but would I have the $300+ to drop on a phone a week before the Holidays??? Maybe the benefit is that I was able to avoid the big $$$$ drop by only sending $50 bucks today.

However, I was thinking… are there folks out there submitting claims every 12 months simply to get their money’s worth for the insurance???

Hey… Just telling it like it is?

2. Fast Follower - December 18, 2007

I have a general insurance rule: Never buy insurance to replace items you can afford to replace. In the end, I think you save a bunch over a life of not buying insurance for things you can afford to replace.

3. Tell it like it TI is! - December 20, 2007

I hear you FF, but it sure was nice just dropping $50 instead of $399 for a phone right at Xmas time!!!!

Just telling it like it is!

4. Jackie - January 3, 2008

About a year ago I had a problem with my phone and I didn’t have a maintenance plan. It just stopped working. I went to the Sprint store and they basically told me I was s.o.l. I then started looking at new phones and was told I had to pay the activation fee and sign a new agreement. After I was there for awhile, mumbling under my breath the whole time, an instore rep (newbie I believe) said that I could pay $35 onsite to see if they could fix my phone and that if they couldn’t they would have to give me a new one (same phone if available). I paid the $ and they couldn’t get it to power up so I got a new phone, no contract and no activation fee and all I paid was $35! The only negative thing was the new phone wasn’t at that store and I had to go to the next town to get it but I suppose that’s really a positive :o)

5. Fast Follower - January 3, 2008

Great PTI update Jackie. That’s the kind of intell we like around here.

6. Tell it like it TI is! - January 3, 2008

Great update, Jackie. I just bougtht the kids two new phones for Xmas, but I cannot bring myself to pay $21/month for insurance. I am going to try the $35 repair strategy next time something happens.

Just telling it like it is!!!!

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