Droids Selling for $49.00 - Why Buy Insurance?

[jayb]

I can't believe some people.......$50 to replace a $600 phone.........O BTW only pay 5.99 a month ins.......3 months so far.

 

[KZIWarrior]

Personally I think that you should never buy insurance for items that you can replace with cash. You have insurance on your house and car because you can't replace them out of pocket. Just do the math: Add the premium for the life of the contract, plus the deductible to replace the phone. I bet you can buy a lightly used Droid off of eBay or craigslist for less than that, especially in a few months.

If you break phones all the time, just take better care of your stuff. I'm careful with my stuff and have never broken one.

With cheap phones you could argue that but not with smartphones like the Droid:
$7/month x 18 months* + $90 deductible = $216... You can be nearly guaranteed that the price of the Droid (off contract) will not go below $216 within the 18mnths* you would need/want it. Personally I treat my phones VERY well but smart-phones in general don't long (USB failure and/or screen damage are almost assured before your 18mnths is up). Add to that flashing ROMs (and for the Droid OC'ing) and the amount of high use most smart-phones get... 18 months is stretching it.

*18 months assumes the standard 2 year contract which allows you to upgrade/renew 6-months prior to contract expiration.

 

[jayb]

Thank you!!

 

[cuskit]

Personally I think that you should never buy insurance for items that you can replace with cash. You have insurance on your house and car because you can't replace them out of pocket. Just do the math: Add the premium for the life of the contract, plus the deductible to replace the phone. I bet you can buy a lightly used Droid off of eBay or craigslist for less than that, especially in a few months.

If you break phones all the time, just take better care of your stuff. I'm careful with my stuff and have never broken one.

First - I am very careful with my Droid - certainly more so than my last 3 dumb phones. But I do work in a trade that is "hazardous to Droid health". As such I pay close attention at all times to the careful handling of my phone. That being said - I feel the possibility of the phone breaking, losing it or getting it stolen are NOT worth the risk for a $600 phone. And I seriously doubt any good Droid will be had for just a couple hundred or less in 22 months (my new every two)... As if I'd take a chance on an eBay phone anyway. My business depends on the communications realized with my phone. It's mandatory that I have a quality, working phone at all times.

And if you need to know - yes, I could easily buy a new car "out of pocket". I would hope most responsible adults have made enough investments and wise savings so that if necessary they could purchase a new car. Heck - using your analogy - I can easily buy a replacement for my 2006 F150 on eBay Motors - tons of "lightly used" trucks on the market. Yea right... In a pinch I could also buy my house if necessary, though I'd have to juggle my investments a bit. That luxury results from the same frame of mind that affords me a decision like insuring a $600 phone for only five bucks per month. And I don't make that statement lightly. It's just business. Any good accountant could advise you of the wonderful insurance premium deductions allowed for businesses. Perhaps that was not in your equation?

Nope. Me - as I stated - I'll happily pay my 5 (@$2.50 after tax breaks) bucks per month and have ease of mind knowing that I will never be without my Droid for more than 24 hours at the most.

Sleeping well nights - mikey

 

[STVA]

I don't believe that $600 is a fair number to use for replacement, no one buys them new at that price and you can buy one off of eBay for less. The insurance company sends refurbs anyway, don't they?

I'm all for everyone making the decision they feel the most comfortable with. I just hate to see some people spend extra money if they haven't done the math or really thought about what they are buying. There are people out there who also buy "extended service plans" from Best Buy that are basically throwing their money away.

 

[KZIWarrior]

I don't believe that $600 is a fair number to use for replacement, no one buys them new at that price and you can buy one off of eBay for less. The insurance company sends refurbs anyway, don't they?

I'm all for everyone making the decision they feel the most comfortable with. I just hate to see some people spend extra money if they haven't done the math or really thought about what they are buying. There are people out there who also buy "extended service plans" from Best Buy that are basically throwing their money away.

Look two posts up... the math is right there... as for your ebay comment the cheapest "New" Droid on ebay is currently $385. Any under that were used or otherwise worthless (bad ESNs ect.). So now who "[hasn't] done the math?" You can cancel insurance at anytime... so if/when the prices (for legit, new phones) comes down people can cancel it then, assuming it will be cheaper than the above price. Also consider that when you get the replacement (even if it is a refurb) you get a warranty which you will NOT get from 99% of the ebay phones (i.e. the manufacture are not obligated to honor warranties for devices purchased through non-licensed retailers).

 

[STVA]

You also have to look at the scenario in which you pay for insurance but never use it. You've lost out on the premium and have nothing to show for it.

 

[cuskit]

You also have to look at the scenario in which you pay for insurance but never use it. You've lost out on the premium and have nothing to show for it.

That's the stigma of all insurances. You may only have piece of mind in the end. Each persons weighs the pluses and minuses and makes a decision based on their own financial situation as well as the merits of piece of mind not worrying about a possible loss. Rarely does one beat insurance companies...

Look at it this way - you go out with the guys on a weekend to a bar or pub. Pay your 5 bucks per month for phone insurance, and have one less beer every two weeks. :icon_ banana: What have you lost? The smallest of a buzz, gained no calories, and you don't actually need that extra beer anyway since you are not worried anymore about breaking your phone.:icon_ devil: mikey

 

[takeshi]

I bet you can buy a lightly used Droid off of eBay or craigslist for less than that, especially in a few months.

Link?

Personally, I'd rather get a "known good" replacement from VZW than ebay. IMO it's easier to deal with potential issues with the replacement, if there are any.

It's a judgment call that each person needs to make.

If you break phones all the time, just take better care of your stuff. I'm careful with my stuff and have never broken one.

Accidents happen, no matter how careful one is. That's why they're "accidents" and not "planned incidents".

Again, personal judgment call. Your own experience is the best thing to go on.

 

[vineaux]

It is true that accidents do happen, but buying insurance just because.. is not a wise decision either. Another note is that why are we expecting a replacement phone a brand new one? Each phone has more or less a 2-yr life (contract) so paying VZ $8/month ($192+$90=282 worst case replacement at the end - can you sell that phone for that amount on craigslist or eBay 2 years down the road?)
I think the insurance company already did this math in and perhaps for smartphones, an extended warranty to last another year would do for malfunctions otherwise theft would be covered somewhat by your home insurance (if you own a home.)
What say you?:icon_ banana:

 

[cuskit]

It is true that accidents do happen, but buying insurance just because.. is not a wise decision either. Another note is that why are we expecting a replacement phone a brand new one? Each phone has more or less a 2-yr life (contract) so paying VZ $8/month ($192+$90=282 worst case replacement at the end - can you sell that phone for that amount on craigslist or eBay 2 years down the road?)
I think the insurance company already did this math in and perhaps for smartphones, an extended warranty to last another year would do for malfunctions otherwise theft would be covered somewhat by your home insurance (if you own a home.)
What say you?:icon_ banana:

You are right. But on the homeowners insurance - remember most carry a deductible. Maybe much higher than the cost of the phone - so counting on that for theft might not be viable. Not sure about losing your phone either - Asurian does cover it if it's lost. mike

 

[xliderider]

I forget what the exact deal is, but the idea that you would have to pay the full retail price for a replacement phone on Verizon is a myth. I believe Verizon would offer to sell you a replacement Droid at the one year contract price if you are willing to extend your contract.

 

[jflyer5]

First post! My droid should be here tomorrow got for $49 bucks by making verizon match neweggs price. I am considering squaretrade insurance because I found a coupon code for 30% off. this equates to 2 years for around 80 bucks. I have thirty days to decide but I am very tempted. reading the fine print is includes no deductable unless you get it wet or leave it in a car with windows down or doors unlocked. Just wanted to share and get a few opinions. Thanks

 

[vineaux]

Matching price from VZ?

Do they really do the matching thingy? How did you manage that? Did you upgrade your phone or become a new subscriber? Tell me details...:icon_ banana:

 

[vineaux]

I also tried wirefly (and neweggs) the site does not allow upgrade (to add data plan) ONE line within a family plan - it insists that you MUST change 2 lines... but I only need ONE!!! anyone has any idea how to go about this? Get them on the phone? Is this a fraud thing?