Asurion who insures AT&T's technology A RIP OFF - $125 deductible for a $200 phone!!!

[marylynndurfee]

That's equivalent to a $12,000 deductible for a $20,000 vehicle! I've had coverage for 2 years at $7/month and was told the deductible was $50. I purchased a $200 phone. My phone broke and I went to the AT&T store, they told me it would be a $50 charge to my phone for the replacement. Two weeks later I don't have a phone, went to the store, picked up the claim and did everything and then found out it is a $125 deductible. That is the equivalent of a $12,000 deductible for a $20,000 vehicle with auto insurance. This is extortion! They refused to do anything and said they sent me a letter about "tiers" that I did not receive, nor would I have known that was who insured my cell for AT&T. No consumer would use/pay for a service that provided so little coverage. They told me to upgrade with AT&T for $50 and get a new phone. So, they are bullying the consumer into another two year contract with AT&T rather than doing a claim. EXTORTION! AT&T should use another company to cover their technology. I have filed complaints with the FTC, FCC, Insurance Commission, BBB! Neither Asurion nor AT&T would resolve the matter. I cancelled the insurance and I advise everyone out there to request a contract regarding insurance of any technology. Heck, we don't even know the name of the company AT&T uses until we have a claim. 

[mejoey1]

What phone costs $200?

[drumn_bass]

I guarantee your phone costs more than $200... Tell me what phone you have and I'll tell you the real retail cost, $200 was with a contract, which is a subsidized greatly discounted price.

[marylynndurfee]

Well, whatever it was, it is outdated now - a G3 Samsung Galaxy. Purchased it when my last phone broke and then started carrying the insurance. Like I said, it is pretty much outdated now - everything is G4. The upgrade with AT&T for $50 makes a lot more sense. The insurance is a rip off, period.

[wingrider01 ACE - Expert]

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marylynndurfee wrote:

Well, whatever it was, it is outdated now - a G3 Samsung Galaxy. Purchased it when my last phone broke and then started carrying the insurance. Like I said, it is pretty much outdated now - everything is G4. The upgrade with AT&T for $50 makes a lot more sense. The insurance is a rip off, period.

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By your definition all insurance is a rip-off. Any insurance deductable in the world does not decrease as the item insured becomes outdates, so your argument on that point does not hold water.

I am curious about one thing, the dedcutable and policies are documented - did you review them when you purchased the insurance and before you signed? If you check the current prices for that phone at the various sites, the price is still above the deductable. If as you state you have documentation showing that your deductable is supposed to be 50.00 then take in to the store and show them. The terms are set forth in the paper work you physically or electronicly signed

[marylynndurfee]

Every phone is outdated, yes just like a vehicle. Unlike a vehicle, you have an AGREEMENT and the facts are DISCLOSED. With Asurion you don't even know the name of the insurance company. AT&T asks you if you want insurance for $7/month (at that time it was a $50 deductible) and you go on. Phone breaks 2 years later, I go in the store, they tell me $50 deductible and do the insurance claim. EVEN ALL THE EMPLOYEES IN THE STORES THINK IT IS STILL $50. Two weeks later - yesterday - I go in the store, another employee checks and sees the claim was started but just sitting there. We start it up again, I get on the phone with Asurion and we do the whole thing and the last thing the rep tells me is that it will be $125 deductible.  I said the phone was only $200 - NO I DID NOT PURCHASE IT WITH AN UPGRADE OR NEW CONTRACT! That phone is what made the rate of insurance go from $4.99 to $6.99 month. Reasonable, that I saw on the bill and questioned. That's when the Asurion rep said why don't I upgrade at AT&T and get a phone for $50. I told her because I don't want to lock into another 2-year contract. IT'S A SCAM! Defend it all you want because you are AT&T employees. I love AT&T - it's the only wireless phone I've had. I tried to get their local service for my land line and internet but they are blocked from our area. My problem is with Asurion and it should be a problem for anyone out there who is paying for a service that is !) no disclosed; 2) has a deductible the equivalent of a $12,000 deductible on a $20,000 vehicle. If you can't see that logic, then you're missing the point and we'll leave it with the Insurance Commissioner, the FTC, the FCC, BBB and if they think it's fraudulent that wil be their decision, but my voice is that it is unfair to the consumer. I cancelled the insurance thru AT&T. I still have AT&T as my phone service.

[youngjm ACE - Master]

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marylynndurfee wrote:

Every phone is outdated, yes just like a vehicle. Unlike a vehicle, you have an AGREEMENT and the facts are DISCLOSED. With Asurion you don't even know the name of the insurance company. AT&T asks you if you want insurance for $7/month (at that time it was a $50 deductible) and you go on. Phone breaks 2 years later, I go in the store, they tell me $50 deductible and do the insurance claim. EVEN ALL THE EMPLOYEES IN THE STORES THINK IT IS STILL $50. Two weeks later - yesterday - I go in the store, another employee checks and sees the claim was started but just sitting there. We start it up again, I get on the phone with Asurion and we do the whole thing and the last thing the rep tells me is that it will be $125 deductible.  I said the phone was only $200 - NO I DID NOT PURCHASE IT WITH AN UPGRADE OR NEW CONTRACT! That phone is what made the rate of insurance go from $4.99 to $6.99 month. Reasonable, that I saw on the bill and questioned. That's when the Asurion rep said why don't I upgrade at AT&T and get a phone for $50. I told her because I don't want to lock into another 2-year contract. IT'S A SCAM! Defend it all you want because you are AT&T employees. I love AT&T - it's the only wireless phone I've had. I tried to get their local service for my land line and internet but they are blocked from our area. My problem is with Asurion and it should be a problem for anyone out there who is paying for a service that is !) no disclosed; 2) has a deductible the equivalent of a $12,000 deductible on a $20,000 vehicle. If you can't see that logic, then you're missing the point and we'll leave it with the Insurance Commissioner, the FTC, the FCC, BBB and if they think it's fraudulent that wil be their decision, but my voice is that it is unfair to the consumer. I cancelled the insurance thru AT&T. I still have AT&T as my phone service.

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Unfortunately this is nothing new.  All the carriers have similar plans and rules.  They do disclose it but you have to read the fine print.  You are right it is not a good deal but it is an option!

[kinghdmi]

The goal of every insurance carrier is to pay out nothing.  It doesn't matter if its a phone , a car, medical, whatever.  Its not worth insuring a $600 phone. You will always lose.   ATT  or any cell phone co. has nothing to do with it.

[JFizDaWiz]

Insurance is great, just wish I got it for my phone since it just died on me, my phone was an international device so couldn't get it through att, there were similar options but I was stupid. I paid 700 for my phone, now I'm screwed.

[mejoey1]

You can add your phone to your homeowners or renters insurance, some apartments make you pay for renters insurance because they are not liable if something happens to your belongings or www.squaretrade.com State farms renters Insurance http://www.statefarm.com/insurance/renters/renters.asp For less than a dollar a day, a State Farm renters insurance policy will cover all of your property at its full replacement cost. Whether you rent a house or an apartment, protect your possessions with State Farm renters insurance, and you could end up saving thousands.*

[kdfederer ACE - Professor]

But what is your deductible on your homeowners? Mine is $500. So it would still cost at least $500 to replace my phone. The insurance is peace of mind. IF you don't think the cost is worth it, don't buy the insurance, but then again, don't complain when your phone breaks and you have to pay big $$$ to have it replaced because you are not upgrade eligible.

[wingrider01 ACE - Expert]

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marylynndurfee wrote:

Every phone is outdated, yes just like a vehicle. Unlike a vehicle, you have an AGREEMENT and the facts are DISCLOSED. With Asurion you don't even know the name of the insurance company. AT&T asks you if you want insurance for $7/month (at that time it was a $50 deductible) and you go on. Phone breaks 2 years later, I go in the store, they tell me $50 deductible and do the insurance claim. EVEN ALL THE EMPLOYEES IN THE STORES THINK IT IS STILL $50. Two weeks later - yesterday - I go in the store, another employee checks and sees the claim was started but just sitting there. We start it up again, I get on the phone with Asurion and we do the whole thing and the last thing the rep tells me is that it will be $125 deductible.  I said the phone was only $200 - NO I DID NOT PURCHASE IT WITH AN UPGRADE OR NEW CONTRACT! That phone is what made the rate of insurance go from $4.99 to $6.99 month. Reasonable, that I saw on the bill and questioned. That's when the Asurion rep said why don't I upgrade at AT&T and get a phone for $50. I told her because I don't want to lock into another 2-year contract. IT'S A SCAM! Defend it all you want because you are AT&T employees. I love AT&T - it's the only wireless phone I've had. I tried to get their local service for my land line and internet but they are blocked from our area. My problem is with Asurion and it should be a problem for anyone out there who is paying for a service that is !) no disclosed; 2) has a deductible the equivalent of a $12,000 deductible on a $20,000 vehicle. If you can't see that logic, then you're missing the point and we'll leave it with the Insurance Commissioner, the FTC, the FCC, BBB and if they think it's fraudulent that wil be their decision, but my voice is that it is unfair to the consumer. I cancelled the insurance thru AT&T. I still have AT&T as my phone service.

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actually yes you do if the read the dcoumentation

http://www.wireless.att.com/learn/en_US/pdf/wireless-phone-insurance-terms.pdf

http://www.att.com/esupport/article.jsp?sid=53464&cv=820#fbid=lwLw0L9nW_5

http://www.wireless.att.com/cell-phone-service/services/serviceDetails.jsp?LOSGId=&skuId=sku1040075&...

[marylynndurfee]

Find out what the deductible would have been. On a $700 phone, it should be $420 according to my experience/example posted here. That's the same reason why I got the insurance to begin with, but it really didn't help. Of course, I'm eligible for an upgrade so I can get it replaced for $50 instead of the $125 deductible and it's not replaced, but a current, better phone. Good luck!

[marylynndurfee]

Yes, it's all that acceptance and defense that gives insurance companies and corporations the right to run all over the people. Good for you - you should be so proud of yourself!

[marylynndurfee]

And that gives them the right to rip people off. You should be so proud of yourself and the corporations you work for. Best of luck! It will be your job and salary and pension they are ripping off one day. I won't defend you either.

[drumn_bass]

He doesn't work for AT&T... Can you tell me what phone you have? I'm just trying to figure out what happened... there is no phone that I know of that costs $200 full retail and has a $125 deductible, no way.

[eggypadua]

and  they send you a  refushished phone. totally rip off.

[mejoey1]

http://www.squaretrade.com/ Square Trade has different insurance prices and deductables they insure all cellphones.

[marylynndurfee]

Samsung Galaxy. I bought it for $200 when my ancient Nokia broke when I dropped in a creek walking. I got the Samsung and started getting my email on my phone and I love that part! It may have been used at that price. Anyway, I think the consensus is clear. I cancelled the insurance and I will look into some of these other insurance suggestions where I will know the name of the company and the deductible. Thanks for all the input everyone!

[youngjm ACE - Master]

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kinghdmi wrote:

The goal of every insurance carrier is to pay out nothing.  It doesn't matter if its a phone , a car, medical, whatever.  Its not worth insuring a $600 phone. You will always lose.   ATT  or any cell phone co. has nothing to do with it.

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No the goal of insurance is to sell it at a price that covers your payouts, administration and provides a reasonable rate of return for the risk being taken!  When the price and outlays by the purchaser do not make sense, like here, it is a bad risk for the insurance company and a bad deal for the buyer but some purchasers feel better having it.

[wingrider01 ACE - Expert]

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marylynndurfee wrote:
Find out what the deductible would have been. On a $700 phone, it should be $420 according to my experience/example posted here. That's the same reason why I got the insurance to begin with, but it really didn't help. Of course, I'm eligible for an upgrade so I can get it replaced for $50 instead of the $125 deductible and it's not replaced, but a current, better phone. Good luck!

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sorry to disappoint you, but the highest deducatable on the insurance is 199.00, not the 420.00 that you expierencer claims. Bottom line - first read what they give you before you agree to it and sign it. the links give the list of deductables

[edwards4425]

Even if it doesn't cost 200 the whole system is a joke. For a phone I can fix for 200 they are still going to charge me 200. 
If you get an Iphone get apple care, its terms and conditions are a lot less shady and the customer support is leagues ahead. Try and call assurion they will conveniently disconnect and almost force you to do it online. 
Oh and the next day claims are crap. They force you to send in a bunch of paper work which then takes 24 hours to process. So if your phone is unusable do not expect to have an operating one for awhile. There are much better options att is just looking for those deductibles to screw you over.

[ghostryder ACE - Professor]

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edwards4425 wrote:

Even if it doesn't cost 200 the whole system is a joke. For a phone I can fix for 200 they are still going to charge me 200. 
If you get an Iphone get apple care, its terms and conditions are a lot less shady and the customer support is leagues ahead. Try and call assurion they will conveniently disconnect and almost force you to do it online. 
Oh and the next day claims are crap. They force you to send in a bunch of paper work which then takes 24 hours to process. So if your phone is unusable do not expect to have an operating one for awhile. There are much better options att is just looking for those deductibles to screw you over.

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so, to replace a $650 iPhone via insurance cost $199 (deductible). What's the issue. I you loose, damage your iPhone, AT&T will notreplace it for contract agreement price, they'll charge full retail. 

Its just like the deductible forreplacing your vehicleswindshield. My deductible is $125 for a $500 windshield. I'd rather pay $125 than $500 for a new windshield.

[livingaboard]

I would agree that the deductable  is ridiculous and I am speaking of the top tier $200 deductable because they send you refurbished crap without a battery, charger, etc.

The insurance price is expensive if you compare the cost of insurance to the cost of the phone and then compare that to other insurance types like cars, homes, etc

Unfortunately ,I am one of those people that work in a manufacturing environment and have broken  a few phones at work.  I have also left one at an airport one time.  

I have the Galaxy Note 2 now and that is going to cost me like $700 to replace if something happens to it.  My general rule is that I carry insurance for about the first year.  At that point new models have come out and refurbished or even new older models of my phone are not much more than the $200 deductable so I cancel insurance and take my chances.

There are other options like ensquared, squaretrade, etc for cell phone insurance and it is cheaper than AT and T

[wingrider01 ACE - Expert]

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livingaboard wrote:

I would agree that the deductable  is ridiculous and I am speaking of the top tier $200 deductable because they send you refurbished crap without a battery, charger, etc.

The insurance price is expensive if you compare the cost of insurance to the cost of the phone and then compare that to other insurance types like cars, homes, etc

Unfortunately ,I am one of those people that work in a manufacturing environment and have broken  a few phones at work.  I have also left one at an airport one time.  

I have the Galaxy Note 2 now and that is going to cost me like $700 to replace if something happens to it.  My general rule is that I carry insurance for about the first year.  At that point new models have come out and refurbished or even new older models of my phone are not much more than the $200 deductable so I cancel insurance and take my chances.

There are other options like ensquared, squaretrade, etc for cell phone insurance and it is cheaper than AT and T

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dpwnsode to those places is you have another bill to pay AND they normally run the same deductable, personally I put a rider on my home owners insured - cost of replacement and 25.00 deducatable, all for 30.00 a year.

If in a year you expect to get a galaxy note for under 200.00 I think you are dreaming

[marylynndurfee]

Thank you. That's an excellent idea. Because AT&T was willing to give me a new phone if I did an upgrade and contracted for aother two years. I didn't want to be forced into that after paying for six years for insurance. I did get it resolved with AT&T directly - it's Asurion that has no code of ethics or how to work with a customer and they would never allow me to speak with a supervisor. I spoke to the Office of the President at AT&T and they were helpful, professional, and sympathetic and chose to keep me as a customer since I have been theirs since cell phones were invented! LOL! When I received the replacement phone and went to my local AT&T store (privately owned) they renewed my contract for two years without my permission and I got that cancelled. All of my utility companies are doing "mistakes" in their own favors these days - you gotta watch them - the integrity that used to exist just doesn't any longer. Or, it's technology and "mistakes" are so much easier to make. I hope it's the latter. Thanks for all the positive feedback!!!

[wingrider01 ACE - Expert]

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marylynndurfee wrote:

Thank you. That's an excellent idea. Because AT&T was willing to give me a new phone if I did an upgrade and contracted for aother two years. I didn't want to be forced into that after paying for six years for insurance. I did get it resolved with AT&T directly - it's Asurion that has no code of ethics or how to work with a customer and they would never allow me to speak with a supervisor. I spoke to the Office of the President at AT&T and they were helpful, professional, and sympathetic and chose to keep me as a customer since I have been theirs since cell phones were invented! LOL! When I received the replacement phone and went to my local AT&T store (privately owned) they renewed my contract for two years without my permission and I got that cancelled. All of my utility companies are doing "mistakes" in their own favors these days - you gotta watch them - the integrity that used to exist just doesn't any longer. Or, it's technology and "mistakes" are so much easier to make. I hope it's the latter. Thanks for all the positive feedback!!!

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marylynndurfee wrote:

Thank you. That's an excellent idea. Because AT&T was willing to give me a new phone if I did an upgrade and contracted for aother two years. I didn't want to be forced into that after paying for six years for insurance. I did get it resolved with AT&T directly - it's Asurion that has no code of ethics or how to work with a customer and they would never allow me to speak with a supervisor. I spoke to the Office of the President at AT&T and they were helpful, professional, and sympathetic and chose to keep me as a customer since I have been theirs since cell phones were invented! LOL! When I received the replacement phone and went to my local AT&T store (privately owned) they renewed my contract for two years without my permission and I got that cancelled. All of my utility companies are doing "mistakes" in their own favors these days - you gotta watch them - the integrity that used to exist just doesn't any longer. Or, it's technology and "mistakes" are so much easier to make. I hope it's the latter. Thanks for all the positive feedback!!!

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Asurion is a insurance underwriter, they are governed by federal and local laws like any insurnance company. As required by law everything that is on the insuance policy is documented from deductions to what can and cannot be done. All insurance companies have a code of ethics it may not be agreed by those that file claims, but they do have them

[marylynndurfee]

That's false and incorrect, because I called three or four times and was completely and utterly stonewalled by Asurion and was NEVER allowed to speak with a supervisor. That is unethical and unprofessional. It was like talking to country robots - "that's my story and I'm sticking to it" - was all I could get out of them. So don't defend them, when you weren't part of the conversation. I bet anyone who calls them with an issue like this will be treated the same way. 

[MicCheck]

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marylynndurfee wrote:

That's false and incorrect, because I called three or four times and was completely and utterly stonewalled by Asurion and was NEVER allowed to speak with a supervisor. That is unethical and unprofessional. It was like talking to country robots - "that's my story and I'm sticking to it" - was all I could get out of them. So don't defend them, when you weren't part of the conversation. I bet anyone who calls them with an issue like this will be treated the same way. 

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According to your original post, you didn't want to pay the deductible you agreed to when purchasing the insurance plan. If you refused to pay, there was no need to waste a "supervisor's" time, no reason to talk to you further. 

"That's my story and I'm sticking to it..." is sometimes called TELLING THE TRUTH. You can accept and move on or continue to be agree about it, but in either case, it's still the truth.

[marylynndurfee]

The deductible was $75 and then switched to $125 - that is unethical and called the old "bait and switch". They told me to upgrade my contract and get the phone for $50!! That is not INSURANCE code and ethics!!! That's extortion and fraud and the FCC agreed with me and I got a new phone and my insurance costs refunded - so go on to someone else and leave me alone. I had closed this as resolved already anyway.