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Posted Jan 22, 2014
7:55:39 AM
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Insurance deductable

Purchased an insurance plan for my new LG G2 phone. Sounded great that my phone was protected against accidental damage for a premium of 6.99 a month but was never told about the 199.00 dollar deductable ! Nice scam from AT&T after being a customer for as long as AT&T has been in business !

So now this phone is gonna cost me 900 dollars. The shame on me is that I was gonna leave AT&T and go with a trac phone or straight talk for less than 50 dollars a month! My mind is made up when my plan is done so am I with AT&T Overpriced for nothing better than a 50 dollar plan. Thanks AT&T for respecting me as a loyal customer!

Purchased an insurance plan for my new LG G2 phone. Sounded great that my phone was protected against accidental damage for a premium of 6.99 a month but was never told about the 199.00 dollar deductable ! Nice scam from AT&T after being a customer for as long as AT&T has been in business !

So now this phone is gonna cost me 900 dollars. The shame on me is that I was gonna leave AT&T and go with a trac phone or straight talk for less than 50 dollars a month! My mind is made up when my plan is done so am I with AT&T Overpriced for nothing better than a 50 dollar plan. Thanks AT&T for respecting me as a loyal customer!

Insurance deductable

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Jan 22, 2014 8:46:44 AM
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Unfortunately this is common problem with AT&T. The salesperson is supposed to make sure you are fully aware of the deductible at point of sale, however they regularly fail to do so, probably because they know many people will not want to pay a $200 deductible on top of $7 per month premium on a phone they are paying $200-300 for. And yes I know that's a "subsidized" price, but the point is the deductible is higher than the amount paid for the phone, and that's unreasonable to most people.
Unfortunately this is common problem with AT&T. The salesperson is supposed to make sure you are fully aware of the deductible at point of sale, however they regularly fail to do so, probably because they know many people will not want to pay a $200 deductible on top of $7 per month premium on a phone they are paying $200-300 for. And yes I know that's a "subsidized" price, but the point is the deductible is higher than the amount paid for the phone, and that's unreasonable to most people.

Re: Insurance deductable

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Jan 22, 2014 12:07:33 PM
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Employee

Yeah kpryan1982, I see that a lot. Never mind, that they would've paid more without the insurance, but it's definetly hard for people envision the ~$400 discount AT&T provided with a contract that they expect to pay back over 2 years, and of course would never pay the non-discount rate. In some ways, I see people not respect the phones as much because they treat them like they're really only $100 devices

 

If you really think that insurance is a rip off, cancel it, considering the $50-100 you paid over the months as a write off and look at the alterntives.

-Alex

Yeah kpryan1982, I see that a lot. Never mind, that they would've paid more without the insurance, but it's definetly hard for people envision the ~$400 discount AT&T provided with a contract that they expect to pay back over 2 years, and of course would never pay the non-discount rate. In some ways, I see people not respect the phones as much because they treat them like they're really only $100 devices

 

If you really think that insurance is a rip off, cancel it, considering the $50-100 you paid over the months as a write off and look at the alterntives.

-Alex

*I am an AT&T employee and the postings on this site are my own and don’t necessarily represent AT&T’s position, strategies or opinions.
*I am an AT&T employee and the postings on this site are my own and don’t necessarily represent AT&T’s position, strategies or opinions.

Re: Insurance deductable

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Jan 22, 2014 12:41:13 PM
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No, AT&T doesn't provide you with a $400 discount, they package a service contract with the phone. It's not a discount, it's not subsidized. To be fair to the consumer, their signature on the contract provides most of the value of the transaction.

The point is that from the consumers perspective, you're already worried about throwing money away when you sign up for insurance. What are the chances that you actually need a replacement phone? And if they don't know about the deductible, they're bound to make a regrettable decision. Att doesn't seem to care as long as they collect as much money as possible with no regard for customer satisfaction.
No, AT&T doesn't provide you with a $400 discount, they package a service contract with the phone. It's not a discount, it's not subsidized. To be fair to the consumer, their signature on the contract provides most of the value of the transaction.

The point is that from the consumers perspective, you're already worried about throwing money away when you sign up for insurance. What are the chances that you actually need a replacement phone? And if they don't know about the deductible, they're bound to make a regrettable decision. Att doesn't seem to care as long as they collect as much money as possible with no regard for customer satisfaction.

Re: Insurance deductable

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Jan 22, 2014 3:30:26 PM
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Edited by Eileen89 on Jan 22, 2014 at 3:31:22 PM

So is it the amount or the deductible itself that is upsetting you? If it's the deductible itself, then I really don't understand your anger toward AT&T.  I do not know of any insurance that doesn't have a deductible of some amount. If you need/want wireless phone insurance you simply have to accept the fact that a deductible goes along with it....

So is it the amount or the deductible itself that is upsetting you? If it's the deductible itself, then I really don't understand your anger toward AT&T.  I do not know of any insurance that doesn't have a deductible of some amount. If you need/want wireless phone insurance you simply have to accept the fact that a deductible goes along with it....

Re: Insurance deductable

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Jan 23, 2014 2:35:34 AM
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Eileen, it's the fact that OP was misled by the salesperson. OP was told cost of insurance was $7/mo. But the deductible makes up most of the cost of insurance. Salesperson should state in no uncertain terms what the cost of insurance is, ie premiums plus deductible, before signing the customer up. The salesperson failed to do this In OPs case. Its very reasonable for OP to be upset, in fact he should be, don't see how any could fail to understand that.
Eileen, it's the fact that OP was misled by the salesperson. OP was told cost of insurance was $7/mo. But the deductible makes up most of the cost of insurance. Salesperson should state in no uncertain terms what the cost of insurance is, ie premiums plus deductible, before signing the customer up. The salesperson failed to do this In OPs case. Its very reasonable for OP to be upset, in fact he should be, don't see how any could fail to understand that.

Re: Insurance deductable

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Jan 23, 2014 3:24:46 AM
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ACE - Professor

kpryan1982 wrote:
Eileen, it's the fact that OP was misled by the salesperson. OP was told cost of insurance was $7/mo. But the deductible makes up most of the cost of insurance. Salesperson should state in no uncertain terms what the cost of insurance is, ie premiums plus deductible, before signing the customer up. The salesperson failed to do this In OPs case. Its very reasonable for OP to be upset, in fact he should be, don't see how any could fail to understand that.

I can understand being a little upset that the rep didn't specifically mention the deductible.

 

However, like Eileen said, insurance deductibles are common, so it's not like this is a foreign concept. Also, the full terms of insurance are readily available, so unless the customer needed to use their insurance the minute they stepped out of the store, the full blame of the lack of information can not be place on the rep. 


kpryan1982 wrote:
Eileen, it's the fact that OP was misled by the salesperson. OP was told cost of insurance was $7/mo. But the deductible makes up most of the cost of insurance. Salesperson should state in no uncertain terms what the cost of insurance is, ie premiums plus deductible, before signing the customer up. The salesperson failed to do this In OPs case. Its very reasonable for OP to be upset, in fact he should be, don't see how any could fail to understand that.

I can understand being a little upset that the rep didn't specifically mention the deductible.

 

However, like Eileen said, insurance deductibles are common, so it's not like this is a foreign concept. Also, the full terms of insurance are readily available, so unless the customer needed to use their insurance the minute they stepped out of the store, the full blame of the lack of information can not be place on the rep. 

*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Re: Insurance deductable

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Jan 23, 2014 5:00:43 AM
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The problem is that this happens all the time. They can't sell this insurance in an honest way, because the deductible is unreasonably high. For one salesperson to mess up one time is understandable. That's not what we are talking about here- we are talking about a product that's being sold through deception on regular basis. It's a shame.
The problem is that this happens all the time. They can't sell this insurance in an honest way, because the deductible is unreasonably high. For one salesperson to mess up one time is understandable. That's not what we are talking about here- we are talking about a product that's being sold through deception on regular basis. It's a shame.

Re: Insurance deductable

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Jan 23, 2014 6:29:20 AM
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ACE - Professor

kpryan1982 wrote:
The problem is that this happens all the time. They can't sell this insurance in an honest way, because the deductible is unreasonably high. For one salesperson to mess up one time is understandable. That's not what we are talking about here- we are talking about a product that's being sold through deception on regular basis. It's a shame.

How is the deductible unreasonably high? For most people, it's about the same amount they would pay if they were to get an upgrade price on another device.

 

If you'll pay AT&T $200 for an iPhone 5 (for example) as soon as it's released, I don't see how it's unreasonable to pay $200 to replace it if you drop it in the toilet (speaking from experience here...)


kpryan1982 wrote:
The problem is that this happens all the time. They can't sell this insurance in an honest way, because the deductible is unreasonably high. For one salesperson to mess up one time is understandable. That's not what we are talking about here- we are talking about a product that's being sold through deception on regular basis. It's a shame.

How is the deductible unreasonably high? For most people, it's about the same amount they would pay if they were to get an upgrade price on another device.

 

If you'll pay AT&T $200 for an iPhone 5 (for example) as soon as it's released, I don't see how it's unreasonable to pay $200 to replace it if you drop it in the toilet (speaking from experience here...)

*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.

Re: Insurance deductable

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Jan 23, 2014 6:50:08 AM
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It's unreasonable because you're paying to insure the device. Keep in mind most people with insurance never file a claim. You pay the $200 deductible on top of your premiums. The deductible alone is the same amount you paid for the device in the first place. If its not unreasonable, why do att employees regularly fail to inform the customer of the deductible at point of sale?
It's unreasonable because you're paying to insure the device. Keep in mind most people with insurance never file a claim. You pay the $200 deductible on top of your premiums. The deductible alone is the same amount you paid for the device in the first place. If its not unreasonable, why do att employees regularly fail to inform the customer of the deductible at point of sale?

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Jan 23, 2014 7:36:18 AM
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Edited by Eileen89 on Jan 23, 2014 at 7:36:55 AM

kpryan1982 wrote:
It's unreasonable because you're paying to insure the device. Keep in mind most people with insurance never file a claim. You pay the $200 deductible on top of your premiums. The deductible alone is the same amount you paid for the device in the first place. If its not unreasonable, why do att employees regularly fail to inform the customer of the deductible at point of sale?

The OP should have received the terms of service for the Insurance at the point of sign up, if not, they are clearly listed on AT&T's website. While I agree with you that the OP should have been informed of the deductable amount for the device, I believe that it is also the customers responseability to look into what they are signing up for as well. Most of the corporate AT&T stores that I've gone to all have pamflits that explain the TOS as well as the overall cost of the insurance. 


kpryan1982 wrote:
It's unreasonable because you're paying to insure the device. Keep in mind most people with insurance never file a claim. You pay the $200 deductible on top of your premiums. The deductible alone is the same amount you paid for the device in the first place. If its not unreasonable, why do att employees regularly fail to inform the customer of the deductible at point of sale?

The OP should have received the terms of service for the Insurance at the point of sign up, if not, they are clearly listed on AT&T's website. While I agree with you that the OP should have been informed of the deductable amount for the device, I believe that it is also the customers responseability to look into what they are signing up for as well. Most of the corporate AT&T stores that I've gone to all have pamflits that explain the TOS as well as the overall cost of the insurance. 

Re: Insurance deductable

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Jan 23, 2014 7:55:13 AM
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Yes it's good habit to read the fine print on any deal. But the truth is its not the habit for average consumers. Often times they will ask a salesperson what the cost of a product is and take their word for it.

Of course AT&T and Asurion and their salespeople know exactly what the habits of the average consumer are and they exploit that in the way they sell the insurance, which costs more than twice what the salesperson said it does. Deception is a bad customer service practice, att should be ashamed.
Yes it's good habit to read the fine print on any deal. But the truth is its not the habit for average consumers. Often times they will ask a salesperson what the cost of a product is and take their word for it.

Of course AT&T and Asurion and their salespeople know exactly what the habits of the average consumer are and they exploit that in the way they sell the insurance, which costs more than twice what the salesperson said it does. Deception is a bad customer service practice, att should be ashamed.

Re: Insurance deductable

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