Phone insurance

Phone insurance

Phone insurance is a scam. Over the years I have paid over a thousand dollars for insurance and I have never made a claim. The other day I busted my iPhone screen. The deductible is more than two times the cost of having the screen fixed on my phone. What have I been paying insurance for. It is nothing more than a money making scheme.
Message 2 of 16 (1,859 Views)

AT&T

AT&T does not appreciate your business. They used to. Now they are a greedy corporation who could care less about loyal customers. Go phone participants recieve more breaks and respect than long term loyal customers. My contract will be up in August; thank God!!!
Message 1 of 16 (1,226 Views)
ACE - Professor

Re: Phone insurance


Joelsalter69 wrote:
Phone insurance is a scam. Over the years I have paid over a thousand dollars for insurance and I have never made a claim. The other day I busted my iPhone screen. The deductible is more than two times the cost of having the screen fixed on my phone. What have I been paying insurance for. It is nothing more than a money making scheme.

That is exactly what any insurance is. If it wasn't a "money making scheme", insurance companies wouldn't be in business. If you don't feel the risk of loss in case of damage or theft is worth the monthly premium, then drop the insurance. 

*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.
Message 3 of 16 (1,172 Views)
Anonymous

Re: Phone insurance

Next time don't purchase the insurance through AT&T or any carrier.

 

Use Worth Avenue Group. 

 

You can insure $400 for like $40 a year with a $50 deductible. 

 

I don't work for them but I do insure through them.

 

 

 

 

Message 4 of 16 (1,146 Views)
Expert

Re: Phone insurance


Todd F wrote:

Next time don't purchase the insurance through AT&T or any carrier.

 

Use Worth Avenue Group. 

 

You can insure $400 for like $40 a year with a $50 deductible. 

 

I don't work for them but I do insure through them.

 

 

 

 


Kind of curious - did you read the policy coverage and the specific state overrides, not to mention doing a review of ratings on the company beyond the usless BBB?

Message 5 of 16 (1,118 Views)
Anonymous

Re: Phone insurance

[ Edited ]

I've gone through the policy very closely. Nothing in there that would stop me from buying again. Pretty much common sense stuff like no coverage if you leave your car unlocked and the device is stolen or you lose it. This is damage and theft insurance.

 

Reviews? Try checking out the reviews for Asurion or whoever the carriers use. 

 

The policy I received from Worth has nothing regarding state overrides. 

 

Do you know something that I dont?

 

Message 6 of 16 (1,091 Views)
Expert

Re: Phone insurance


Todd F wrote:

I've gone through the policy very closely. Nothing in there that would stop me from buying again. Pretty much common sense stuff like no coverage if you leave your car unlocked and the device is stolen or you lose it. This is damage and theft insurance.

 

Reviews? Try checking out the reviews for Asurion or whoever the carriers use. 

 

The policy I received from Worth has nothing regarding state overrides. 

 

Do you know something that I dont?

 


Funny they did not include them with the main policy - go to their website, look for the pdf versions of the policy, there are state overrides there. 

 

 

Message 7 of 16 (1,083 Views)
Anonymous

Re: Phone insurance

Here's the link for Worth's policys and state amendments:

 

http://www.worthavegroup.com/resources/policy-booklets/

 

I live in Ohio and this is the wording for amendment:

 

 

AMENDATORY ENDORSEMENT OHIO


1. Under Fraud and Misrepresentation, the section is deleted and replaced by the following:

This policy will not provide coverage if you mislead us, attempt to defraud us, or lie to us about
any matter concerning the insurance, either before or after a loss. Any person who, with intent to
defraud or knowing that he/she is facilitating a fraud against an insurer, submits an application or files
a claim containing a false or deceptive statement is guilty of insurance fraud. Unintentional errors or
oversights will not affect your coverage.

Message 8 of 16 (1,063 Views)
Mentor

Re: Phone insurance

Device insurance is indeed a scam. The fact that a thread like this gets started twice monthly, and yet AT&Ts typical response is "you should've read the fine print" just shows their complete disregard for customer satisfaction. Pay the shareholders. Do the bare minimum amount of customer service. That's att's policy. Pathetic.
Message 9 of 16 (994 Views)
ACE - Professor

Re: Phone insurance


kpryan1982 wrote:
Device insurance is indeed a scam. The fact that a thread like this gets started twice monthly, and yet AT&Ts typical response is "you should've read the fine print" just shows their complete disregard for customer satisfaction. Pay the shareholders. Do the bare minimum amount of customer service. That's att's policy. Pathetic.

Those threads get created because  people think phone insurance should be a 'magic fairy' that replaces the phone at the drop of the hat. No other insurance policy for anything acts that way; why should phone insurance?

 

Indeed, a lot of the problems folks have with phone insurance is because of their misconception of what the insurance actually is, and, yes, that could be solved if people actually read the policy and made an informed decision about whether the insurance is right for them. 

*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.
Message 10 of 16 (963 Views)
Highlighted
Mentor

Re: Phone insurance

Wrong. Read the threads. They almost universally are created because the customer was mislead by the salesperson. Why is it so common for salespeople to mislead customers on the cost of insurance?

Simple answer: because it's the only way to sell it. Sure, a few customers might still sign up even if they were aware of the deductible. But the majority would turn it down. When you're paying more in premiums and deductibles than it actually cost to repair a phone, you're being ripped off, plain and simple. Also, most customers don't know there are alternative vendors for phone insurance.

Here's the point: ATTs phone insurance is simply a way to profit on consumer ignorance. That's a horrible way to do business. It's legal, and uninformed customers are partly to blame for their own ignorance. But the simple fact is that ATTs approach to selling phone insurance is dishonest and exploitative.

It's a shame.

Message 11 of 16 (955 Views)
Employee

Re: Phone insurance

[ Edited ]

Insurance, IMO is a decent deal, but not world shattering.

 

Figure you might do 1/replacement in a 2 year period.

Let's say you have full insurancen $9.99.month

$9.99 x 24 = ~$240

Expensive phone deductible ~$200

So you end up paying ~ $450

Average cost for a new expensive phone w/o contract ~$600

 

About $100-300 savings, not bad, and easier to budget. It's not earth shattering, but it's not bad either.

You're right that those things should have disclosed. It's not intented to be a scam, at least according to the insurance company

 

-Alex

 

Employee Contributor*
*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.
Message 12 of 16 (947 Views)
Expert

Re: Phone insurance


kpryan1982 wrote:
Wrong. Read the threads. They almost universally are created because the customer was mislead by the salesperson. Why is it so common for salespeople to mislead customers on the cost of insurance?

Simple answer: because it's the only way to sell it. Sure, a few customers might still sign up even if they were aware of the deductible. But the majority would turn it down. When you're paying more in premiums and deductibles than it actually cost to repair a phone, you're being ripped off, plain and simple. Also, most customers don't know there are alternative vendors for phone insurance.

Here's the point: ATTs phone insurance is simply a way to profit on consumer ignorance. That's a horrible way to do business. It's legal, and uninformed customers are partly to blame for their own ignorance. But the simple fact is that ATTs approach to selling phone insurance is dishonest and exploitative.

It's a shame.


what you say is true about all insurance, not just phone insurance, all insurance is a scam. Consumer ingnorance is a false statement also, if people would read what they sign there would be no consumer ignorance.  They are not trying to hide it, there are brochures at the register in a corporate store, it is well documented on att's web site. Heck Best Buys black tie protection plan on phones are a joke also if you take the time to read everything

Message 13 of 16 (927 Views)
ACE - Professor

Re: Phone insurance


kpryan1982 wrote:
Wrong. Read the threads. They almost universally are created because the customer was mislead by the salesperson. Why is it so common for salespeople to mislead customers on the cost of insurance?

Simple answer: because it's the only way to sell it. Sure, a few customers might still sign up even if they were aware of the deductible. But the majority would turn it down. When you're paying more in premiums and deductibles than it actually cost to repair a phone, you're being ripped off, plain and simple. Also, most customers don't know there are alternative vendors for phone insurance.

Here's the point: ATTs phone insurance is simply a way to profit on consumer ignorance. That's a horrible way to do business. It's legal, and uninformed customers are partly to blame for their own ignorance. But the simple fact is that ATTs approach to selling phone insurance is dishonest and exploitative.

It's a shame.


I think you're taking a few threads on a forums designed for customers with problems and extrapolating meaning that isn't there. 

 

Have salespeople lied or otherwise misled customers about insurance? I'm  sure. Is that the norm? No. Is that the sales model AT&T has set up? No. I was in an AT&T store on Friday and overheard the rep clearly explaining the costs and deductible associated with insurance. 

*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.
Message 14 of 16 (891 Views)
Employee

Re: Phone insurance


MicCheck wrote:

kpryan1982 wrote:
Wrong. Read the threads. They almost universally are created because the customer was mislead by the salesperson. Why is it so common for salespeople to mislead customers on the cost of insurance?

Simple answer: because it's the only way to sell it. Sure, a few customers might still sign up even if they were aware of the deductible. But the majority would turn it down. When you're paying more in premiums and deductibles than it actually cost to repair a phone, you're being ripped off, plain and simple. Also, most customers don't know there are alternative vendors for phone insurance.

Here's the point: ATTs phone insurance is simply a way to profit on consumer ignorance. That's a horrible way to do business. It's legal, and uninformed customers are partly to blame for their own ignorance. But the simple fact is that ATTs approach to selling phone insurance is dishonest and exploitative.

It's a shame.


I think you're taking a few threads on a forums designed for customers with problems and extrapolating meaning that isn't there. 

 

Have salespeople lied or otherwise misled customers about insurance? I'm  sure. Is that the norm? No. Is that the sales model AT&T has set up? No. I was in an AT&T store on Friday and overheard the rep clearly explaining the costs and deductible associated with insurance. 


I for one clearly explain it to every customer. Approximately 60% of customers take the insurance...

Employee Contributor*
*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.
Message 15 of 16 (844 Views)
Share this topic
Announcements

Welcome to the AT&T Community Forums!!! Stop by the Community How-To section for tips on how to get started.