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Teacher

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8 Messages

Thursday, May 25th, 2017 10:53 PM

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Asurion insurance a marketing scam

Asurion “insurance” (wink wink) is nothing more than a marketing scam. Let me explain how the scam works;

1) I purchase an iPhone 7 Plus in February for $800, and unknown at the time, a product with no effective warranty.

The AT&T sales people pitch the “Insurance” (wink wink), misrepresenting it as; “Any problem bring it in and we'll replace it (no mention of deductibles or no warranty for screen cracks.)

2) I purchase “Insurance” (wink wink) for $108 per year.

3) I file a claim 3 months into the contract because my phone has a defective cracked screen.

4) If I pay Asurion $225 to replace my 3 month old iPhone. I get a refurbished phone that they buy at an averaged wholesale cost of around $150.  Further, I may not even get a used iPhone, because Asurion says they have the right to replace the phone as they see fit with a "Like-kind make or model will be substituted, and color, features and accessory compatibility are not guaranteed".  Gee... why did I buy a iPhone? 

5) The “Insurance” company (wink wink) makes a $75 profit on the refurbished phone. Asurion also wants me return the defective phone, which they will have repaired for under $100, and sell it to some other sucker, making even more profit.

6) Thus, the $9.00 per month “Mobile Insurance Premium” is pure profit to the insurance (wink wink) company. They make money selling used phones, not providing insurance. I end up paying almost $1300 for my $800 non-warranty, top of the line iPhone. AT&T makes a profit,  Asurion makes a profit, and I take it in the rear!

 

7) Asurion offers a $89.99 screen repair program, but guess what, Not for my phone. Asurion actually told me that they could not repair the iPhone 7 plus because "This phone is too technologically advanced".  Yes, the Asurion representative actually said that.  

 

Anyone with a basic education knows that this is NOT INSURANCE. This is a marketing scam to make Asurion a guaranteed profit, while relieving Apple and AT&T of any responsibility for the products they sell. This borders on criminal fraud, misrepresentation by both Asurion and AT&T, and fraudulent advertising. Further, this industry-wide screen-cracking problem is clearly due to poor design and manufacturing by Apple and others, seemingly unable to provide a screen that can survive in the real world.

 

Personally, I've come to the conclusion that high end phones, like the iPhone, are a waste of money. I can buy a very good LG smart phone for under $100 which does everything I need. No need for "Insurance" since I can replace it for under $100. Let's see, if I add-up the cost of the iPhone, the cost of replacing the iPhone with a used one, (if I even get an iPhone), and the insurance premium for 30 months, my $800 iPhone actually cost  $1,295. What a deal.

Accepted Solution

ACE - Sage

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116.4K Messages

7 years ago

You could just not pay for insurance, and you would have to pay the full $800 and have to buy a new/replacement phone at full cost. (Wink wink because you poked your eye out to spite your face)

1.  Apple has an excellent warranty, but doesn't cover if you break the phone.

2.   Shall we talk car insurance too?  How much have you paid, versus how many claims?

3.   You have no contract.  You have a purchase agreement to buy a phone 

4.   You will get an iPhone 7, same specs, might not be the same color

5.   Well, yeah, it's a for profit business, like geico and Allstate 

6.  Already covered 

7.  Ditto

Bunch of nonsense.  Insurance has always been a for profit business.  You could be in the hole for $1600.   But facts might get in the way if you consider them.

FINALLY!!!!!  I don't use insurance, buy phones on installments or $800 phones.  This is the one thing you wrote that I agree with.   

 

 

Official Solution

ACE - Sage

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116.4K Messages

6 years ago

@MicCheck

 Yes, edit pending....🤭. Oops

 

ACE - Expert

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16.5K Messages

7 years ago


@AsurionStinks wrote:

Anyone with a basic education knows that this is NOT INSURANCE. This is a marketing scam to make Asurion a guaranteed profit,

That is their job, to MAKE A PROFIT. 

 

while relieving Apple and AT&T of any responsibility for the products they sell.

I'm sure people get pissed at Apple when they have Asurion problems. When they actually shouldn't..

 

This borders on criminal fraud, misrepresentation by both Asurion and AT&T, and fraudulent advertising.

If you don't read your policy, it borders on lack of personal responsibility.

 

Further, this industry-wide screen-cracking problem is clearly due to poor design and manufacturing by Apple and others, seemingly unable to provide a screen that can survive in the real world.

If you want a beautiful glass display where your finger seems to touch the dots, it's something you have to consider and you need to avoid putting it in your back pocket or dropping it BECAUSE IT'S GLASS!

 

Personally, I've come to the conclusion that high end phones, like the iPhone, are a waste of money.

Whew, is that the point? You don't need to buy iPhones? 

 

Some people like high end devices. You might drive a $50,000 car, but I'm happy with my $18,000 car. That's a personal choice.

 

You've really veered off the insurance topic...

 

 

 

ACE - Expert

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64.7K Messages

7 years ago

I don't think the insurance is a good product either and would never buy it myself, but it's not a scam. You know, you could have had Apple repair that cracked screen for a lot less than your deductible. Plus, if they repair it, I believe the warranty stays in force.

Mentor

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50 Messages

7 years ago

I broke my screen on my LG asurion replaced the phone for 149 dollars I have no problem with that since I broke the screen not LG or asurion.

Employee

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3.5K Messages

7 years ago

Insurance is optional. First of all I'd like to see someone name me an insurance product that doesn't include monthly premiums and deductibles. Because that's the standard in insurance. Car, home, renters, etc.

 

I pay my car insurance every month but I don't expect that monthly premium to "bank" some kind of monetary value that nets me discounted claims. Doesn't work that way. The premium is paid so I can have the chance to get a repair and cover any damage I may cause at a discounted rate.

Teacher

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8 Messages

7 years ago

Hi David,

 

The legal definition of "Insurance" requires that there be a shared risk, between the insurance company and the insured. There is no shared risk with Asurion. The make money whether you file a claim or not. That is not insurance.

 

Asurion if a used phone re-seller. Your are paying $9 per month for the right to purchase one used phone (possibly not even an iPhone) for $225. You pay your home owners insurance. If you're house burns down the shared risk kicks-in. You pay your $1,000 deductible, and the insurance company pays the rest, they don't sell you a different used house for a profit. There is no shared risk here and therefore this is not an insurance program... and therefore the representation of it as an insurance program is misleading and false. 

 

Please keep in mind that no phones are replaced with NEW phones. Asurion confirmed this when their management told me that "we can't replace with new iPhones because they may not be available". Yes, he actually said that????

 

Further, they have the right to replace your phone with a "like-kind make or model, color, features, and accessory compatibility are not guaranteed. 

 

Onto topic two... the fact that we were lied to by AT&T about all of this, and other matters as well. They hyped the insurance as "Anything happens just bring it back and we'll replace it." That was a lie and in itself is grounds for the cancellation of all contracts without harm. It also would have been nice to know that any warranty is through Apple, where you can get Apple Care for $124 per year with replacement and repair costs 60-80% less than Asurion. Guess they missed that fact while counting their commissions. 

ACE - Expert

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16.5K Messages

7 years ago


@AsurionStinks wrote:

The legal definition of "Insurance" requires that there be a shared risk, between the insurance company and the insured. 

Please source your definition  of insurance for me, PLEASE. I looked up a few and that phrase didn't come up when googling "define insurance" or "legal definition of Insurance"Screen Shot 2017-05-25 at 9.55.42 PM.pngfrom Cornell.edu

Asurion if a used phone re-seller. Your are paying $9 per month for the right to purchase one used phone (possibly not even an iPhone) for $225. You pay your home owners insurance. If you're house burns down the shared risk kicks-in. You pay your $1,000 deductible, and the insurance company pays the rest, they don't sell you a different used house for a profit. There is no shared risk here and therefore this is not an insurance program... and therefore the representation of it as an insurance program is misleading and false. 

No, 'Shared Risk' Is Not How Insurance Works

https://pjmedia.com/trending/2017/03/16/no-shared-risk-is-not-how-insurance-works/

 

 

Please keep in mind that no phones are replaced with NEW phones. Asurion confirmed this when their management told me that "we can't replace with new iPhones because they may not be available". Yes, he actually said that????

Their statement does NOT confirm your statement.

 

I'm pretty confident they sometimes replace with new phones. When they can't get refurbs, say when a phone is brand new.

 

Further, they have the right to replace your phone with a "like-kind make or model, color, features, and accessory compatibility are not guaranteed. 

This is all in the policy. 

 

in itself is grounds for the cancellation of all contracts without harm.

You can cancel your insurance at any time.  There is nothing stopping you.

 

 

 

1 Attachment

ACE - Sage

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116.4K Messages

7 years ago

If by shared risk you mean Asurion might have to pay out more than they took in, they absolutely do have a shared risk.

If someone loses their brand new $800 iphone 7 after paying only one month of premiums, they paid in $9, plus $225 and get an almost new iphone 7 back from Asurion.  Asurion loses on this deal.  

FYI Asurion also offers a mobile protection pack which covers other devices.  A friend of mine paid $66 deductible and got a check for $1,500 to replace her Mac book air that her daughter spilled coffee on.  

Because the incidents of loss of laptops is lower, the payoff and deductibles is less risk for Asurion and better coverage for customers.

 

Teacher

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8 Messages

7 years ago

I do not understand how you are missing the point and defending Asurion and
AT&T.

First of all you will not get a NEW iPhone 7, you will get a refurbished
phone, and at Asurion's discretion it may not even be an iPhone. (read the
fine print)

Shared Risk is based upon the concept that if you sell 1000 policies, only
a small number of claims will be filed, and the insurance company makes
their profit on the difference, and the investments of the funds on hand.
That's how insurance works.

Asurion does not pay Apple or AT&T $800 for a new phone, that's the retail
price. Frankly they purchase very few new phones, because they make their
money selling you a used phone instead. For them there is no risk. They
make a profit selling you a used phone, and they make a profit on the
"Insurance Premium", there is no risk, they win either way. Therefore IT
IS NOT INSURANCE!

Please understand I have no problem with Asurion making money, but when you
make money through lies, deceptions, and misrepresentations, that's where I
draw the line.

Please also understand that (at least in my case) we have to date received
nothing from Asurion. Not a policy, not a letter, nothing, nor were we
given that information when we signed with AT&T.

Retailers most definitely have a responsibility regarding the products they
sell. If you buy a car, do you return it to the manufacturer for warranty
service? You return to the dealership where you bought the car. I will be
canceling Asurion in the next 24 hours. Why anyone would take the Asurion
program over Apple Care (which we just found out about) is beyond me. If I
had been told that by AT&T at the time this started (last February),
instead of their self serving lies, none of this would have happened.

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