Insurance for the iPhone – not a good deal for everyone

At the beginning of 2010, AT & T announced that it will provide an insurance plan for all new iPhone devices . The plan is $ 13.99 a month and will have to sign up for a new iPhone within 30 days. The announcement was a great news for iPhone owners, who were shocked by the lack of assurance of tools. For me, the announcement lost its glitter when I realized what this bad business was.

First, let's talk about what the insurance is. It's quiet, just up. You agree to pay money to a company and do not receive any products or services in return . All you get is the promise that the insurer will pay in case of a loss. Often, the losses may be intense (eg Flood, sudden death or home fire). However, as these events have not been formally reported statistically and insurance companies know, the cost of such calm is low in cost to be of good value.

But what if some kind of loss occurs more often (for example, a cracked iPhone screen or an auto accident by a teenager)? What does this insurer do? Well, the charges are higher because there is a greater likelihood that there will be a loss. If the insurer does not meet the prizes to a fairly high level, the insurer will go out of business.

So, how much is the peace of mind for the $ 600 or $ 700 iPhone that is more often paused and spends more than many other smartphones? Well, this price I do not think is a good deal. First, for $ 11.99, the charges alone cost $ 287.76 for the duration of a two-year contract. Additionally, if you have an iPhone 4 with any size of memory or or with an iPhone 3GS memory of anything more than 16 GB, you have to pay a deductible $ 199 to replace the damaged device before you get a replacement. A total of $ 486.76. This is a tremendous amount to provide a phone that costs $ 700 on the market for the most expensive 4th generation iPhone and $ 600 for the next model. The 3GS iPhone will do even less.

Why not take advantage of the iPhone repair company instead of paying such a high insurance premium? A simple Google search shows that many reputable companies are involved in improving iPhone . You can fix a cracking 4th generation iPhone screen for $ 199. Many of these companies completely renew the 3GS iPhone for less than $ 199. And saved $ 11.99 a month.

Remember, you may also be eligible for a biennial upgrade at the time you actually broke your phone, which would make it possible to switch iPhone only after another two-year contract and $ 199. you can still get another model.

The point is, before you release a sales representative from your insurance report, make sure that this calm is worth the cost of your lifestyle. Measure costs against risk. AT & T has promised to offer insurance sales and always recommends it. AT & T does not improve the tools and pay no money if customers know they can improve their phones elsewhere. It increases the monthly premium, and if you're a person who does not usually break electronics or lose things, your money is wasted.

Source by Clyde Cooper

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