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AT&T's iPhone insurance to cost twice as much as SquareTrade

post #1 of 52
Thread Starter 
When the iPhone appeared, AT&T excluded it from its standard phone hardware insurance plan. Now it appears the company is ready to launch a plan specifically for the iPhone, at a rather steep $13.99 per month, significantly higher than third party warranties available from SquareTrade.

AT&T's new plan, underwritten by Asurion and branded "MobileProtect," was detailed in a report by BGR.

Expected to launch June 6, apparently alongside the new iPhone 4, the $13.99 plan must be purchased within 30 days of buying new hardware. It also carries a deductible of $99 to $199 depending on the model purchased.

Over the 24 month contract of a new phone, the plan would cost $335.76, which added to the $199 deductible of a 32GB iPhone 3GS would eventually cost $534.99, an expensive plan for a device that costs $699 to replace.

AT&T's MobileProtect extends AppleCare-style coverage of mechanical and electrical failures for two years and adds coverage for accidental damage (including drops and spills), loss and theft.

AT&T vs SquareTrade

In comparison, SquareTrade's third party warranties for iPhones cost either up to $9.99 per month, or when purchased in advance, $144 for 24 months of coverage (a 50% savings over paying monthly premiums, and less than half the AT&T plan's cost).

SquareTrade similarly extends the AppleCare-style coverage for two years, and adds two years of protection from drops and liquid spills (including humidity and full accidental submersion), damage AppleCare does not cover.

Unlike AT&T's plan, SquareTrade warranties do not cover lost or stolen devices; some homeowner's or renter's insurance policies may cover theft or environmental damage, but few cover accidental loss or disappearance.

Claims based on accidental damage (drops or spills) are subject to a $50 deductible under the SquareTrade plan, while problems related to mechanical or electrical failure from normal wear and tear have no deductible. The plan will also replace iPhone users' batteries if they drop below 50% of life during the coverage period.

The company provides a free UPS return label to send in a damage iPhone and will either repair and return or reimburse the user the replacement cost up to the rated value of the phone they have paid to cover (up to $499 for the 32GB iPhone) within five days of reciept.

SquareTrade warranties can be purchased up to 90 days after the phone is bought from an authorized iPhone outlet, and are also available for used iPhones purchased through eBay.

SquareTrade also offers a coverage plan for iPad with a 2 or 3 year term that costs from $96 to $136, a 20% off introductory special.
post #2 of 52
Do people not realize you can replace any iPhone for a flat $199 fee no matter what happened to it? I got my 32gb 3GS wet and paid $199 to get an out of warranty replacement from my local Apple Store.
post #3 of 52
Quote:
Originally Posted by payeco View Post

Do people not realize you can replace any iPhone for a flat $199 fee no matter what happened to it? I got my 32gb 3GS wet and paid $199 to get an out of warranty replacement from my local Apple Store.

You return the damaged one I assume. What happens if it is stolen and you have no return iPhone does this still hold?
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post #4 of 52
Quote:
Originally Posted by payeco View Post

Do people not realize you can replace any iPhone for a flat $199 fee no matter what happened to it? I got my 32gb 3GS wet and paid $199 to get an out of warranty replacement from my local Apple Store.

Apple will not replace it if the iPhone is completely damaged. From Apple:

Quote:
For example, an iPhone that has failed due to damage or liquid damage is eligible for Out-of-Warranty service. However, certain damage is ineligible for OOW service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications.

The only reason I would get an insurance is for lost/stolen coverage. However, I never lost a phone before.
post #5 of 52
Will this cover your prototype 4g iPhone if it gets stolen by a douche that sells it to Gizmodo?
post #6 of 52
Quote:
Originally Posted by NasserAE View Post

Apple will not replace it if the iPhone is completely damaged. From Apple:



The only reason I would get an insurance is for lost/stolen coverage. However, I never lost a phone before.

I guess Gray Powell never had "loss" insurance for his iPhone (prototype) either! ;-)
post #7 of 52
Quote:
Originally Posted by AppleInsider View Post

Over the 24 month contract of a new phone, the plan would cost $335.76, which added to the $199 deductible of a 32GB iPhone 3GS would eventually cost $534.99, an expensive plan for a device that costs $699 to replace.

expensive because although it's being marketed as an insurance plan it is not. it really is just another way for at&t to bring in more revenue. i'm interested in seeing the studies that were done that show just how much net profit at&t stands to make off this. they wouldn't be offering it if they were going to lose money. they have oodles and oodles of numbers showing expected uptake, claims, etc. and they know they're going to turn a profit.

oodles and oodles.
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post #8 of 52
Quote:
Originally Posted by johnboi1978 View Post

Will this cover your prototype 4g iPhone if it gets stolen by a douche that sells it to Gizmodo?

Why, yes! Courtesy of Gizmodo, after the court order!
post #9 of 52
Many will try to argue the opposite but they won't be able to find facts to back them up. Most people would be better off putting the mony they spend on warranties in the bank.

Avoid third part warranties like a sick hooker, you will thank yourself.


Dave
post #10 of 52
why don't we have this kind of insurance in quebec, canada
post #11 of 52
Quote:
Originally Posted by wizard69 View Post

Many will try to argue the opposite but they won't be able to find facts to back them up. Most people would be better off putting the mony they spend on warranties in the bank.

Avoid third part warranties like a sick hooker, you will thank yourself.


Dave

Hey, some of my best friends are hookers!
post #12 of 52
To those that want it I'm glad it's available from a couple vendors, but I haven't damaged any of my 3 iPhones despite repeated droppings so I'll take my changes with the G4 iPhone.
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post #13 of 52
More expensive to insure. More expensive to get out of the contract. Seems like there is a pattern here. Wonder how much extra it will cost to tether my MacBook to my iPhone's unlimited data plan?

Oh well. If this is the way Apple wants it, then it will be accepted and defended by most of the community here.
post #14 of 52
Quote:
Originally Posted by Jerseymac View Post

More expensive to insure. More expensive to get out of the contract. Seems like there is a pattern here. Wonder how much extra it will cost to tether my MacBook to my iPhone's unlimited data plan?

Oh well. If this is the way Apple wants it, then it will be accepted and defended by most of the community here.

Besides the clear fact that most countries don't allow you to tether any and all devices you wish for the same unlimited data price, nothing you have complained about is the result of Apple's doing. AT&T raised the ETF, AT&T is charging for the insurance and AT&T is the one that makes you sign a contract saying that you'll only use their data on that device. This shouldn't be that hard to understand.
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post #15 of 52
Quote:
Originally Posted by solipsism View Post

besides the clear fact that most countries don't allow you to tether any and all devices you wish for the same unlimited data price, nothing you have complained about is the result of apple's doing. At&t raised the etf, at&t is charging for the insurance and at&t is the one that makes you sign a contract saying that you'll only use their data on that device. This shouldn't be that hard to understand.

you better work!!!!
post #16 of 52
And to ALL THE APPLE HATERS UP IN HERE FOAMING AT THE MOUTH
AND DRINKING THE HATERADE GET YOUR FACTS STRAIGHT AND ATTACK THE REAL ENEMY

AT&T those greedy bloodsuckers I can't wait until they lose EXCLUSIVITY
post #17 of 52
Quote:
Originally Posted by Intense View Post

why don't we have this kind of insurance in quebec, canada

Pretty sure Best Buy will take money from any idiot willing to buy their extended coverage.

Didn't mean to imply you were an idiot. I am sure you would never buy it.

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post #18 of 52
Quote:
Originally Posted by AppleInsider View Post

Over the 24 month contract of a new phone, the plan would cost $335.76, which added to the $199 deductible of a 32GB iPhone 3GS would eventually cost $534.99, an expensive plan for a device that costs $699 to replace.

Seems like you're thinking that even if your phone is stolen, you'd already given AT&T most of the cost of replacement. But if you invoke the warranty, chances are that you didn't do it in month 24.

It would be very interesting to know what percentage of customers AT&T expects would try and cash in.
post #19 of 52
Quote:
Originally Posted by christopher126 View Post

Hey, some of my best friends are hookers!

Atleast until the penicilin kicks in.

Back to the serious side of things here, I know of people that spend hundreds a month on service contracts and extended warranties. It is grand rip off. In this case it is a gross waste of money.

Now I suppose some can justify the expense, using creative math, but the problem many people have significant dollars going out every month because of these scams. Some may say scam is a little strong here but I will disagree. The insurance is more than the cost of the device being insured. That should set off alarms right there.

By the way everybody here complaining about AT&T needs to get a clue. The problem is with the people purchasing these goods. If you can call things like insurance and extended warranties goods.

Dav
post #20 of 52
Quote:
Originally Posted by solipsism View Post

Besides the clear fact that most countries don't allow you to tether any and all devices you wish for the same unlimited data price, nothing you have complained about is the result of Apple's doing. AT&T raised the ETF, AT&T is charging for the insurance and AT&T is the one that makes you sign a contract saying that you'll only use their data on that device. This shouldn't be that hard to understand.

Who is forcing people to do business with AT&T? Mr. Steve Jobs and Apple. That's who.

You say most countries don't allow you to tether for the same price. If you say so. But does that make it right? Try looking up the word "unlimited" and see if it is hard to understand.
post #21 of 52
Quote:
Originally Posted by Jerseymac View Post

Who is forcing people to do business with AT&T? Mr. Steve Jobs and Apple. That's who.

You say most countries don't allow you to tether for the same price. If you say so. But does that make it right? Try looking up the word "unlimited" and see if it is hard to understand.

1) Neither Apple, Steve Jobs, nor AT&T are forcing you to do anything.

2) It's business. If you don't like go elsewhere, if what you want doesn't exist -and- you think there is a market for it -and- you wish to do more than complain, then you can create your own company that solves the problems you envision.

3) I understand what the word unlimited means, it's you that has failed to understand what you signed. They clearly state that you have "unlimited" minutes, hours and days and an "unlimited" amount of data from that device. By your logic and all you can eat buffet means you can come back with your receipt at a later date because that is clearly not all you can eat over the course of your life.
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post #22 of 52
A few things EVERYONE should look into before paying this highway robbery fee.


- Call your home/renter insurance agent and find out what it cost to add an iPhone (or any other device that your concerned with) to your policy and what it can be covered for and how much/little the deductible might be. You might be shocked how little it adds to a home owners policy.

- Check your credit card company... most of the better ones offer buyers protections to some degree... It may or may not cover theft and it may or may not protect you for 2 years but call and ask... Also ask if they offer any protection service you can buy (if the card doesn't offer any). The only problem with this idea is this... Most/All of them will only cover you UP TO the amount your card was CHARGED for the phones. SO if you got special pricing and then lost the phone the phone company wont offer you that special pricing again and you'll be stuck paying the full no-contract price but hey some money back is better than nothing and it still might work out cheaper even with this hiccup.

- Google is your friend... Lots of places can offer this type of protection and its just a matter of researching them well enough to trust forking over money to.

AT&T is SO out of line on this .... I'd actually consider dropping them even tho I happen to get GREAT reception in my area. They really do suck and are SO anxious to show us all JUST HOW MUCH.
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post #23 of 52
AT&T can suck it.
post #24 of 52
Quote:
Originally Posted by solipsism View Post

1) Neither Apple, Steve Jobs, nor AT&T are forcing you to do anything.

2) It's business. If you don't like go elsewhere, if what you want doesn't exist -and- you think there is a market for it -and- you wish to do more than complain, then you can create your own company that solves the problems you envision.

3) I understand what the word unlimited means, it's you that has failed to understand what you signed. They clearly state that you have "unlimited" minutes, hours and days and an "unlimited" amount of data from that device. By your logic and all you can eat buffet means you can come back with your receipt at a later date because that is clearly not all you can eat over the course of your life.

Typical classic Apple Insider post. Go ahead and stick up for AT&T. I'm sure they are laughing all the way to the bank.

You're right, I don't have to do business with AT&T and as soon as my contract is up in July I will cease to do so.

As far as you telling me to go elsewhere, let me say this. No member of the wonderful supportive Apple community would ever tell another user to "go elsewhere" so I will conclude you are just a stock holder who knows you will take a hit if and when Apple decides to do the right thing and open up the iPhone to competition.
post #25 of 52
You guys can't see the forest for the trees!

AT&T is doing this stuff (raising iPhone cancellation rate; $325 now and now trying to rip us off with iPhone insurance) because they KNOW they are about to lose exclusivity. They are trying to squeeze money out of those who would consider moving to Verizon or whatever other provider gets the iPhone. If you stay with AT&T then you can waste your money on their insurance. It's a grab for money plain and simple.

As for the comments about this being Apple's fault, get real. Jobs and Apple shopped the iPhone to Verizon and they turned him down. Now that AT&T is whipping their asses in new equipment sales, they want a piece of the pie. And you know what it's going to cost them? Their soul! Which is a helluva a lot more than it would have cost them before. Steve and co. know they have a winner and everybody wants in now. Ah, I'm glad I bought low! My retirement is going to be iAwesome!
post #26 of 52
Quote:
Originally Posted by wizard69 View Post

Many will try to argue the opposite but they won't be able to find facts to back them up. Most people would be better off putting the mony they spend on warranties in the bank.

Avoid third part warranties like a sick hooker, you will thank yourself.


Dave

ASCAP music supervisor, editor and composer I woud say that is all trie except for new high end TVs. If the company will upgrade or replace, it's a good deal. Also spoke to an editor friend of mine who bought a very expesive broadcast hand held camera that apparently they used the same model to shot the season finale of a show. The camera was almost two grand, for $300, even if they drop it in a pool, they wll get it replaced from best buy.
post #27 of 52
Quote:
Originally Posted by Intense View Post

why don't we have this kind of insurance in quebec, canada

That's because your government provides health care insurance for all its citizens. They gotta cut back somewhere.
post #28 of 52
Quote:
Originally Posted by Scout7id View Post

You guys can't see the forest for the trees!

AT&T is doing this stuff (raising iPhone cancellation rate; $325 now and now trying to rip us off with iPhone insurance) because they KNOW they are about to lose exclusivity. They are trying to squeeze money out of those who would consider moving to Verizon or whatever other provider gets the iPhone. If you stay with AT&T then you can waste your money on their insurance. It's a grab for money plain and simple.

As for the comments about this being Apple's fault, get real. Jobs and Apple shopped the iPhone to Verizon and they turned him down. Now that AT&T is whipping their asses in new equipment sales, they want a piece of the pie. And you know what it's going to cost them? Their soul! Which is a helluva a lot more than it would have cost them before. Steve and co. know they have a winner and everybody wants in now. Ah, I'm glad I bought low! My retirement is going to be iAwesome!

How many more reasons do you need to dump ATT. Like the iPhone but my dislike of ATT is causing me to dump them for a Droid/Verizon when the contract is up.
post #29 of 52
Quote:
Originally Posted by dbtinc View Post

How many more reasons do you need to dump ATT. Like the iPhone but my dislike of ATT is causing me to dump them for a Droid/Verizon when the contract is up.

have fun playing with a piece of junk os that claims soo many things but can hardly perform most of them. once you have had an iphone, despite att's crap (which i also have to put up with daily) and you try to use any other smartphone, you really come to realize just how inferior they are. the hilarious thing thing is, that which people compain about the most which is the iphones os being open, is that which makes it better than all the rest. case and point: when you get your android device, PRAY that youget one that is fully... no scratch that MOSTLY being supported by good developers who will update the apps that you use. most of them as well as the independent hardware manufacturers are too cheap to update their software and drivers for each idiom of the android os, which basixlcally leaves you with a rendered useless device as far as im concerned. and if thats not enough... to get some of the apps to work properly you have to work like a programmer to make the changes. most of my friends and co-workers who own an android phone are constantly frustrated by their plight of incompatible or inoperable apps.
post #30 of 52
Heh, this article sounds like an advertisement for Squaretrade -- not that there's anything wrong with that Both of my flat-panel TVs are insured with them.
post #31 of 52
Nevermind, already covered.
post #32 of 52
Quote:
Originally Posted by Pooch View Post

expensive because although it's being marketed as an insurance plan it is not. it really is just another way for at&t to bring in more revenue. i'm interested in seeing the studies that were done that show just how much net profit at&t stands to make off this. they wouldn't be offering it if they were going to lose money. they have oodles and oodles of numbers showing expected uptake, claims, etc. and they know they're going to turn a profit.

oodles and oodles.

Of course they do - just like any other insurance company. Do you think your health insurer is just doing a public service?
post #33 of 52
Quote:
Originally Posted by hyperpunx View Post

have fun playing with a piece of junk os that claims soo many things but can hardly perform most of them. once you have had an iphone, despite att's crap (which i also have to put up with daily) and you try to use any other smartphone, you really come to realize just how inferior they are. the hilarious thing thing is, that which people compain about the most which is the iphones os being open, is that which makes it better than all the rest. case and point: when you get your android device, PRAY that youget one that is fully... no scratch that MOSTLY being supported by good developers who will update the apps that you use. most of them as well as the independent hardware manufacturers are too cheap to update their software and drivers for each idiom of the android os, which basixlcally leaves you with a rendered useless device as far as im concerned. and if thats not enough... to get some of the apps to work properly you have to work like a programmer to make the changes. most of my friends and co-workers who own an android phone are constantly frustrated by their plight of incompatible or inoperable apps.

Whil you may be mostly correct (I don't know if you are), recent polling shows Motorola smartphone customers have a 64% satasfaction rate (compared to 77% for the iPhone. I don't know if this is just for the Droid or for the entire Motorola line, but either way it doesn't seem like their phones are complete trash. Maybe they're still too new for many people to run into the problems you describe.
post #34 of 52
As a rule, extended warranties are a rip, but this one has to take the prize.
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post #35 of 52
Quote:
Originally Posted by johnboi1978 View Post

Will this cover your prototype 4g iPhone if it gets stolen by a douche that sells it to Gizmodo?

No, but it will cover the prosecution.
post #36 of 52
I had a Sony-Ericsson T616 with Cingular (now AT&T) before my iPhones. My replacement plan from them cost $1.19 a month. I know that an iPhone is a much more expensive unit, but this is ridiculous. Insurance works on a scale of value. More expensive things are covered somewhat by coverage on lesser (and more common) valued things. Five or six bucks a month would be in line if you ask me. Ask me for $4.99 and I wouldn't hesitate.
post #37 of 52
Quote:
Originally Posted by Ronbo View Post

Seems like you're thinking that even if your phone is stolen, you'd already given AT&T most of the cost of replacement. But if you invoke the warranty, chances are that you didn't do it in month 24.

It would be very interesting to know what percentage of customers AT&T expects would try and cash in.

True - but if a person has the coverage and uses it they are not likely to drop it before month 24 because their use of it will only reinforce that they should keep it.

Now consider how over priced this plan is for a contract with two iPhone on it. At 24 months 24x14x2=$672 add in the deductible, $871 for that refurbished phone. Odds are probably better with the lottery even with a 4 & 1 yr old!
post #38 of 52
By the way, this plan is not through AT&T - it is through Asurion...the insurance company that provides insurance coverage for ALL the major carriers. If I read correctly, it will even be directly billed through them. Too high in my opinion, but then again, I can see it being taken advantage of if the price weren't that steep. If you have had the insurance for 2 months and you lose the phone, you can get it replaced, and cancel the coverage after you get your replacement - that would mean you paid $28 in insurance plus the deductible...I just feel like a lot of phones would be 'lost' on ebay. I don't know, I guess the moral of the story is just take care of your phone.
post #39 of 52
It's almost as bad a rip off as Apple' RAM pricing (prior to the last year or so)
post #40 of 52
Quote:
Originally Posted by solipsism View Post

3) I understand what the word unlimited means, it's you that has failed to understand what you signed. They clearly state that you have "unlimited" minutes, hours and days and an "unlimited" amount of data from that device. By your logic and all you can eat buffet means you can come back with your receipt at a later date because that is clearly not all you can eat over the course of your life.


Naw, totally different. You can eat as much as you want during the time period you have paid for. Lunch. Dinner. Hell - stay 'til closing and nosh continuously.

Only if one wanted to stream data and pay no more monthly fees would your analogy hold. Like someone who has left the restaurant and then wants to reenter and eat more.
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