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

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 51
    payecopayeco Posts: 517member
    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.
  • Reply 2 of 51
    MacProMacPro Posts: 19,471member
    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?
  • Reply 3 of 51
    nasseraenasserae Posts: 3,167member
    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.
  • Reply 4 of 51
    Will this cover your prototype 4g iPhone if it gets stolen by a douche that sells it to Gizmodo?
  • Reply 5 of 51
    iyfcalviniyfcalvin Posts: 77member
    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! ;-)
  • Reply 6 of 51
    poochpooch Posts: 768member
    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.
  • Reply 7 of 51
    swiftswift Posts: 436member
    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!
  • Reply 8 of 51
    wizard69wizard69 Posts: 13,377member
    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
  • Reply 9 of 51
    intenseintense Posts: 106member
    why don't we have this kind of insurance in quebec, canada
  • Reply 10 of 51
    christopher126christopher126 Posts: 4,366member
    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!
  • Reply 11 of 51
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 12 of 51
    jerseymacjerseymac Posts: 408member
    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.
  • Reply 13 of 51
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 14 of 51
    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!!!!
  • Reply 15 of 51
    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
  • Reply 16 of 51
    technotechno Posts: 734member
    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.
  • Reply 17 of 51
    ronboronbo Posts: 669member
    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.
  • Reply 18 of 51
    wizard69wizard69 Posts: 13,377member
    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
  • Reply 19 of 51
    jerseymacjerseymac Posts: 408member
    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.
  • Reply 20 of 51
    solipsismsolipsism Posts: 25,726member
    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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