ATT won't sell you a new one for $199. It will be $599 if you don't manage to keep it for 12 months before damaging it. If you manage to make it 18 months it will be $399. But the kind of people who buy insurance don't take good enough care to have it last that long. I personally don't understand how BB makes money on these deals - I've known several people who should have their picture in the dictionary under "moral hazard" when it comes to these insurance plans.
back around 2000 UPS won a case against the IRS. they had an insurance subsidiary in the bahamas and were able to take some huge tax breaks due to the "risks" they took on even though they rarely lost a package. read about it in the WSJ. within a year of UPS winning in court these insurance plans popped up everywhere.
best buy doesn't write them, there is a separate insurance company that takes on the risk. AIG was a big player in this and that part of the company made a lot of money.
The customer facing tech people at BB don't make $15 an hour, much less $50. The people who get the phone in the factory to repair it can't make $20 an hour.
i worked at fry's electronics for a couple years as a tech, and when i left they charged $70/hour but paid me $15/hour. 1 good thing came out of my time there, i can fix my own laptops and when my iphone breaks i'll replace the screen or battery myself. I've already soldered a nano battery and removed the hard drive of an ipod classic, so it shouldn't be that hard.
The point of insurance is NOT to help out the customer, it is to make money for the company selling it. High labor costs go to BB not the technician.
add employee benefits, fica, medicare, unemployment insurance and other costs and that $15 hour salary goes up. i pay $90 an hour labor when i take my car in to the dealer, but i doubt if the guy working on it makes anywhere close to $90 an hour
Do you think the $90 per hour you pay has anything to do with the costs to the dealer of having that employee? If you do... well...
back around 2000 UPS won a case against the IRS. they had an insurance subsidiary in the bahamas and were able to take some huge tax breaks due to the "risks" they took on even though they rarely lost a package. read about it in the WSJ. within a year of UPS winning in court these insurance plans popped up everywhere.
best buy doesn't write them, there is a separate insurance company that takes on the risk. AIG was a big player in this and that part of the company made a lot of money.
BB sells the risk, but the cost of the insurance for BB does go up when customers use it more often. It's not a hard concept - if you're 80, smoke and have had 3 heart attacks, life insurance is VERY expensive (impossibly so, I bet), but if you're young and nubile, it's cheap.
BB may not be the insurer, but BB BUYs the insurance from the underwriter.
Back to my original point - "I personally don't understand how BB makes money on these deals - I've known several people who should have their picture in the dictionary under "moral hazard" when it comes to these insurance plans."
The fact that it's not BB who does the actual underwriting is totally irrelevant.
Bah, so after holding out SO long for an iPhone (or any cell .. that's right I've been without a cell phone for 4 years ... go me!), I pre-ordered my shiny new 3GS today... and found out I have to / had to pay almost 70 bucks in freakin' tax because I live in Cali and they tax you on the unbundled price... Sunshine Tax my butt, it's friggin' cloudy as hell today!
Hopefully we get our pre-ordered phones a couple days early though
Do you know if it is possible to purchase the insurance upfront and prepay rather than putting it on your monthly phone bill? Also, are you getting the 32 GB model?
Thanks in advance for the information!
The iPhone protection plan is not tied to your AT&T bill. You make the first payment of $14.99+tax at the register when you buy your iPhone, then it is automatically taken out of whichever debit card or credit card (or Best Buy Card) that you want to use.
Doesn't the 2 year extended Apple Care plan proved the same type of coverage for just $69?
AppleCare gives you a second year of defect coverage. no accidents, loss or theft. And it's unlimited if it is legit defects. since most can't be fixed it's a swap to a service phone (a unit that comes without all the accessories etc) but you don't have to wait 3 days to get it blah blah.
I say rip off on the whole Black Tie thing. A lot of credit card companies now have buyers protection on purchases made with the card so check that. not to mention that many homeowners and renters insurance will cover computers and smart phones now. so check that too. granted it is only one time but how many times do you plan to drop, lost or have stolen your phone. is it really enough times to make $360 (to cover your contract term and likely as long as you might keep a particular model) actually worth it. granted it is only one time but how many times do you plan to drop, lost or have stolen your phone. is it really enough times to make $360 (to cover your contract term and likely as long as you might keep a particular model) actually worth it.
Quote:
Originally Posted by cameronj
ATT won't sell you a new one for $199. It will be $599 if you don't manage to keep it for 12 months before damaging it. If you manage to make it 18 months it will be $399.
there are situations where you can get the display assembly replaced or buy a service phone from an apple store and it's still only around $199. it might be a refurb but that doesn't bother me cause I've had refurb stuff from Apple before and it never gave me any unexpected trouble.
doesn't do you any good if you lost the phone but at least when the issue is damage all hope might not be lost
BB insurance is a rip-off. If you have home owners or renters insurance most will cover items like this, some already do. I added iPhone coverage to both mine and my wifes, $30 a year for both ($15 each) with no deductible, full replacement.
BB insurance is a rip-off. If you have home owners or renters insurance most will cover items like this, some already do. I added iPhone coverage to both mine and my wifes, $30 a year for both ($15 each) with no deductible, full replacement.
homeowners and renters claims end up on CLUE. best buy claims don't.
For those who haven't heard about SquareTrade, SquareTrade?s iPhone warranty DOES cover liquid damage (including immersion), drops, and other accidental damage from handling.
SquareTrade is much less expensive than Best Buy. Our new warranty pricing will be up next week, but the new 3gs warranty will be priced at $120 for the 32gb and $96 for the 16gb (after our current 20% ongoing discount). These prices are for 2 years of coverage. That?s one-third of Best Buy?s price or less.
Just curious, where is the source stating that BB will have the 3GS on launch day? Haven't heard anything official, even on BB's forums...
why wouldn't they? they're and official reseller.
i expect walmart to have them too.
you can always call the one closest to you.
back on topic. see if your existing insurance will cover you. i'll bet it's tons cheaper to get it added to your homeowners policy or whatever.
insurance might be a good idea (esp if you can get theft/loss protection).. my friend lost his 3G and could NOT buy a replacement for less than the unsubsidized cost.
so.. @rrod182, do you know if your insurance co. would have paid you the purchase price, or the full unsbsidized cost of replacing it?
The reason it's $15/month is because there is no deductible to have it repaired/replaced, I have BT protection and i've replaced it free twice for cracked screen. SquareTrade and every other program makes u pay when it's time to utilize
I've had it on my iphone 3g for 9 months now. Cracked a screen once and spilled water on it (wouldn't charge). Based on policy I was suppose to get a loaner while they sent mine out but both times they just replaced it with a refurb in store (which I would rather do). Totally worth it for me. $15 a month is high but no deductible makes it worth it
That is why i tell everyone, buy an ottorbox case!!! most durable case i have had. I have dropped it on concrete and the phone worked just fine.
$15.00 bucks is a little high for insurance, but it may be the best thing if your prone to dropping it. However, if you buy an iphone at an at&t store im assuming that you cant by the insurance from best buy seperately. Also, what about lost or stolen phones? is that covered in the insurance? I didnt see anything about that.
3 best things that i bought for my iphone so far..... ottorbox case, mobile me, and i klear cleaning kit for my iphone and macbook.
Comments
ATT won't sell you a new one for $199. It will be $599 if you don't manage to keep it for 12 months before damaging it. If you manage to make it 18 months it will be $399. But the kind of people who buy insurance don't take good enough care to have it last that long. I personally don't understand how BB makes money on these deals - I've known several people who should have their picture in the dictionary under "moral hazard" when it comes to these insurance plans.
back around 2000 UPS won a case against the IRS. they had an insurance subsidiary in the bahamas and were able to take some huge tax breaks due to the "risks" they took on even though they rarely lost a package. read about it in the WSJ. within a year of UPS winning in court these insurance plans popped up everywhere.
best buy doesn't write them, there is a separate insurance company that takes on the risk. AIG was a big player in this and that part of the company made a lot of money.
The customer facing tech people at BB don't make $15 an hour, much less $50. The people who get the phone in the factory to repair it can't make $20 an hour.
i worked at fry's electronics for a couple years as a tech, and when i left they charged $70/hour but paid me $15/hour. 1 good thing came out of my time there, i can fix my own laptops and when my iphone breaks i'll replace the screen or battery myself. I've already soldered a nano battery and removed the hard drive of an ipod classic, so it shouldn't be that hard.
The point of insurance is NOT to help out the customer, it is to make money for the company selling it. High labor costs go to BB not the technician.
add employee benefits, fica, medicare, unemployment insurance and other costs and that $15 hour salary goes up. i pay $90 an hour labor when i take my car in to the dealer, but i doubt if the guy working on it makes anywhere close to $90 an hour
Do you think the $90 per hour you pay has anything to do with the costs to the dealer of having that employee? If you do... well...
back around 2000 UPS won a case against the IRS. they had an insurance subsidiary in the bahamas and were able to take some huge tax breaks due to the "risks" they took on even though they rarely lost a package. read about it in the WSJ. within a year of UPS winning in court these insurance plans popped up everywhere.
best buy doesn't write them, there is a separate insurance company that takes on the risk. AIG was a big player in this and that part of the company made a lot of money.
BB sells the risk, but the cost of the insurance for BB does go up when customers use it more often. It's not a hard concept - if you're 80, smoke and have had 3 heart attacks, life insurance is VERY expensive (impossibly so, I bet), but if you're young and nubile, it's cheap.
BB may not be the insurer, but BB BUYs the insurance from the underwriter.
Back to my original point - "I personally don't understand how BB makes money on these deals - I've known several people who should have their picture in the dictionary under "moral hazard" when it comes to these insurance plans."
The fact that it's not BB who does the actual underwriting is totally irrelevant.
Hopefully we get our pre-ordered phones a couple days early though
Do you know if it is possible to purchase the insurance upfront and prepay rather than putting it on your monthly phone bill? Also, are you getting the 32 GB model?
Thanks in advance for the information!
The iPhone protection plan is not tied to your AT&T bill. You make the first payment of $14.99+tax at the register when you buy your iPhone, then it is automatically taken out of whichever debit card or credit card (or Best Buy Card) that you want to use.
Yes, we will be getting the 32 GB model.
Doesn't the 2 year extended Apple Care plan proved the same type of coverage for just $69?
AppleCare gives you a second year of defect coverage. no accidents, loss or theft. And it's unlimited if it is legit defects. since most can't be fixed it's a swap to a service phone (a unit that comes without all the accessories etc) but you don't have to wait 3 days to get it blah blah.
I say rip off on the whole Black Tie thing. A lot of credit card companies now have buyers protection on purchases made with the card so check that. not to mention that many homeowners and renters insurance will cover computers and smart phones now. so check that too. granted it is only one time but how many times do you plan to drop, lost or have stolen your phone. is it really enough times to make $360 (to cover your contract term and likely as long as you might keep a particular model) actually worth it. granted it is only one time but how many times do you plan to drop, lost or have stolen your phone. is it really enough times to make $360 (to cover your contract term and likely as long as you might keep a particular model) actually worth it.
ATT won't sell you a new one for $199. It will be $599 if you don't manage to keep it for 12 months before damaging it. If you manage to make it 18 months it will be $399.
there are situations where you can get the display assembly replaced or buy a service phone from an apple store and it's still only around $199. it might be a refurb but that doesn't bother me cause I've had refurb stuff from Apple before and it never gave me any unexpected trouble.
doesn't do you any good if you lost the phone but at least when the issue is damage all hope might not be lost
BB insurance is a rip-off. If you have home owners or renters insurance most will cover items like this, some already do. I added iPhone coverage to both mine and my wifes, $30 a year for both ($15 each) with no deductible, full replacement.
homeowners and renters claims end up on CLUE. best buy claims don't.
Anyone have experience with SquareTrade?
http://www.squaretrade.com/pages/iphone-landing1
John
Hi John, there's a long thread on the MacRumors forum that discusses the SquareTrade Warranty from last year:
http://forums.macrumors.com/showthread.php?t=524685
For those who haven't heard about SquareTrade, SquareTrade?s iPhone warranty DOES cover liquid damage (including immersion), drops, and other accidental damage from handling.
SquareTrade is much less expensive than Best Buy. Our new warranty pricing will be up next week, but the new 3gs warranty will be priced at $120 for the 32gb and $96 for the 16gb (after our current 20% ongoing discount). These prices are for 2 years of coverage. That?s one-third of Best Buy?s price or less.
For more information, go to:
http://www.squaretrade.com/iphone
Cheers
Vince Tseng
SquareTrade
http://cnettv.cnet.com/iphone-3g-wai...CarouselArea.2
Kind of makes you double think it doesn't it?
CNet, there just a small site that nobody reads.
Just curious, where is the source stating that BB will have the 3GS on launch day? Haven't heard anything official, even on BB's forums...
why wouldn't they? they're and official reseller.
i expect walmart to have them too.
you can always call the one closest to you.
back on topic. see if your existing insurance will cover you. i'll bet it's tons cheaper to get it added to your homeowners policy or whatever.
insurance might be a good idea (esp if you can get theft/loss protection).. my friend lost his 3G and could NOT buy a replacement for less than the unsubsidized cost.
so.. @rrod182, do you know if your insurance co. would have paid you the purchase price, or the full unsbsidized cost of replacing it?
Sorry to go off topic- but why is this new model called the iPhone 3G S ? is the S for Steve?
1 - you're not sorry to go off topic
2 - yes, the S is for Steve
1 - you're not sorry to go off topic
2 - yes, the S is for Steve
omg you are too funny lol
$15.00 bucks is a little high for insurance, but it may be the best thing if your prone to dropping it. However, if you buy an iphone at an at&t store im assuming that you cant by the insurance from best buy seperately. Also, what about lost or stolen phones? is that covered in the insurance? I didnt see anything about that.
3 best things that i bought for my iphone so far..... ottorbox case, mobile me, and i klear cleaning kit for my iphone and macbook.