Insurance deductible more than cost of phone

[cmiddl01]

I just got the new HTC Inspire from Costco for free!!  Yay for Costco! Anyway, the normal price of this new phone is only $99.00 .  However, I  just set up my new AT&T account and was looking into the insurance that's $4.99 a month.  The deductible for this phone is more than the cost!! This is considered a tier 2 phone with a deductible of $125.  It seems ridiculous to me that the insurance deductible costs more than the phone.  Seriously AT&T?  I switched from Sprint after 10 years of service because I was tired of them ripping me off.  What's the deal??

[Wild Banchi ACE - Professor]

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cmiddl01 wrote:

I just got the new HTC Inspire from Costco for free!!  Yay for Costco! Anyway, the normal price of this new phone is only $99.00 .  However, I  just set up my new AT&T account and was looking into the insurance that's $4.99 a month.  The deductible for this phone is more than the cost!! This is considered a tier 2 phone with a deductible of $125.  It seems ridiculous to me that the insurance deductible costs more than the phone.  Seriously AT&T?  I switched from Sprint after 10 years of service because I was tired of them ripping me off.  What's the deal??

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I'm not exactly sure what you mean. The contract (subsidized) price of the Inspire is $99. The phone originally retails at full price for $449-499. You're paying an insurance deductible of $125 to have insurance on the phone? Is that correct?

[Planet-Ed ACE - Geek]

Correct, the OP is unaware what the full retail price of the phone is.  The current no commitment/retail price of the HTC Inspire is #399.00:

No Commitment Pricing

$399.99

The only reason the OP was able to get the device at the lower price was in exchange for the 2-year contract they had to accept.

[Wild Banchi ACE - Professor]

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Planet-Ed wrote:

Correct, the OP is unaware what the full retail price of the phone is.  The current no commitment/retail price of the HTC Inspire is #399.00:

No Commitment Pricing

$399.99

The only reason the OP was able to get the device at the lower price was in exchange for the 2-year contract they had to accept.

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Thanks for that slight correction.

And correct you are. So I don't really see what the whole big deal is...?

[Javeon]

AT&T isn't a cell phone business, it is a cell phone service business.  Insurance is through a third party.  If there wasn't a fee associated with it, everyone would commit fraud and make claims to sell the phones.

[LoudThud]

It is a ripoff. Since Asurion obviously won't give him a free phone,they should have a sliding scale deductible. This is Asurions fault. Not AT&Ts. But don't think that AT&T doesn't make good money off the phones. That's part of the business. $500. for an Inspire? They're making good $. There's noway Asurion should give you a refurbished phone for $125. It should be new. Ripoff.

[aristizzle]

$125 for a new brand new insurance replacement? what do you think Asurion is, a charity? The full price of the phone is 399.99, and you already got it for a subsidized price when you first bought it. No insurance plan will replace something brand new if it breaks, why would Asurion?

[eggypadua]

125.00 plus 5.00 each month.

[ghostryder ACE - Wizard]

So, the OP got a phone for free as long as a 2 yr contract was entered into with AT&T. Check

The OP was looking into getting insurance just in case. Check

The OP is balking at the $125 deductible to replace a $400 dollar phone (and the phone might be a refurbished one that is almost always better than a factory produced model). Then don't get the insurance and be careful with your new phone. There, you just saved $125.

[rettingr]

So... That's $120 for 2 years.  Then $125___ If something does happen ---- for a grand total of... $245 for a $399 phone.  Only $154 less than paying for the whole thing new, which will probably be less than $245 by the time something does happen to it.  Amazing how insurance makes people feel.

[CollateralDamage]

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ghostryder wrote:

The OP is balking at the $125 deductible to replace a $400 dollar phone (and the phone might be a refurbished one that is almost always better than a factory produced model). Then don't get the insurance and be careful with your new phone. There, you just saved $125.

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Hes not balking at anything. The replacement will NOT be new. $400. for a new Inspire is a ripoff. Refurbished is NOT better than new. Always. So,next time you wanna buy a new phone,tell them,just send me a refurbished!

[Fiercekitty]

But when that time comes..and the phone is broken.. Ppl who don't opt for ins sure do complain bout that "full retail price" thing.

[drumn_bass]

"$400. for a new Inspire is a ripoff."

I know! $650 for my Vizio TV is a Ripoff too! And don't get me even started on my new laptop... Seriosly, why is it a ripoff? 

[Wild Banchi ACE - Professor]

___________________________________________________________________drumn_bass wrote:
"$400. for a new Inspire is a ripoff."
 
I know! $650 for my Vizio TV is a Ripoff too! And don't get me even started on my new laptop... Seriosly, why is it a ripoff? 
 ___________________________________________________________________

Because people don't want to believe that something is worth that much, nor do they want to pay so much money for something that they think they deserve at a much lower price. Rules are rules.

[xceldata]

AT&T it seems to me has devised a perfect scheme to rip off its customers with this meaningless phone insurance that does nothing for the customers but goes only to reward AT&T with undeserved insurance payments.[Per Guidelines:  Keep it Relevant and Appropriate].

[kdfederer ACE - Wizard]

The insurance payments don't go to AT&T, they go to Asurion. That is the insurance company. Asurion is the insurance company for most of the wireless providers.
No one is forcing insurance on any customer, but they sure complain when they break their phone and have to pay full price.
Car and house insurance is a ripoff to, until you need it and then it is great to have it.
Wireless insurance works the same way. It is peace of mind.

[xceldata]

Czar: Number one you are being clever by half. Car and House insurance a not rip offs. I have Nationwide for my car and my house. They stood with me when there was a need for claiim. If the insurance money does not go to AT&T why is AT&T pushing it on customers --- never had any car dealer sold me any insurance, neither did my house buider sold me an insurance. You see Czar , right there is the difference.

[Max69 ACE - Wizard]

AT&T doesn't push the insurance on anyone, they just make it available. How many people do you think would know where to go for phone insurance otherwise? What most people don't realize is that you may be able to have it included in your homeowners.

[ShaunMN]

I would like to thank everyone for taking the time to post your comments and opinions related to this topic. This topic has been thoroughly discussed and will now be closed, as it is very old.