Submitted by Colin Breck on
If you're a regular iPhoneFAQ reader, this won't be the first time you've heard us advise you against buying iPhone or other mobile phone insurance through your wireless provider. When AT&T began offering iPhone insurance, we demonstrated how overpriced and undervalued their policy offerings were, hopefully saving many of you a great deal of money and frustration. Since the Verizon iPhone was announced, we've been waiting to find out what Verizon was going to step up to the plate with on the insurance front, hoping we'd be impressed. Unsurprisingly enough, we're not.
Hoping for anything else was sort of pointless given that Verizon and AT&T both offer insurance through the same third party company, Asurion. While the coverage that Asurion offers is excellent, the pricing is anything but. So, even though the same wizard is behind the curtain at both AT&T and Verizon and not ignoring the fact that replacement costs to the consumer are roughly $50 higher with the CDMA iPhone, we were hoping we'd see Verizon pushing aggressive pricing for insurance to give AT&T iPhone owners more reasons to switch.
So, yeah, it's cheaper. In fact, it's $3 a month cheaper. But, don't go getting excited just yet. By knocking $3 off the monthly rate for iPhone insurance, Verizon and Asurion have accomplished nothing more than bringing their cost down from murderously to horrifically overpriced.
Sure, replacing an iPhone that you stepped on or dropped in your pool or toilet could run you up to $749, but when you're dropping $11 month on insurance only to then have to pay a monstrous $199 claim deductible -- is the value there?
Until recently, your wireless provider (or the third party company they had an exclusive agreement with) was your only option for insuring a device such as the Droid. In the last 5 or so years, this has changed drastically, and we as consumers now have several other viable and well established options. Below is some information on other very reputable, well established options for protecting your new Verizon iPhone. To be clear, these aren't shady mom-and-pop operations, or we wouldn't be listing them here. These are Better Business Bureau rated A+ companies that have been doing what they do well for some time.The information on each of these options is intentionally brief, mostly because we've delivered this information before. There's also a great comparison table that follows further down. If you want to learn more, dig around here a bit or do some additional research. There's plenty to find.
SquareTrade
Newest iPhone FAQs
SquareTrade has achieved near household-name status over the last 5 years. You know those uber-warranties Best Buy is always trying to sell you? SquareTrade sells the same thing, only for much less. SquareTrade maintains near-perfect consumer ratings on sites like Epinions.com, NexTag.com, Google Products and more.
Take note, however, there's no theft or loss coverage with SquareTrade.
Save $165 in monthly fees with this option and enjoy a deductible that is $149 (75%) less than Verizon / Asurion's.
Worth Avenue Group
Worth Avenue Group has been insuring personal property for almost 40 years. In the last decade or so, Worth Avenue Group has become one of the most well-known names in television, PC, laptop and smartphone insurance. Like SquareTrade, Worth Avenue Group is an incredibly popular choice amongst iPhone owners who smartly decide against paying higher prices for less value.
Worth Avenue Group's coverage is almost identical to what you'd get from Verizon / Asurion. Two notable differences: you won't get second year manufacturer failure coverage with this choice, and you will not get loss coverage, only theft.
Save $104 in monthly fees with this option and enjoy a deductible that is $149 (75%) less than Verizon / Asurion's.
Verizon/Asurion, SquareTrade, and Worth Ave Group Compared
| Verizon | SquareTrade | Worth Avenue Group | |
| Cost | |||
| Cost per Month | $10.99 | $4.13 | $6.67 |
| Malfunction Deductible | $0 | $0 | N/A |
| Damage Deductible | $199 | $50 | $50 |
| Theft Deductible | $199 | N/A | $50 |
| Loss Deductible | $199 | N/A | N/A |
| Cost over 2 years | $264 | $99 | $160 |
| Coverage Offered | |||
| 1st Year Coverage | YES | YES | YES |
| 2nd Year Coverage | YES | YES | YES |
| 3rd Year Coverage | YES | NO | YES |
| Accidental Damage Protection | |||
| General Accidental Damage | YES | YES | YES |
| Drops | YES | YES | YES |
| Spills | YES | YES | YES |
| Screen Breakage | YES | YES | YES |
| Liquid Submersion | YES | YES | YES |
| Manufacturer Defects | YES | YES | NO |
| Policy Details | |||
| Purchase Period | 30 Days | 30 Days | Anytime |
| Covers New iPhones | YES | YES | YES |
| Covers Refurbished iPhones | YES | YES | YES |
| Covers Used iPhones | NO | NO | YES |
| Covers Jailbroken/Unlocked iPhones | NO | YES | YES |
| Claims Process | |||
| Malfunction Claims Allowed | 2 total claims per year | Unlimited | 0 |
| Damage Claims Allowed | 2 total claims per year | 1 | Unlimited |
| Theft Claims Allowed | 2 total claims per year | 0 | Unlimited |
| Loss Claims Allowed | 2 total claims per year | 0 | 0 |
| Consumer & Agency Ratings | |||
| ResellerRatings.com | N/A | 9.85 (of 10) | N/A |
| Epinions.com | N/A | 4.5 (of 5) | N/A |
| Google Products | N/A | 5.0 (of 5) | N/A |
| Nextag | N/A | 4.7 (of 5) | N/A |
| BBB | A+ | A+ | A+ |
| Cost | |||
| Cost per Month | $10.99 | $4.13 | $6.67 |
| Malfunction Deductible | $0 | $0 | N/A |
| Damage Deductible | $199 | $50 | $50 |
| Theft Deductible | $199 | N/A | $50 |
| Loss Deductible | $199 | N/A | N/A |
| Cost over 2 years | $264 | $99 | $160 |
Do I Need iPhone Insurance? What Should I Do?
We can't answer this. You need to. Understand the costs involved, know yourself, and you should have an answer. One thing worth noting is that the replacement costs of the Verizon iPhone, should you lose, drop, or otherwise damage your iPhone, are much higher than that of the AT&T / GSM iPhone. Verizon customers will be buying their new iPhones for $199 (16GB) or $299 (32GB) at the subsidized 2-year contract price, but replacement costs are high at $649 and $749.
Do you pamper your gadgets? Never let them out of your sight? Think insurance is for forgetful slobs? Don't get it. Keep the cash in your pocket.
Lose things? Drop things? Have kids? Want peace of mind? Get the insurance.
More Info:
SquareTrade: http://www.SquareTrade.com/iPhone
Worth Ave Group: http://www.WorthAveGroup.com/iphone-insurance
Comments
Andres replied on Permalink
Liquid submersion and 3rd year coverage are both covered by Asurion's Insurance coverage. I'm looking at the brochure the rep gave me. The deductible is also $169 on 16GB, not $199. Unlimited malfunction claims are allowed too. It must be nice to have $650 plus tax laying around to replace your phone when you break it. I don't, so I bought the insurance program yesterday.
Morgan replied on Permalink
Well said! Who wants to pay for insurance for it to only cover certain things? Its like having auto insurance on only your front and back bumpers but not your doors! How are you supposed to know what it's going to happen to your phone. Two years is a long time. I've had my phone stolen and then also accidentally dropped it at Fenway trying to move out of the way of someone getting to their seat and it landed perfectly in a small puddle and charging port got water damaged. Who plans for that stuff? Not me!! And the reason the deductible is so high is because precious apple doesn't believe in discounts so companies like asurion and the wireless carriers don't get a break on buying these devices for you to have as a replacement. My galaxy note 2 replacement is only 100 at $7 monthly!
Anonymous replied on Permalink
$11 per month or $132 per year seem high until you break, lose or have your phone stolen and have to pay $900 for a new IPhone.
If you have the insurance for 4 years ($528) + pay the deductible ($200) you are still coming out even to ahead.
We pay car insurance and home insurance each month incase something happens and we get sued for thousands of dollars. Same thing here it is just on what we normally don't think is that expensive because we lock into 2 or 3 year deals and receive the phone at a lesser start up cost.
For all of us who have dropped our phone into a pool (Or toilet) or had our kids break them, the insurance saved us allot of money to get a good product back in the end.
Just like other insurances (Home and Auto) there are rules and policies in place. Follow them and you will have a new phone in no time..
Anonymous replied on Permalink
Worth Ave. Group has a comparison chart on their page that has all the major companies. It's worth looking at to see what you want covered and how much you want to spend.
http://m.worthavegroup.com/iphone_comparison_sm.jpg
Jeff replied on Permalink
Worth's comparison chart is HORRENDOUSLY incorrect regarding Best Buy's insurance.
Anonymous replied on Permalink
I got my insurance from www.esurranty.com for my iphone 4s and it was the cheapest I found. Better than any other and the customer service was great. They answered all my questions and my policy documents were in my hands within a few hours.