iPhone 4 Insurance: Don't Buy From AT&T

Submitted by Bob Bhatnagar on

With the launch of the iPhone 4 tomorrow, prospective buyers and those who have successfully pre-ordered their devices may be looking for protection. Several options exist, and they each come with their own price tag and caveats. AT&T Wireless made news earlier this month when they announced that MobileProtect insurance from Asurion would finally be available for the iPhone.

apple iphone insurance mobileprotect asurion

Unfortunately, the pricing and features of the AT&T iPhone insurance plan just don't compare to alternatives. First of all, MobileProtect costs $11.99 per month and your iPhone must be enrolled within the first 30 days after activation. This puts the insurance total for a two-year contract at a whopping $288. Furthermore, those needing an iPhone 4 replacement will pay a $199 deductible, the same price as a subsidized 16 GB iPhone 4 with a two-year contract.

The pros of the AT&T insurance include comprehensive coverage (damage, theft, loss, out of warranty failure) and next-day replacement in most areas. Let's take a look as some of the alternatives:

AppleCare

AppleCare offers an extended warranty and service period for your iPhone 4 directly from the manufacturer. Normally your iPhone hardware would be covered under warranty for one year and as the owner you are eligible for 90 days of technical support. With AppleCare, both of these periods are extended to two years at a cost of $69. AppleCare can be purchased anytime within the first year of ownership.

Looking only at the extended warranty, this works out to approximately $5.75 per month to extend coverage an extra year. This is half the price of AT&T insurance. Although it's affordable, this is warranty coverage only. Breakage, spills, damage, theft and loss are not covered by AppleCare. Additional technical support is also covered for a full 21 months, but this is worthless if your iPhone is shattered or missing.

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SquareTrade

SquareTrade offers warranty programs for the iPhone that include damage protection with a five-day service guarantee. The company's plans can also be cancelled at any time and the customer receives a prorated refund for the remainder of the coverage period. Coverage includes accidental damage, spills, breakage, and out of warranty failure.

A SquareTrade extended warranty costs $124 for two years (on sale now for $99). This works out to around $5.17 per month, less than AppleCare and less than half the price of AT&T insurance. No deductible on failures, however accidental damages require a $50 deductible for repair. If your iPhone can't be repaired, SquareTrade will give you up to $599 cash to buy a new iPhone. This is enough to purchase a 16 GB iPhone 4 at full price.

One drawback of SquareTrade warranties is the lack of theft or loss coverage. For those customers who don't want to pre-pay, a $5.99 per month installment plan is available, which works out to $144 total over two years of coverage. SquareTrade must be purchased within 90 days of your iPhone purchase.

SquareTrade consistently receives near-perfect customer ratings on consumer websites such as NexTag and Epinions.

Worth Ave. Group

For complete iPhone 4 insurance Worth Ave. Group offers 1-3 years of coverage for $89 per year. For comparison, this means Worth Ave. Group insurance will cost you $7.42 per month. Worth Ave's policies cost more than both SquareTrade and AppleCare, but over $4 less per month than the most comparable plan, AT&T MobileProtect.

The advantages of Worth Ave. Group include comprehensive coverage against damage, spills, breakage, vandalism and theft for a $50 deductible. This deductible is $149 less than the deductible required with the AT&T insurance plan. The policy can be purchased at any time and the option of purchasing three years of coverage exceeds any of the plans we've described by a year.

Conclusion

With all of these more affordable options and different levels of coverage available, the AT&T iPhone insurance plan doesn't look like such a good deal. Finally offering a solution to customers seeking greater protection for their iPhones is a good thing, however the monthly premiums and deductibles in the Asurion MobileProtect plan just don't add up. Do your research before you purchase iPhone 4 protection!

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Comments

Amber with Mobi... replied on

Thanks for this review of iPhone protection options including MobileProtect by Asurion. You have the prices correct above. We just want to extend this further and mention that MobileProtect covers loss and theft, offering next day replacement and up to 2 claims a year. Consumers should consider how they will use their phone and their ability to replace that phone while under contract. We are listening and appreciate any and all feedback. Learn more at www.mymobileprotect.com.

Anonymous replied on

Asurion is the biggest rip off in the world. Google it!

Anonymous replied on

asurion! Wow get real! Thats highway robbery!!!!!!!!!! I paid 200 for my iphone so if i break it i have to pay onther 200 plus my monthly payments of 12.99. Asurion sucks!! there are plenty of other Insurance plans that put asurion in the toilet!!!

Anonymous replied on

Actually you all need to do your homework. MobileProtect protects you on all fronts. Theft, loss, damage, and warrant. Hence you don't have to go purchase Apple Care and Insurance. Also the insurance you mentioned above does not cover loss. So your thinking that if you loss it you will just report it stolen. Good luck with that because first off if you read a lot of the policy you have to prove some type of force, meaning you had a broken window in your car or you door was broken in your house. Then you have to wait and wait before you get your new phone. Also a lot of these policies only cover up to $500 or $600 max. Guess what? A new 32GB iPhone 4 is $699. So you pay the deductable and the difference. So in you got $600 coverage. You are $150 out of pocket plus the monthly fees. Plus you have to wait maybe a week or more. Then your premiems will go up or you will not be covered anymore. Or you can stop being so cheap and pay $50-$100 dollars more a year and never worry about it. If you leave your phone at the bar and someone steals it guess what you will have a new phone tomorrow. With the insurance companies I've looked at and that is several including the big names. If you left your phone at the bar and it was no longer there that is considered lost or theft but the fault is yours hence NOT covered.

I would suggest you all stop looking at the price tag and read through all the policies.

Anonymous replied on

Thanks so much for this info, it's so helpful! Thought AT&T or Apple was the only option. Much appreciated.

Anonymous replied on

Thanks so much for this info, it's so helpful! Thought AT&T or Apple was the only option. Much appreciated.

Igor replied on

Good job by anonimous posts mostly written by Asurion guys....
One point. Never use your home insurance policy for the phone loss:
1. Deductable is usually much higher
2. They may cover the price of your payment only, like $200 which is not nearly enoegh to get ne iphone - $600
3. The most important. Why would you jeopardise your home insurance policy to get several hundred dollars?! You will pay many times more back in premiums increases and lost discounts for about 5 years. Unless you have Major fire (flood) at the same time - then it makes sence.

Anonymous replied on

Insurence and Warrenty are TWO DIFFERENT THINGS. GOOGLE IT!

Anonymous replied on

You spelled both of those words wrong... You know that immediately makes you look illiterate and ignorant...

Anonymous replied on

So true, what a tard!!! LOL

Anonymous replied on

An out of warranty repair through Apple for the phone is 199. Why pay all of the money for a deductible? The only good plans would cover lost or stolen iphones.

BBY1185 replied on

BEST BUY ALSO OFFERS PROTECTION FOR YOUR IPHONE. IT COST $14.99 MONTHLY AND USUALLY IS DIRECTLY DEPOSITED OFF A CREDIT OR DEBIT CARD OF THE CUSTOMER'S CHOICE. THEY ALSO HAVE THE OPTION OF PAYING FOR THE FULL TWO YEARS AT ONCE WHICH COST $229.99. IT ONLY COVERS ACCIDENTAL DAMAGE AND THE PHONE HAS TO BE PURCHASED FROM BEST BUY. THE PERKS OF THIS PLAN IS THAT THERE IS $0 DEDUCTIBLE, REWARD ZONE POINTS ARE CREDITED, AND YOU CAN CANCEL THE PLAN ANYTIME YOU WANT.

AJ replied on

I bought my warranty from www.esurranty.com the cost was $69 for a year! $0 deductible for repair and $50 deductible for cosmetic repairs i.e. cracked screen! You can't beat that. They have loss & theft coverage that replaces the phone up to $1000 for a $145 deductible. Also, their price was the best. They are underwritten by 2 different insurance companies and though I haven't had to use the service, I'm glad I have it.

AJ replied on

I bought my warranty from www.esurranty.com the cost was $69 for a year! $0 deductible for repair and $50 deductible for cosmetic repairs i.e. cracked screen! You can't beat that. They have loss & theft coverage that replaces the phone up to $1000 for a $145 deductible. Also, their price was the best. They are underwritten by 2 different insurance companies and though I haven't had to use the service, I'm glad I have it.

Anonymous replied on

I like Square Trade because my concern is accidental damage. The only problems I have ever had with phones were self-induced such as swift trips from my hand to the parking lot.