Apple Care or SquareTrade?

[_Refurbished_]

I've looked into a few different insurance options for the iPhone. I'm not very interested in them, as I treat my phone like a baby . My mom, however, is planning to buy a new iPhone and she wants insurance. This is what I've found so far:

iPhone 3Gs 16GB

#1 - Squaretrade.com: $4/month ($96/2 years), drops, spills and battery failures. You get cash back if iPhone can't be fixed. $50 deductable on certain accident claims.
#2 - AppleCare: $3/month ($70/2 years), extends phone support from 90 days > 2 years, extends warranty of the phone to 2 years. Does not include any type of accidental insurance.
#3 - BestBuy: $15/month ($360/2 years), covers accidental insurance, but DOES NOT spills. Don't even consider this plan. It's a complete rip-off.

The winner is quite clear. Squaretrade provides the most coverage, and at a reasonable price. If you're phone gets destroyed somehow and it cannot be fixed, you will still get $350 towards a new phone. You can easily find a replacement at that price off Craigslist or Ebay. I've heard great things from Squaretrade, and that's my recommendation.

 

[fishepa]

I had to use SquareTrade once when a TV I had covered with them crapped out. I eventually got my money about 3 months later, biggest hassle ever.

 

[jetjaguar]

i guess i am going to pick up apple care .. thanks

 

[RetiredInFl]

Totally NOT worth it. Squaretrade will only pay you only $399 for a 16 gig which puts you out another $200 out of pocket if you have to replace it. So $200 "loss" for underpayment from Squaretrade, $50 Deductible from Squaretrade and ~$100 cost for the insurance = $350 out of pocket to get a check for $350 back should your phone need to be replaced. PLUS you would have to REPURCHASE the insurance AGAIN for the replacement phone for ANOTHER $100 or so. It's LOSE LOSE all the way with Squaretrade.

I've looked into a few different insurance options for the iPhone. I'm not very interested in them, as I treat my phone like a baby . My mom, however, is planning to buy a new iPhone and she wants insurance. This is what I've found so far:

iPhone 3Gs 16GB

#1 - Squaretrade.com: $4/month ($96/2 years), drops, spills and battery failures. You get cash back if iPhone can't be fixed. $50 deductable on certain accident claims.
#2 - AppleCare: $3/month ($70/2 years), extends phone support from 90 days > 2 years, extends warranty of the phone to 2 years. Does not include any type of accidental insurance.
#3 - BestBuy: $15/month ($360/2 years), covers accidental insurance, but DOES NOT spills. Don't even consider this plan. It's a complete rip-off.

The winner is quite clear. Squaretrade provides the most coverage, and at a reasonable price. If you're phone gets destroyed somehow and it cannot be fixed, you will still get $350 towards a new phone. You can easily find a replacement at that price off Craigslist or Ebay. I've heard great things from Squaretrade, and that's my recommendation.

 

[_Refurbished_]

Totally NOT worth it. Squaretrade will only pay you only $399 for a 16 gig which puts you out another $200 out of pocket if you have to replace it. So $200 "loss" for underpayment from Squaretrade, $50 Deductible from Squaretrade and ~$100 cost for the insurance = $350 out of pocket to get a check for $350 back should your phone need to be replaced. PLUS you would have to REPURCHASE the insurance AGAIN for the replacement phone for ANOTHER $100 or so. It's LOSE LOSE all the way with Squaretrade.

Who said anything about replacing your destroyed iPhone with a new iPhone? Also, buying insurance twice for the same object would be hilariously stupid. This is the route to go:


Lets say I bought an iPhone 3G 8GB last year. A year later drop it into a pool by accident and is deemed not fixable by Squaretrade. I would then buy a replacement phone off Craigslist or Ebay with their $350 check. If you browse Craigslist, you can easily find a used, good condition iPhone 3G 8GB for $350: http://orangecounty.craigslist.org/mob/1329692506.html. In a year from now, the 3Gs 16GB will be worth roughly the same price.

Now for the math:
Squaretrade: $96 for 2 years and $50 on the deductible.
Applecare: $70 for 2 years and $200 for a replacement.

So to have your phone replaced with either company, it will cost:
Squaretrade = $146
Apple = $270

Squaretrade is not for everyone, but it's clearly the best method for insurance compared to the other companies being discussed.

 

[tylertech]

SquareTrade randomly sent me a free iPhone case! Glad I got it!

 

[Primejimbo]

I've looked into a few different insurance options for the iPhone. I'm not very interested in them, as I treat my phone like a baby . My mom, however, is planning to buy a new iPhone and she wants insurance. This is what I've found so far:

iPhone 3Gs 16GB

#1 - Squaretrade.com: $4/month ($96/2 years), drops, spills and battery failures. You get cash back if iPhone can't be fixed. $50 deductable on certain accident claims.
#2 - AppleCare: $3/month ($70/2 years), extends phone support from 90 days > 2 years, extends warranty of the phone to 2 years. Does not include any type of accidental insurance.
#3 - BestBuy: $15/month ($360/2 years), covers accidental insurance, but DOES NOT spills. Don't even consider this plan. It's a complete rip-off.

The winner is quite clear. Squaretrade provides the most coverage, and at a reasonable price. If you're phone gets destroyed somehow and it cannot be fixed, you will still get $350 towards a new phone. You can easily find a replacement at that price off Craigslist or Ebay. I've heard great things from Squaretrade, and that's my recommendation.

I have the Best Buy info right next to me and it does cover spills

 

[lixuelai]

SquareTrade randomly sent me a free iPhone case! Glad I got it!

LMAO, they probably thought it is cheaper to give you a case than have you break it

 

[tylertech]

LMAO, they probably thought it is cheaper to give you a case than have you break it

Haha that's what I thought, why give some one a few hundred to fix their phone when you can prevent it for a few bucks

 

[Resist]

Break your 32 GB iPhone and they give you $499 ?????

Is that enough to cover replacement purchase from Apple ???

No it won't be enough to fully cover the replacement full price unsubsidized cost but at least it is something and more than any other warranty would pay.

 

[RetiredInFl]

What do you mean "buying it twice for the same object?" Why would you not want the 2nd one to be covered? What if you drown that one 2 weeks after you get it? Do you drop comprehensive car insurance after they pay for a broken windshield? Most insurances continue to cover you without recharging you for the policy again. But that isn't even the issue.

For a 3G, yes you are absolutely correct, I thought you were referring to a new 3GS. I had their contract for it as well. With the 3GS they changed their policy and no longer cover for replacement value. Sure, if you drown a 3GS a year or more from now AFTER (and IF) a new model is released you MIGHT be able to replace it off CL or eBay for what they give you. But what if you kill a 3GS in the next 1 month or 6 months or 10 months? You're SOL.

As for your Apple example, first of all you can buy 2nd year coverage for $50 if you check eBay but that $50 or $70 insurance CONTINUES for 2 years on each replacement you get so your covered continuously.

Again, if you were referring to the OLD discontinued 3G I missed that since you can replace them cheaply now but for a 3GS, it's still a waste of money unless you can be 100% sure nothing will happen to it until a new model comes out and the price drops.

Who said anything about replacing your destroyed iPhone with a new iPhone? Also, buying insurance twice for the same object would be hilariously stupid. This is the route to go:

Lets say I bought an iPhone 3G 8GB last year. A year later drop it into a pool by accident and is deemed not fixable by Squaretrade. I would then buy a replacement phone off Craigslist or Ebay with their $350 check. If you browse Craigslist, you can easily find a used, good condition iPhone 3G 8GB for $350: http://orangecounty.craigslist.org/mob/1329692506.html. In a year from now, the 3Gs 16GB will be worth roughly the same price.

Now for the math:
Squaretrade: $96 for 2 years and $50 on the deductible.
Applecare: $70 for 2 years and $200 for a replacement.

So to have your phone replaced with either company, it will cost:
Squaretrade = $146
Apple = $270

Squaretrade is not for everyone, but it's clearly the best method for insurance compared to the other companies being discussed.

 

[RetiredInFl]

$499 - $50 deductible less the cost of the insurance you already paid.

Break your 32 GB iPhone and they give you $499 ?????

Is that enough to cover replacement purchase from Apple ???




.

 

[RetiredInFl]

And by the way, I just checked and Squaretrade now only pays $299 for an 8GIG 3G so all you would get is $250 after deductible. So your $350 craigslist deal is still poor since your NET payment from SQT is $299-$50-$96= $153 so the phone would still cost you $200. If you put $10/week in the bank and self-insure you'd be better off because MOST folks don't need to use their insurance.

Who said anything about replacing your destroyed iPhone with a new iPhone? Also, buying insurance twice for the same object would be hilariously stupid. This is the route to go:


Lets say I bought an iPhone 3G 8GB last year. A year later drop it into a pool by accident and is deemed not fixable by Squaretrade. I would then buy a replacement phone off Craigslist or Ebay with their $350 check. If you browse Craigslist, you can easily find a used, good condition iPhone 3G 8GB for $350: http://orangecounty.craigslist.org/mob/1329692506.html. In a year from now, the 3Gs 16GB will be worth roughly the same price.

Now for the math:
Squaretrade: $96 for 2 years and $50 on the deductible.
Applecare: $70 for 2 years and $200 for a replacement.

So to have your phone replaced with either company, it will cost:
Squaretrade = $146
Apple = $270

Squaretrade is not for everyone, but it's clearly the best method for insurance compared to the other companies being discussed.

 

[jacobgaul]

i have a 32gb iphone and its insured for $699 thru squaretrade, it cost me $80.00 for 2yr with accidental.. if i drop it or whatever i have a $50 dect. so they will refund me $649.00 you have to tell them you need to insure for FULL retail value.

you have to call them for this you cant do it online as of the last time i checked.

 

[Resist]

i have a 32gb iphone and its insured for $699 thru squaretrade

SquareTrade will only cover up to $499 for the 32GB iPhone at a cost of $115.20.

 

[kage207]

Btw, Best Buy's plan covers spills and for the FULL 2 years. Also the service does not end after yours breaks. They stick with you for the full 2 years.

 

[RetiredInFl]

That's what you THINK. You won't collect it if you need it despite what they "told you." The rep who sold it to you was "not properly trained." I went through the same thing with them.

i have a 32gb iphone and its insured for $699 thru squaretrade, it cost me $80.00 for 2yr with accidental.. if i drop it or whatever i have a $50 dect. so they will refund me $649.00 you have to tell them you need to insure for FULL retail value.

you have to call them for this you cant do it online as of the last time i checked.

 

[RetiredInFl]

Yea, at Best Buy for $15/month they should also send a limo to your house to deleiver the replacement! That's $360 for 2 years! more then 50% of the cost of a brand new phone. The only thing that keeps Best Buy in business are their warranties ....

Btw, Best Buy's plan covers spills and for the FULL 2 years. Also the service does not end after yours breaks. They stick with you for the full 2 years.

 

[Johnnybrav0]

Btw, Best Buy's plan covers spills and for the FULL 2 years. Also the service does not end after yours breaks. They stick with you for the full 2 years.

You are full of sh....BB insurance is like a scam...they only cover what the Stupid Squad tells them...and if you get one of those idiots that don't know jack...good luck getting it cover....

Iphone is cover 1 year....New Iphone get's release every year....no point getting insurance.....period....keep the money you pay for insurance on for you new iphone that get's release in June or July of every year....

 

[_Refurbished_]

I have the Best Buy info right next to me and it does cover spills

You're right, I either read it wrong somewhere, or got mis-information. It does cover spills. Doesn't really matter though, as the plan is idiotic in any scenario. Even if it covered theft, it would still be stupid.

And by the way, I just checked and Squaretrade now only pays $299 for an 8GIG 3G so all you would get is $250 after deductible. So your $350 craigslist deal is still poor since your NET payment from SQT is $299-$50-$96= $153 so the phone would still cost you $200. If you put $10/week in the bank and self-insure you'd be better off because MOST folks don't need to use their insurance.

I used the 3G as an example to show how much you can buy a used iPhone for down the road. In 10 months, you could find a good deal on a used iPhone. The pricing reflects buying the insurance for a 3Gs.

If you went out today to buy a 3Gs + Squaretrade, you would get $350 back, not $299.

If you break your phone in the first 3 months, you're SOL, in any scenario. Whether your covered with insurance, or not. With Applecare, you would be spending $270, not $200, because you paid for Applecare protection + you're paying for a replacement phone.

Squaretrade is only worthwhile if you break your phone down the road. You could self insure, but if your phone breaks after a month, you have $40 towards a new phone ....which is why I said you're SOL in any scenario.

 

[slipper]

SquareTrades website says $299 for the iPhone 8gb 3G.

The biggest stipulations i saw on their website is coverage amount is based on early equipment upgrade and $50 deductible. So for a replacement i would have to pay $50 and extend my contract another 2 years.

Out of the $76.80 spent, they cover this amount by ~220%. Given the cost of this insurance (up-front and deductible) and the risk of accidentally damaging the phone is very low, I would much rather save my money. Speaking for myself and all my friends with an iPhone, no one has ever broke their iPhone. Drops, submersion, anything.

As with any insurance there is always the problem with fraud so i would imagine a significant portion (not majority, but a measurable portion) of people are sabotaging their iPhone for a new one. Even in this scenario i don't see much benefit.

 

[RetiredInFl]

AT&T will no longer sell you an "early upgrade" iPhone 3GS if you already purchased one on the same line unless you're 18 months into your contract. That is where Squaretrade is TOTALLY wrong in what they are telling customers about why they only pay $499. They "CLAIM" they thought that was the case but "wasn't aware" you couldn't. BS on them.

If you need to replace it anytime before that you're out $699 retail price. Go into any AT&T store and ask. This is from "personal experience."

SquareTrades website says $299 for the iPhone 8gb 3G.

The biggest stipulations i saw on their website is coverage amount is based on early equipment upgrade and $50 deductible. So for a replacement i would have to pay $50 and extend my contract another 2 years.

Out of the $76.80 spent, they cover this amount by ~220%. Given the cost of this insurance (up-front and deductible) and the risk of accidentally damaging the phone is very low, I would much rather save my money. Speaking for myself and all my friends with an iPhone, no one has ever broke their iPhone. Drops, submersion, anything.

As with any insurance there is always the problem with fraud so i would imagine a significant portion (not majority, but a measurable portion) of people are sabotaging their iPhone for a new one. Even in this scenario i don't see much benefit.

 

[RetiredInFl]

You don't pay for Applecare the 1st year and by the time the 2nd year comes there is a new iPhone which "most" upgrade to anyway. The 3GS won't drop in resale(eBay/CL purcase) value until the next model comes out which is probably 1 year.

You're right, I either read it wrong somewhere, or got mis-information. It does cover spills. Doesn't really matter though, as the plan is idiotic in any scenario. Even if it covered theft, it would still be stupid.



I used the 3G as an example to show how much you can buy a used iPhone for down the road. In 10 months, you could find a good deal on a used iPhone. The pricing reflects buying the insurance for a 3Gs.

If you went out today to buy a 3Gs + Squaretrade, you would get $350 back, not $299.

If you break your phone in the first 3 months, you're SOL, in any scenario. Whether your covered with insurance, or not. With Applecare, you would be spending $270, not $200, because you paid for Applecare protection + you're paying for a replacement phone.

Squaretrade is only worthwhile if you break your phone down the road. You could self insure, but if your phone breaks after a month, you have $40 towards a new phone ....which is why I said you're SOL in any scenario.

 

[_Refurbished_]

You don't pay for Applecare the 1st year and by the time the 2nd year comes there is a new iPhone which "most" upgrade to anyway. The 3GS won't drop in resale(eBay/CL purcase) value until the next model comes out which is probably 1 year.

And in a year is when I'd want my insurance to kick in....many things are covered through Apple in the first year. Once you're out of warranty, that's when the insurance comes in handy.

 

[kage207]

The reason the insurance from BBY is different is that the other one ends once you damage it once. BBY covers it for more than once for those idiots who don't know how to take care of a phone.