iPhone Insurance/Warranty

[UmichAg]

I am in the market for an iPhone and am struggling with the decision about Warranty/Insurance. There are dozens of threads on here, but the few valuable comments are dispersed among these threads. Thus, the point of this thread is to consolidate the information into 1 user-friendly thread. Below is what I have learned. There is still quite a bit of missing information, so I’d appreciate any helpful replies. I’ll later update my post to incorporate these comments. Thanks!

Possible problems with an iPhone:
-Screen crack
-Hairline cracks in casing
-Malfunction of components
-Software malfunction
-Water damage
-Battery replacement

Possible insurance/warranty programs:
-AppleCare
-SquareTrade
-Safeware
-BestBuy
-Credit card company
-Home/Auto insurance company

AppleCare:
http://www.apple.com/support/products/applecareiphone.html
-Cost: $70 regardless of model
-Term: adds an additional year of hardware support. Extends phone support until 2 years from purchase.
-Covers: Parts, cracks in casing, & software functionality, battery suffering from 50% loss (though some users have said Apple is liberal about this).
-Pros: no deductible for service, convenient service (if you live near an Apple Store)
-Most people recommend not getting AppleCare until 360 days after purchase.


SquareTrade:
http://www.squaretrade.com/pages/iphone-landing24
-Cost: $96 for the 16GB model (price varies by model) + $50 per claim
-Term: 2 years
-Covers: Everything under AppleCare + accidental drops and water damage. [limited software coverage]
-Pros: gives you money so that you have the option of getting a different phone in case your iPhone is not fixable; free shipping


Safeware:
http://www.safeware.com/
-Cost: $87/year (for 16GB 3Gs)
-Term: 1 year
-Covers: Everything under SquareTrade + theft, fire, flood, power surge. [limited software coverage]
-Pros: a lot of coverage?

Best Buy:
http://blacktie.geeksquad.com/
-Cost $15/month
-Covers: All accidental damage (except water)
-Pros: convenience? Get a loaner phone while original is being repaired

Credit Card Company:
-AMEX Gold covers up to $1000 for first 90 days? extend warranty?
-Visa & Mastercard covers up to $500 for first 90 days? extend warranty?
[this section needs more info]

Insurance Companies:
-USAA’s home owner and renter’s insurance covers iPhones stolen, lost in fire, or auto accident
-State Farm sells iPhone insurance for $35-45/year (dependent on state and iPhone model). Covers theft, breakage, water damage (but not battery or software)

Noncoverage:
-If you don't have one of the more "premium" coverage plans, Apple will replace your broken iPhone with a refurbished one for $200.


Again, please post helpful comments & information below. Hopefully this will turn into a good resource link for others. Thanks!

 

[55test55]

i have mine insured thru state farm. $35 and it covers anything that can possible happen to the phone. just showed them my receipt as proof of ownership and i think they briefly looked at the phone to see it wasnt messed up.

 

[UmichAg]

Thanks. Can you elaborate more? Is there a deductible? Does it just cover total loss or does it cover minor repairs?

 

[greenlander]

Umich -- good list. A lot of people are in the dark about this issue.

There's lot of similar info here regarding iPhone insurance, with a bit more detail on the credit card and homeowner's/renter's iPhone insurance options.

The problem with Safeware is the high cost (almost double the competitors) plus there seems to be less info out there on them in terms of reviews/ratings/etc (unlike AppleCare and Squaretrade). Otherwise, it is nice that they offer the theft protection. With Squaretrade covering drops and spills and AppleCare not -- it is hard to see why anyone would opt for AppleCare.

Homeowners/renters insurance riders seem to be the cheapest, but many providers won't offer policies and often the time for claims to be paid is very slow which isn't much good to people that need their phone replaced ASAP. If you can wait, and your provider is informed, it is definitely the most economical way to go.

 

[Matty520]

i have the coverage through bestbuy for 15/month and its pretty good, about a week turnaround to get a new phone and you get a loaner in the meantime so it's not that bad

 

[Lara F]

I was told back in August/Sept that State Farm had recently stopped offering iPhone insurance - can anyone confirm if this was nationwide or just my state (NY)?

 

[ucfgrad93]

For me, I just bought AppleCare. Best Buy's 15/month plan will add up to $360 over the 2 year contract period. To me, that is too much money.

 

[eplchamps0305]

i have the coverage through bestbuy for 15/month and its pretty good, about a week turnaround to get a new phone and you get a loaner in the meantime so it's not that bad

That's a ridicoulous price, plus it does not cover loss or theft.

 

[yukong]

I was told back in August/Sept that State Farm had recently stopped offering iPhone insurance - can anyone confirm if this was nationwide or just my state (NY)?

I live in Oklahoma. Just added it today through State Farm. I have a 32gb
3Gs. My coverage cost $45 per year. I have my cars and life through State Farm and they added it to my monthly draft that I already pay. It added about $3.50 to my monthly bill. Not bad coverage. Covers everything with NO deductible. Pretty good deal if you ask me. Covers loss, theft, breakage, water damage, etc...everything but battery and software issues. But that is easily fixed anyway.

 

[Lara F]

You're very fortunate to have that option then. Sometime I'll go back to State Farm and try again, but I doubt I'll get lucky.

 

[ksoze]

For me, I just bought AppleCare.

Nothing wrong with AppleCare as a warranty extension for those who feel they need it, however it is not insurance. It basically extends the warranty period beyond the initial but does not include nor add replacement from theft, damage, water, etc.

 

[alent1234]

you probably need a homeowner's policy or renter's insurance for the loss part. too bad that if you file a claim it will screw you with higher rates since you will get into CLUE