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T-Mobile Informative - Cell Phone Insurance - Don't Do It! - Cell Phone Insurance
I personally don't think that cell phone insurance is a good idea. I had an unfortunate experience of my phone falling out of my pocket, onto the ground unknowingly and my husband's car ran over it. It still worked however, the screen never regained consciousness.
I had taken out insurance when I first got service from T-Mobile and it stated that the deductible would be $35.00 at that time. Well, I had the phone for well over a year, paid $3.99 per month during the entire time and was unaware of what the customer service agent on the insurance side of things was about to tell me.
T-Mobile’s insurance rates went up – they claim to have sent a notice but of course I never received one. If I had, I surely would have cancelled the insurance immediately. It turns out that now the deductible is $70.00 and I would of course, receive a refurbished (used) phone of the same type! Keep in mind - used phones aren't even worth as much as the phone you're attempting to replace.
Because of all of this new info - I hit the roof! First of all, I didn’t pay anything for the phone. It was one of those cheap free phones, so why in the world would I pay $70.00 for it. $35.00….OK… but $70.00…heck no! Then to have paid $3.99 per month for the last 18 months; I've already paid $71.82 in monthly dues to the insurance. I thought to myself man, this is crazy!
So of course, I opted out of paying that fee and just simply chose a different phone, for the same price, but not without getting ripped off again by basically being forced to sign yet another contract for two more years – that is, if you don’t want to pay full price for the new phone that you choose. And of course, I cancelled the misleading insurance!
But I have a solution – well, maybe partial. I plan to NEVER pay for cell phone insurance again, but get a new phone every year. Why? Every time you purchase a phone, it comes with a one year warranty. Therefore, if anything happens to it (outside of getting lost), it’s covered automatically and you don’t pay a penny more for it! So buy a new phone every year (you just have to renew your contract – but if you are happy you’re your carrier, it’s no big deal because you more than likely would be with them another year or two anyway)….and you’re always covered! As I mentioned, this doesn’t help if you loose your phone, so keep mindful of it and don’t misplace it – but as long as the damage is within the warranty specifics – you will be just fine!
I had taken out insurance when I first got service from T-Mobile and it stated that the deductible would be $35.00 at that time. Well, I had the phone for well over a year, paid $3.99 per month during the entire time and was unaware of what the customer service agent on the insurance side of things was about to tell me.
T-Mobile’s insurance rates went up – they claim to have sent a notice but of course I never received one. If I had, I surely would have cancelled the insurance immediately. It turns out that now the deductible is $70.00 and I would of course, receive a refurbished (used) phone of the same type! Keep in mind - used phones aren't even worth as much as the phone you're attempting to replace.
Because of all of this new info - I hit the roof! First of all, I didn’t pay anything for the phone. It was one of those cheap free phones, so why in the world would I pay $70.00 for it. $35.00….OK… but $70.00…heck no! Then to have paid $3.99 per month for the last 18 months; I've already paid $71.82 in monthly dues to the insurance. I thought to myself man, this is crazy!
So of course, I opted out of paying that fee and just simply chose a different phone, for the same price, but not without getting ripped off again by basically being forced to sign yet another contract for two more years – that is, if you don’t want to pay full price for the new phone that you choose. And of course, I cancelled the misleading insurance!
But I have a solution – well, maybe partial. I plan to NEVER pay for cell phone insurance again, but get a new phone every year. Why? Every time you purchase a phone, it comes with a one year warranty. Therefore, if anything happens to it (outside of getting lost), it’s covered automatically and you don’t pay a penny more for it! So buy a new phone every year (you just have to renew your contract – but if you are happy you’re your carrier, it’s no big deal because you more than likely would be with them another year or two anyway)….and you’re always covered! As I mentioned, this doesn’t help if you loose your phone, so keep mindful of it and don’t misplace it – but as long as the damage is within the warranty specifics – you will be just fine!
Comments:
Posted by CrazyRedHead on 2005-10-25:
Don't count your chickens before they hatch just yet. I have worked for warranty for 5 1/2 years and being under warranty is not much better than having the insurance. There are some things that the warranty will not cover. Physical or liquid damage. Physical damage can cover alot of things, which is to many to list. You still receive a refurbished phone no matter how many times you try to exchange it. Usually you get the phone the next day, but I have see backorder times as long as 14 business days. You will get the same exact model and it may or may not work. Yes the warranty is for 1 year, this does not start over when you exchange it. Say you have had the phone for 11 months and call warranty to exchange it, the warranty does not start over but continues on for remainder of the one year. You may want to call up T-Mobile and ask them for an explanation of what the warranty covers and doesn't. If you don't want to do this, then I shall see your next complain letter soon.
Posted by Jitterbean on 2005-12-20:
the manufactures warranty will not cover: lost or stolen, water damage, physical damage such as a crack screen or broken plastics including the antenna. Yes notification was sent out within your billing
Posted by Voice of Reason on 2006-02-01:
Having a back up phone is always a good idea. If something happens you just pop your SIM card into the older phone and your off and running until you can get a new phone again.
Even if its lost or stolen, you can go to a store, get a new sim card for 20 bucks, have it activated at the store and put it in the old phone..and your off and running and the old sim in the lost/stolen phone is useless to whoever has it as its deactivated now.
Generally I agree, insurance is a poor investment. With deductables of 70 and 110 dollars (depending on value of phone) and the 4-5 bucks a month, your probably better off not getting it.
UNLESS...you have a high end phone. 110.00 is alot cheaper than having to pay another 300-600 for a PDA for example.
Even if its lost or stolen, you can go to a store, get a new sim card for 20 bucks, have it activated at the store and put it in the old phone..and your off and running and the old sim in the lost/stolen phone is useless to whoever has it as its deactivated now.
Generally I agree, insurance is a poor investment. With deductables of 70 and 110 dollars (depending on value of phone) and the 4-5 bucks a month, your probably better off not getting it.
UNLESS...you have a high end phone. 110.00 is alot cheaper than having to pay another 300-600 for a PDA for example.
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