Asurion Complaint - Exorbitant Increase in Cost of Warranty
SAN MATEO, CALIFORNIA -- I received a letter from this company advising me that the monthly charge for replacement/repair insurance coverage was being increased from $1.99 per handset to $3.99 per handset. While this is a small dollar increase in cost it is over a 100% increase in cost which is exorbitant and, in my opinion, constitutes price gouging of the consumer by this company. I called the company and immediately canceled the coverage.
Asurion is the largest device protection company in the world with over $3bn in revenue. Today it has over 90m monthly pay subscribers and is the largest warranty provider in the US retail industry.
It is no surprise to me that a company of this size, because of limited competition, thinks it can resort to small dollar increases which are over a 100% increase in cost to gouge their customer and they can get away with doing it and it will go unnoticed.