Smartphone protection is a good thing when it’s affordable
January 28, 2016
If you have never been there, chances are that you will be there at some point in your phone’s life…
There it is, your phone lying on the ground because you forgot it was on your lap when stepping out of your car. You reach down, please not today, you think to yourself as you lift it up off the pavement. You turn it over and there it is… a screen full of cracked glass.
Let’s be honest, this phone is your everything. It is your best friend, way more reliable than your real best friend. The moment you purchased this phone you said, “I do, until death do us part.” Well, it appears that death hath cometh, so we must part.
If you are like most people, you are still making monthly payments on this smartphone, or you are under some type of 2-year agreement and would have to pay out-of-pocket for a new one. As much as you wouldn’t mind a brand new smartphone, the last thing your checking account can handle is dropping $600 unexpectedly.
Then you remember the sales person at the phone store had asked if you wanted smartphone protection when you first bought the device. You respectfully declined, as he said, “Are you sure? I know I would buy it if it were me!” If you had done that, you would be covered in this situation. Fortunately you didn’t, as you would be getting a rotten deal.
Wireless carriers typically will charge anywhere from $7 to $15 per month for you to warranty your smartphone against malfunctions, drops, spills, etc. This monthly payment is paid for over the life of your phone, which for many people is 24 months.
If you do the math, that equates to a lifetime value of $168 to $360. That is a lot of dough to be throwing around! Not to mention, when you go to make a claim, you often have to pay a $150 deductible.
The monthly cost of smartphone insurance is one thing, but that $150 deductible will whack you every time. Why is this cost so high? There are a number of reasons for this:
Fraudulent claims – By having a high deductible, you are unlikely to make a false or fraudulent claim.
Reduced likelihood to make a claim – You will think twice before making a claim knowing it will cost you $150.
Replacement costs – This is the real reason! When you make a claim, they typically will replace your smartphone with a refurbished version that usually costs around $150.
What this means is not only are you paying upwards of $15 per month for the warranty, but you’re also paying for the refurbished phone in full when you go to make a claim.
You essentially are paying for the right to make a claim. It is what we call highway robbery.
There needs to be a better way. There needs to be a cost effective solution. If you had known about an affordable way to protect your phone when you bought it, you wouldn’t be in this scenario.
This article would not exist if a solution were not possible. That’s why we created Upsie, check out our smartphone warranty to see how little it will cost to save you from the nightmare of living without a fully functioning phone.