How it Works
March 19, 2015
We get questions all the time about the warranty industry and how it works. We won’t bore you with heavy legal info and insurance talk. The simple answer is this: insurance companies give a price to the seller. That price is based off of data saying a line of products (TVs, smartphones, etc.) will break at a certain frequency. Most times, that price includes an administration fee for the claims process handling by admins or TPAs (Third Party Administrators). Those are the guys picking up the phones when you call to make a claim. That price is then given to a seller. Now, the seller can do whatever they want with the pricing. If it’s $10.50 for two years on a certain product, they have a choice of how much they want to make in profit off of it. The way today’s model works, they take that $10.50 and charge you $89.99. By giving you the hard pitch on a warranty when you’re buying your product in the store, you don’t have time to really think about it or ask questions that could really influence your decision. And, they’re counting on the fact that you don’t understand how the industry works.
At Upsie, we want you to have a choice and the information at hand to make a decision that works best for you. We also want you to have a chance to think about what your needs are. Will you keep this product for two years? Can you afford to replace it? Does it make sense for you and your family? You shouldn’t feel pressured into something that you’re not 100% comfortable with buying. That’s why Upsie gives you 60 days from purchase to review all the coverage and pricing information in the app before you make your decision. And we believe that’s how it should be!