Droids Selling for $49.00 - Why Buy Insurance?

The cheap prices are only with a new contact. Other wise your paying over 500 for a new one

 

New phones (with a new 2y contract) are heavily subsidized by VZW or the resellers; replacements are the full list price.

(Glad I have insurance at the moment, though this is the first gadget I've ever bought it on...)

 

Yep, and I don't have insurance so I just pray that nothing ever happens to it. I really think that if I had paid insurance for every phone I've ever owned I could by 2 or 3 Droids. So if I have to cough up the cash, my bad. I'm still ahead of the game.

I do have the extended warranty that goes beyond the 1 year period. I probably wouldn't have gotten that but phone is in wife's name because we get a discount through her company. She ordered that.

 

No, it only covers if something goes wrong with the phone. Like if I root it, replace the root and it dies anyways.:icon_ devil:

It's just the regular 1 year warranty extended. I have no idea about window of time to purchase it. As I said wife added it on to my Storm when I turned it over to her account for the discounts.

 

LOL because you aren't going to add a line to your account every time you break your phone and the cheap prices are with 2 year service agreements.

 

Um, I have two droids on my plan, and we pay $10 monthly in insurance for the two phones combined. That's $5 a phone. $60 per year, $600 over 10 years. So over 10 years you could have paid for about 1 droid, not 2 or 3.

 

I am paying $6 a month for insurance. Assuming I keep this phone 22 months (I doubt it), I could get a new one for $49. Otherwise, I would need to pay full retail or get a used on on eBay for $400-$500 to replace mine in the case of loss or theft.

$6 x 22 = $132. After that I could drop the insurance, as I could get a new subsidized phone if I were to lose mine. $132 to mitigate the risk of a $400-500 loss. Doesn't sound like a good deal (unless you lose your phone 3 months into your contract).

As with any insurance, it is a matter of how much risk you are willing to tolerate. In my case, I will likely be buyng a new phone in 6-12 months anyway (Droid 2?) so this is just to hold me over...