Droids Selling for $49.00 - Why Buy Insurance?

Discussion in 'Motorola Droid' started by cuskit, Mar 6, 2010.

  1. cuskit
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    cuskit New Member

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    Okay - now that the Droid prices have dropped so much, and with deductibles about $90.00, why are we still paying for insurance? Wouldn't be be better off just purchasing a new phone off walmart.com or one of these places selling the phones for under fifty bucks? Or are these prices ONLY with plan renewal or new plan? I mean - we are paying the price of a new phone in just five months or less premiums, forgetting the deductible.

    Any thoughts? cuskit
  2. cuskit
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    cuskit New Member

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    Hmmm - just checked the Wirefly ad - "replacement" phones are well over $500.00! Is Wally world and the others the same? cuskit
  3. MotorolaDroid
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    MotorolaDroid New Member

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

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    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...)
  5. hookbill
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    hookbill Premium Member Premium Member

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    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.
  6. cuskit
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    cuskit New Member

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    Hook,

    I'm not familiar with the extended warranty. Is that through VZW? And I'm assuming that would not cover breakage, loss, theft, etc? And did you have to purchase with the phone, or within a certain window of time? TIA - mike :)
  7. hookbill
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    hookbill Premium Member Premium Member

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    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.
  8. cuskit
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    cuskit New Member

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    Okay - I follow you now, I wasn't thinking about the manufacturers warranty. I'll touch base with my local store manager and see what he can tell me - perhaps it might be worthwhile adding to the year if still possible (I purchased on Nov 22nd). Thanks for the quick response! :) mike
  9. Matth3w
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    Matth3w New Member

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    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.
  10. silvere2
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    silvere2 New Member

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    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.
  11. ZBoater
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    ZBoater New Member

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    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... :D
  12. cuskit
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    cuskit New Member

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    That's a very valid point! I've used Asurian 3 times to replace phones in the past (not my droid). All three were $50.00 deductible (you have to add that fee to your calculations per incidence). Though they were certainly cheaper phones (all 3 motorolas) it was still better than buying a new phone - and they were overnighted to me. In addition I was able to keep my battery and charger - yet they sent new ones with the replacement phone. Oddly - I could not tell if they were new phones or refurbs - all looked brand new to me.

    Given my history (dropped the first one, broke the glass on the second and third - don't ask...) I'll willingly pay the premium (mine is 5 bucks per month). So I guess we keep the insurance as it appears these cheaper prices are only with plan renewals or new activation (or secondary lines). :( mike
    Last edited: Mar 6, 2010
  13. STVA
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    STVA New Member

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    Personally I think that you should never buy insurance for items that you can replace with cash. You have insurance on your house and car because you can't replace them out of pocket. Just do the math: Add the premium for the life of the contract, plus the deductible to replace the phone. I bet you can buy a lightly used Droid off of eBay or craigslist for less than that, especially in a few months.

    If you break phones all the time, just take better care of your stuff. :) I'm careful with my stuff and have never broken one.
  14. hookbill
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    hookbill Premium Member Premium Member

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    You're right. I was talking without thinking. 5 bucks a month is cheap.
  15. jayb
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    jayb New Member

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    Thats great hope you never have one stole or broke. you are so smart that I cant wait for it to happen to you. WOW! go figure more $$$$$$ than brains

    For STVA
  16. jayb
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    jayb New Member

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    I can't believe some people.......$50 to replace a $600 phone.........O BTW only pay 5.99 a month ins.......3 months so far.
  17. KZIWarrior
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    KZIWarrior Active Member

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    With cheap phones you could argue that but not with smartphones like the Droid:
    $7/month x 18 months* + $90 deductible = $216... You can be nearly guaranteed that the price of the Droid (off contract) will not go below $216 within the 18mnths* you would need/want it. Personally I treat my phones VERY well but smart-phones in general don't long (USB failure and/or screen damage are almost assured before your 18mnths is up). Add to that flashing ROMs (and for the Droid OC'ing) and the amount of high use most smart-phones get... 18 months is stretching it.

    *18 months assumes the standard 2 year contract which allows you to upgrade/renew 6-months prior to contract expiration.
  18. jayb
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    jayb New Member

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    Thank you!!
  19. cuskit
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    cuskit New Member

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    First - I am very careful with my Droid - certainly more so than my last 3 dumb phones. But I do work in a trade that is "hazardous to Droid health". As such I pay close attention at all times to the careful handling of my phone. That being said - I feel the possibility of the phone breaking, losing it or getting it stolen are NOT worth the risk for a $600 phone. And I seriously doubt any good Droid will be had for just a couple hundred or less in 22 months (my new every two)... As if I'd take a chance on an eBay phone anyway. My business depends on the communications realized with my phone. It's mandatory that I have a quality, working phone at all times.

    And if you need to know - yes, I could easily buy a new car "out of pocket". I would hope most responsible adults have made enough investments and wise savings so that if necessary they could purchase a new car. Heck - using your analogy - I can easily buy a replacement for my 2006 F150 on eBay Motors - tons of "lightly used" trucks on the market. Yea right... In a pinch I could also buy my house if necessary, though I'd have to juggle my investments a bit. That luxury results from the same frame of mind that affords me a decision like insuring a $600 phone for only five bucks per month. And I don't make that statement lightly. It's just business. Any good accountant could advise you of the wonderful insurance premium deductions allowed for businesses. Perhaps that was not in your equation?

    Nope. Me - as I stated - I'll happily pay my 5 (@$2.50 after tax breaks) bucks per month and have ease of mind knowing that I will never be without my Droid for more than 24 hours at the most.:)

    Sleeping well nights - mikey :)
  20. STVA
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    STVA New Member

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    I don't believe that $600 is a fair number to use for replacement, no one buys them new at that price and you can buy one off of eBay for less. The insurance company sends refurbs anyway, don't they?

    I'm all for everyone making the decision they feel the most comfortable with. :) I just hate to see some people spend extra money if they haven't done the math or really thought about what they are buying. There are people out there who also buy "extended service plans" from Best Buy that are basically throwing their money away.
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