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Verizon Will Increase Warranty & Protection Plan Prices by $1.01 on July 25th

Discussion in 'Android News' started by dgstorm, Jul 9, 2013.

  1. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    [​IMG]

    Verizon's extended warranty and Total Equipment Coverage plans are about to see a rate increase. Big Red has been sending out text messages to customers sharing the details of a new price hike on these services. Both of them will go up by $1.01. This makes the extended warranty $3 per month and the TEC $8 per month. The price change will take effect on July 25th. Currently there is no word on whether this will be considered a material adverse change in pricing which would allow customers to wiggle out of their contracts.

    We will keep an eye on this for more info, but please sound off in this thread if you find anymore details before we do.

    Update: We have a couple of updates to this story to share thanks to our tipster, combatmedic870. First, this new pricing change for the extended warranty only applies to Android and Windows devices. This is because it is already $9.99 for the iPhone. Second, according to Verizon, the reason they had a price increase for these services was supposedly because the insurance companies had a price increase. Obviously, there is almost no way to confirm this to be true, but it would not at all be surprising. This may not alleviate the frustration much for some but we felt it was at least worth sharing.

    Thanks combatmedic870!
  2. Miller6386
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    Miller6386 Developer Developer

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    If it allows me to break my contract I will be done with them. I could see if vzw was reporting loses but they are no where near losing any money.

    Suggested from Beer Tent Capital of the World.
    1 person likes this.
  3. Narsil
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    Narsil Active Member

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    WHY????

    "Because we can, Chumps!! Who's going to leave over $1.01??"

    [​IMG]

    It really makes me enjoy the "Suck it Verizon" on my rooted SGNII.
  4. jseah
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    jseah New Member

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    I don't believe that this would be grounds for leaving without paying an ETF. After all, the insurance is optional and you don't need to get it. If you drop the insurance, then the price hike doesn't affect you at all.
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  5. daimien
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    daimien New Member

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    Realy ypur going to makea big deal its only 1 dollar
  6. dezymond
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    dezymond RS Lead Premium Member

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    Never needed any protection plan from them and never will. Pretty bogus how they increased it though for those who do choose to buy it.
  7. combatmedic870
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    combatmedic870 Well-Known Member

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    I would/will. Just because I dont like them.
  8. kodiak799
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    kodiak799 Well-Known Member

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    Companies don't look at the bottom line for programs like this, they look at the individual program.

    I flushed money down the toilet on this for 2-3 years. You are now talking $132 a year for a phone most people replace every two years, any way. I figured I could go back to an old phone for a while if need be. That insurance is as much as the subsidized upgrade price every two years. I'm a damn fool for paying $8/mo for insurance for 3 years = $300 down the drain.

    Always and everywhere, these types of insurance plans are sucker plays. Unless you lose/break your phone a lot, then it makes sense. Might be why prices are rising, because as the price goes up only people likely to have a claim are going to flush that money down the toilet.
    2 people like this.
  9. Miller6386
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    Miller6386 Developer Developer

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    It's not the fact it's a $1 it's the fact that all they do is up prices on everything. They cut data packages and charge more for them, but try to spin it as being cheaper. I'm just tired of the horrible customer service and how they treat us though they own us.

    Suggested from Beer Tent Capital of the World.
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  10. johnomaz
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    johnomaz Well-Known Member

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    You're talking about 1 dollar over how many millions of customers every month. Plus, its one dollar on both protections so its double the increased profits. I'm sorry, but yes, it is grounds for leaving.
    1 person likes this.
  11. Miller6386
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    Miller6386 Developer Developer

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    I would be ok with it if they said ok sorry but parts prices are going up or gave a good fund they were going to apply the proceeds to. Maybe work on getting coverage in dead zones, or maybe even say with the added cost we will cover 1 device per contract per line for physical damage, theft or lose. But they just announce they are upping the rates and gave no good reason other then the fact that if you want the insurance then you will pay for it no matter what they do with the policy or rates.

    Suggested from Beer Tent Capital of the World.
  12. jseah
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    jseah New Member

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    I used to feel the same way too. Why bother paying for insurance when I have extra phones around and upgrades coming up. Now that I am paying full retail for devices in order to keep unlimited data, then paying for insurance makes sense. Paying $8 a month plus $99 for a deductible is cheaper than paying $700 for a new handset.
  13. kodiak799
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    kodiak799 Well-Known Member

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    That's $96/yr, PLUS $99 is you have a claim. You're break-even is 6 years. Personally I've lost or broken only 1-2 phones in the past 14 years.

    And if I'm going to upgrade in 2-3 years, anyway, then it's also trivial if I lose/break it a few months before - just upgrade a bit earlier or later to balance it out.

    You almost always lose on insurance plays like this. Maybe take better care of your phone, otherwise that's an extra $100 a year you're burning. Actually, I never buy warranties of any kind or insurance on electronics or appliances - sometimes I am going to lose, but I know I've saved a lot of money this way.

    The problem is you are only thinking about this in terms of your phone and what happens if you lose your phone rather than your tech/luxury spending as a whole...that's how people incorrectly rationalize such a purchase choice.
  14. TatDroid
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    TatDroid Active Member

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    I might go along with an argument for insurance on a brand new phone, but after about 6 months it gets harder to justify. And I would NEVER continue with insurance on a phone that is a year old or more. A 1 year old phone can be replaced on CraigsList for $200, so why pay $200 for insurance and replacement fees over that second year?
    1 person likes this.
  15. kodiak799
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    kodiak799 Well-Known Member

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    Well just consider that you lose/break your phone after a year: $100 in monthly insurance costs, plus he $99 "deductible"...for a refurb/replacement phone that, as you said, can be had on Ebay/Craigslist for about that price.

    Really, you'd have to lose/break a phone about every 6 months to justify the insurance. Over an expected two years, you're talking an extra 30% for the phone to have insurance. That's simply bad financial management.
  16. pc747
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    pc747 Administrator Staff Member

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    Even at an extra $24 ($1 x 24months - length of a 2 year contract) I would still keep the insurance. You pay 299 for a phone (or if you wait a few months $199) that is worth 700-800 retail. God forbid something happen like you break it or it is lost or stolen. You go to verizon and get a new phone even with the $100 deductible you only paid $300+$100+192 ($8x 24 months)+ 72(3x24) = 664 + tax so lets say $680 for two smart phones (one lost/damaged). I have no issue with the insurance.

    Now where I do understand where people are coming from is that people are getting tired of vze nickeling and diming them to death. The avg customer probably spend $110 per phone x24 month= 2640 add that to the above and in 2 years you paid 3320 to vzw (1660 per year). Those figures are only taking into account one smart phone line. People on Family share plans with multiple lines may be paying close to twice that amount. A change in price that is only $1 is not the issue it is the $1 here, $5 there, etc and after awhile you look up to see your bill has went up almost $30 - $40 bucks. That is enough to cause for concern especially for those on a tight budget.
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  17. kodiak799
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    kodiak799 Well-Known Member

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    I'm not going to say ditching insurance has made me more careful with my phone, but I have dropped and banged it a few times. They aren't as fragile as people believe.

    It just boggles my mind, the way people complain about what they pay, that most throw away even more money on insurance. Insurance and extended warranties are huge money makers for most retailers. If you don't have a $500 deductible on your home or auto policy (and you shouldn't be that low), then it's simply irrational to insure a phone.

    For that matter, paying retail is a whole other debate. Am I really getting $400-$500 value of buying new vs. picking up a used 1-yr old phone?

    I should just quit now because inevitably someone will read this, cancel their insurance, and then lose their phone tomorrow.
  18. xeene
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    xeene Well-Known Member

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    chances are verizon is preparing to roll out next phase of lte network, aka advanced lte. so they're stuffing their piggy bank prior to upgrade. aslo, insurance isn't worth it as the phones are worth 1/2 the price after first year. galaxy s3 is selling for $300 on swappa. first year the phone is covered by manufacturer warranty. unless you're clumsy or unluckiest sob on the planet, it's ALWAYS a waste of money otherwise companies wouldn't be banking on it.
  19. trestevenson
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    trestevenson Active Member

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    This was reason enough for me to cancel the insurance I was paying on my Galaxy Nexus. The older I get, the more careful I am with my devices. I haven't needed to file a claim on a phone since 2008. For me, it wasn't worth it to keep paying $5.18 per month for "peace of mind". I use cases, stay away from water, and have a job that isn't physically demanding. I'll take my chances.
    1 person likes this.
  20. dgstorm
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    dgstorm Editor in Chief Staff Member Premium Member

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    OP Updated with some new info which might add to the discussion.
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