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

[dgstorm]

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!

 

[Miller6386]

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.

 

[Narsil]

WHY????

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

It really makes me enjoy the "Suck it Verizon" on my rooted SGNII.

 

[jseah]

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.

 

[daimien]

Realy ypur going to makea big deal its only 1 dollar

 

[dezymond]

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.

 

[combatmedic870]

Realy ypur going to makea big deal its only 1 dollar

I would/will. Just because I dont like them.

 

[kodiak799]

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.

 

[Miller6386]

WHY????

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

It really makes me enjoy the "Suck it Verizon" on my rooted SGNII.

Realy ypur going to makea big deal its only 1 dollar

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.

 

[johnomaz]

Realy ypur going to makea big deal its only 1 dollar

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.

 

[Miller6386]

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.

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.

 

[jseah]

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.

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.

 

[kodiak799]

Paying $8 a month plus $99 for a deductible is cheaper than paying $700 for a new handset.

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.

 

[TatDroid]

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?

 

[kodiak799]

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?

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.