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Assurion vs Upgrade

I was eligible for the new every 2 upgrade back in November. I have not used it. I have an iPhone 4 (16gb) and I'm paying $9.99 a month for assurion insurance. If i loose my phone I have to pay $169 non-refundable deductible for a replacement. However, if I use my upgrade I can get a replacement iPhone for nothing. 3 questions.

1. How long do I have before I have to use my upgrade before it goes away ?

2. Can assurion insurance be canceled at any time ?

3. Doesn't it make sense to canx. the assurion insurance ?

Comments

unknown

I am confused by your post. New every 2 went away long ago, I believe. Anyone can buy a new phone with a subsidized price by signing a new 2 year contract as long as you are at the end of your current contract or are a new customer. Basically, you can purchase a $600 phone for $200 (approximate). In my opinion, insurance on a cell phone makes little or no sense, especially $9.99 per month. That's crazy.

richie72846

All I know is that today while in the Verizon store the sales girl checked my account and said I am eligible for an upgrade and a new iPhone would cost me ZERO. I don't agree with your opinion that $9.99 a month is crazy. A new iPhone cost $600. At $9.99 a month it would take 5 years to pay for an iPhone.

unknown

So, why did you ask for opinions? An IPhone 4 is free. IPhone 4S is $100, IPhone 5 is $200. Those are the upgrade price and don't include a New Every Two discount. That program ended over 2 years ago and the last discounts expired 4/15/2013, I think. Insurance on a cell phone makes no sense. You have to figure the odds you will ever file a claim and collect, the deductible, and the premiums. For $9.99, you could insure a car or small house or sizable life insurance policy. Suppose there is a 25 percent chance you will file a claim and collect. That would give you a EMV of $150 less $169 deductible less the premium payments. If this claim happened after 13 months, that would generate a lose of $149. Put the $9.99 per month in your Roth IRA.

spitxfire

If you don't want insurance that's fine, but for smartphones I think you definitely should. I have a basic phone still and opted out of having the insurance, full retail for a basic phone is still under $200, while a smart phone is not. When your phone breaks don't come crying to Verizon about it.

Don't forget the $30 upgrade fee for your iPhone 4 if you do go for it.

HawaiiBKC

1. How long do I have before I have to use my upgrade before it goes away ?

Upgrade doesnt go away. You have it forever.

2. Can assurion insurance be canceled at any time ?

Any time.

3. Doesn't it make sense to canx. the assurion insurance ?

If you seem like you're careful with your phone, yes.

Although, if you do lose your phone / break it / get it stolen you'll be out hundreds of dollars.

richie72846

Thanks HawaiiBKC for the answers.:smileyhappy:

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