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  1. #21  
    I also don't understand why you feel like they should be obligated to get you a new phone all the time. If it's such a great business, start insuring phones yourself. No one is stopping you.
  2. #22  
    I agree with KRamsauer's statement above.

    Quote Originally Posted by BMIC50
    The insurance industry hardly gets any sympathy from me, considering how they rip us consumers off on a regular basis.
    Your quote, BMIC50, is fairly typical of a consumer who knows nothing about how the insurance industry actually works. I generally believe that anyone who uses the generic "they" or "They" when referring to corporations, governement, or any other conglomerate is really just running at the mouth and spouting something they read on the internet or an e-mail chain letter. When you start to refer to specifics cases and citing facts, then your opinions and statements might carry more weight. Right now, you're just being juvenile.

    So keep living in your own private dreamland where "they" are always trying to keep you down and take your money- the rest of us will - grudgingly - continue to shoulder the burden by paying for our policies and trying to improve things through direct action - not incessant whining about being ripped off.

    Edit: Thanks for catching my gaffe, Woof.
    Last edited by Indicator; 09/27/2004 at 02:50 PM. Reason: Pointing fingers at the wrong poster!
  3. #23  
    Uh dude it wasnt dlbrummels that said that. You quoted the wrong guy.
    “There are four boxes to be used in defense of liberty: soap, ballot, jury, and ammo. Please use in that order.”
    — Ed Howdershelt
    "A government big enough to give you everything you want, is big enough to take away everything you have."- Thomas Jefferson
  4.    #24  
    Name calling aside, have you answered my question about the profit vs. the cost of keeping someone on the insurance policy? Ohk, my 'juvenile' comments of 'them ripping us off' may be just that, but if you were more mature than me, you would have educated me about insurance and would have proven me wrong with what really matters...facts!
  5. #25  
    insurance is only good for if u lose your treo or it gets stolen. otherwise its much better to get a replacement from your carrier if there is something wrong with it, tmo does it for free unless there's cracked plastic, in which case u have to pay 70 bucks.
    Last edited by KRamsauer; 09/30/2004 at 09:14 AM.
  6. #26  
    Chinnuts, watch it. We don't allow people to insult one another here.
  7. #27  
    Quote Originally Posted by BMIC50
    Name calling aside, have you answered my question about the profit vs. the cost of keeping someone on the insurance policy? Ohk, my 'juvenile' comments of 'them ripping us off' may be just that, but if you were more mature than me, you would have educated me about insurance and would have proven me wrong with what really matters...facts!
    Okay - here's some simple math.

    You purchased one Treo 600 - we'll say at retail, $599. Sprint get's exactly $0 of this purchase price, since handsets are not only subsidized by the manufacturer, but wireless carriers do NOT make money on handsets. They make money on the service. So your $599 goes to PalmOne (less the production costs, marketing, etc.) - P1 probably sees about $50 or less profit on the T600. That's an esitmate, but as a point of reference, profit margin on new Apple iMacs is about $50-100 per unit - and those cost 2 to 3 times what the Treo costs...

    You got insurance on it - $5 per month, we'll say since the launch of the Treo, times 12 months. $60.

    Thus far you're out $659. Then you lose your Treo. You pay your $35 deductible, and P1 sends you a replacement, which they make exactly $0 on, since the unit is a refurb and they had to pay to refurbish it.

    Then you lose another one. You pay another $35 - P1 again makes $0, but they've sent you three units now, at the original cost of one, and in addition they've had to pay to refurbish the two you broke.

    So P1 has now lost any profit they made from the original purchase from you - though they may get some of that back from lock/line - Sprint never made any profit to begin with - other than on the rate plan, which you'd pay with any carrier - and Lock/Line has had to pay the processing costs, purchase costs of replacement devices, etc.

    Your total costs out of pocket - $35+$35+$60+$599=$729 for three Treos
    Lock/Lines "huge" profit=$130 less costs of processing, and replacing two Treos
    P1 profit = who knows...not much.

    So how these people are making all this money off of you is beyond me...Seems like basic math. You're making out like a bandit by taking full advantage of an exceptional insurance policy not even offered with other carriers - switch to AT&T and your Treo isn't covered by lock/line.

    And, thanks to folks like you, our lock/line insurance is going up by $2 per month in January.
  8. #28  
    Indicator, nice explanation. What you have put so eloquently I would explain simply as this.

    Insurance is nothing more than a pool of people insuring each other. Sure the administrator might make a small profit to cover costs, but at $4.0/month I doubt much. Even a refurb palm costs something. The $4.0/month is meant to cover that cost. They are not in the business of losing money, so the pool must be able to support itself. If they have to cover individuals for multiple refurb and therefore begin to lose money, then it will have to raise premiums charged to the pool. That is us.

    This analogy can be applied to homes, cars, health insurance, you name it.
  9. #29  
    Quote Originally Posted by dlbrummels
    I would think the state of FLA has cost the insurance companies any profits they may see for a while !

    So, a new or refurb phone cost you $83 for your own stupidity, I hear no sympathy here for you.
    While many people that live elsewhere may have made this same assumption, I can assure you that perhaps a few companies will have lost their profits, but most survived unscathed. Why, you ask?

    After Hurricane Andrew in 1992, building codes were improved dramatically while at the same time insurance companies changed homeowners insurance policies. For example, you can have a regular ole homeowners policy like everyone else in the good ole USA. But this doesn't cover wind damage. For that you need windstorm protection (at a substantial added cost) that has its own deductible, typically 4% of the value of your insured home. So for the bulk of the damage here, the companies are paying very little due to the higher deductible and more reliably built homes. And if you have water damage, that also is not covered by your homeowners insurance. You need to have flood insurance purchased through the US Government. And guess what? It has it's own premium (depends on your flood zone) and it's own deductible as well. The typical home here (not like in all of Florida) will have very little in the way of reimbursements from their policies. Those that lost everything and had their homes destroyed will receive much more from the companies.

    For a home of 1800 sq ft, my homeowners insurance with flood and windstorm runs over $2000 per year. And it is extremely difficult to obtain. When I moved here in 1988, it cost $400.

    Now that being said, fraud is fraud and cheating on a claim form can get you into serious trouble, especially here in Florida. I have the lock/line coverage and will use it when I need to, but within the tos as stated above.

    Just my .02.
    << My command as we escape Palm HQ with a new Pre 3>>.

    Treo 300 >> Treo 600 >> Treo 650 >> Treo 755 >> Instinct >> Pre- >> TouchPad
  10.    #30  
    Indicator, thanks for your insight! It was lock/line with which I had the problem from the beginning. My cirmcumstances have required me to replace my phone twice, no matter how clumsy or intentional some may think. I do agree that I made a smart choice in signing up for the lock/line insurance, as would anyone for doing the same! But my question lies within the choice to dump a customer who still has a year on his contract, which would bring in future revenue! I dont entirely believe that Sprint and P1 are losing money just because of my situation, and I pity those who pity the large companies (like P1 whose financial gains were plastered on this site!). I understand that P1 has no affiliation with lock/line. Lock/line and Sprint are gaining profit somehow! Maybe customer service isnt a priority if (and I am figuring it is) they calculate how much can they make by doing what they do (dropping customers after 2 claims). But couldnt you make more money by KEEPING that customer throughout the completion of his contract? Or by at least pro-rating (increasing according to probability, like car insurance) the payment or deductible?
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