[Kyusaku]

I've had TEP since I got my Treo 700wx over 2 years ago. It's good to know I have the coverage, also remember the insurance covers if your device is lost or stolen. I've never had my phones break on me, but admittedly, the Treo 700wx is built like a tank. Mine has suffered countless falls(I have clumsy hands) and still keeps going. But the style of frame is very different on the Pre, with the Pre the screen covers practically a whole side and is not depressed within the hardware to protect it. Also what if the slider doesn't last, or some other problem. I'd much rather pay for the coverage, in fear of what may come. This will be a whole new style of device to me, I don't know how well it will last me so I feel better safe than sorry.

[Aero]

So 6 months in when you lose your phone, have it stolen or drop it in a stein of your favorite beverage and need to spend ~500 to replace it, would you have felt better spending an extra $7 a month or saving that $7?

Except your numbers are totally wrong. A refurbed Pre will probaly be more like $200 to $300 in 6 months.
You wont have spent $7 a month you will have spent $100 + plus $85 plus tax on the odds that you will in fact not drop it in a stein.

Consumer electronics are not investments. They fall rapidly in replacement costs.

The one problem is you can never predict what will happen, unless you're a true psychic.

Diva, I like your posts but this is ALL wrong.
You don't need to be a psychic, someone has already calculated the odds base on averages from millions of users. Who? The insurance company: Assuron!

They calculated the odds. Then on top of that they add their own costs, profit, and carrying all the fraud from users who claim loses to get a new model.

Buying warranties is like gambling at a casino.
It feels great when it pays off and you look like a genius, but the reality of the math is that in order for such an establishment to exist, most people will lose big most of the time.
...
Do the math. Count your savings every month instead of dreaming of your jackpot winnings.

Exactly. Well put.

Seeing as I've never had a phone break, get lost, or get stolen in the many years that I have had cell phones, I'm glad that I've never paid for the insurance. The problem is that the insurance is so high because it is based on the retail value of the phone and not the discount value. 2 years at 7/month and you have nearly paid for the phone all over. You could use that $200 to buy the newest WebOS device.

The only people that benefit from insurance are those that really abuse their phones.

Spot on. FYI the main beneficiary is the insurance companies.

had 2 Treo 755p's replaced because of this. Well worth it! especially for a smartphone.

Do you realize how little a refurbed 755p is?

[bubbatex]

I typically get insurance for a few months - 4-6 - until the phone is no longer "new" to me! Just something I feel comfortable with while the phone is new and would be expensive to replace. However, I have never had a claim nor a damaged phone in 4 years. I might do it for 2-3 months on the Pre.

[One_Deep]

Im gettin the insurance cause this is a new product and a new OS you never know how it can hold up or even last the keyboard might break in 7 months.

[Aridon]

Insurance is peace of mind, designed to cover items that you can't replace without it should they be lost.

If the Palm Pre fits that category then it is a good decision to pay the insurance. Like many have posted here it is obvious they charge this and make money on it as both the insurance company and Sprint take a cut out of it.

Generally for the first few months it is pretty difficult to replace these phones cheaply, this just happens to be the time when people tend to be the most careful with their new baby. After that, Ebay generally has non contract prices for the phones, you also have the refurb market and you have the local craigs list people selling theirs for whatever reason.

It is up to the individual, their needs and their finances.

[Gekko]

$7 x 12 months = $84
Tier 2 Smartphone Deductible = $100
Total = $184

Cost of New Smartphone for Premier Customers after 12 Months = $199

--

$7 x 24 months = $168
Tier 2 Smartphone Deductible = $100
Total = $268

Cost of New Smartphone for Non-Premier Customers after 24 Months = $199

--

my conclusion: it's a bad deal unless you're really clumsy and accident prone or hard on your shiit.

[rsprouse]

Im gettin the insurance cause this is a new product and a new OS you never know how it can hold up or even last the keyboard might break in 7 months.

What is the manufacturer warranty term on this? Many credit cards (Amex is what I usually use) will double a manufacturer warranty for up to an additional year if you make the purchase with the card.

Yes I am aware you can often times not pay enough for convenience. And chances are Sprint would tell you that the keyboard failure is your fault because you used your thumb instead of ring finger for typing so it is not covered. So their overpriced insurance would be useful here

[Se7enth]

What is the manufacturer warranty term on this? Many credit cards (Amex is what I usually use) will double a manufacturer warranty for up to an additional year if you make the purchase with the card.

Manufacturer warranty will most likely be for 1 year.

[Merovingian]

No. In the 10+ years i've been with Sprint, i never have and never do. I'm not clumsy, accident prone or too casual with my things.

[dkotoric]

I will get the $4 replacement plan which I have right now which enables me to exchange my phoen if anything goes wrong with it for free but not the break at my own risk coverage.

[Pearl_Diva]

Buying warranties is like gambling at a casino.

It feels great when it pays off and you look like a genius, but the reality of the math is that in order for such an establishment to exist, most people will lose big most of the time.

I have never bought an extended warranty for anything. There was one time where it would have paid off. Instead of feeling burned, I did some quick math in my head and realised the $600 I was out for the broken product was nothing compared to at least $2000 in extended warranties I would have bought to have covered every electronics purchase I'd made in the past decade.

Do the math. Count your savings every month instead of dreaming of your jackpot winnings.

It depends on the item and how important it is to you. Also the track record of the item. If it's known to fail a significant amount of the time, buy a warranty if you must have the product.

[Pearl_Diva]

Diva, I like your posts but this is ALL wrong.
You don't need to be a psychic, someone has already calculated the odds base on averages from millions of users. Who? The insurance company: Assuron!

Odds don't matter when it's YOU on the receiving end though. That's what I'm saying, you just do not know when it's YOUR turn.

Although I would say that I'd cancel the insurance after a year since the new model will be out(hopefully). It's not worth paying after the first year.

[sir_mycroft]

Where is the "HELLS NO!" button

[Aero]

Im gettin the insurance cause this is a new product and a new OS you never know how it can hold up or even last the keyboard might break in 7 months.

It has a one year warranty already included at no charge.

Odds don't matter when it's YOU on the receiving end though. That's what I'm saying, you just do not know when it's YOUR turn.

Serious odds do matter as it is not a catastrophic loss.

To insure against a non catastrophic loss, and doubly incorrect to do so on an item that drops rapidly in value an replacement cost, is a mistake.

If people wish to get insurance that's cool. But anyone even trying to use math, statistics, or odds to attempt to rationalize it is going to get a drubbing on that assertion here as they should.

The actuaries (insurance statisticians) have an expertise in statistics and all the actual loss numbers over millions of accounts.

the price and deductibles of insurance are set on the odds. You now know the odds.

Odds are this will cost you money no matter what anecdotes people post.

You are going also to hear a ten anecdotes of people who "won" at a casino for every one anecdote where someone admits the loss. If you want to "win" at the handset insurance game, there is a bet giving you house advantage -- avoid the insurance

[jason12]

If you happen to break or lose you phone you can just sign up for the insurance plan at that point and file a report.

[Gekko]

put a jar in your house and pay yourself $7 every month and don't touch it. when it comes time to upgrade or replace, you've got your money.

pay yourself first.

"Save for the unexpected, insure for the catastrophe."

[sir_mycroft]

put a jar in your house and pay yourself $7 every month and don't touch it. when it comes time to upgrade or replace, you've got your money.

pay yourself first.

"Save for the unexpected, insure for the catastrophe."

Bingo. Except I would put it in a bank or credit union and earn intrest.

[Pearl_Diva]

It has a one year warranty already included at no charge.



Serious odds do matter as it is not a catastrophic loss.

To insure against a non catastrophic loss, and doubly incorrect to do so on an item that drops rapidly in value an replacement cost, is a mistake.

If people wish to get insurance that's cool. But anyone even trying to use math, statistics, or odds to attempt to rationalize it is going to get a drubbing on that assertion here as they should.

The actuaries (insurance statisticians) have an expertise in statistics and all the actual loss numbers over millions of accounts.

the price and deductibles of insurance are set on the odds. You now know the odds.

Odds are this will cost you money no matter what anecdotes people post.

You are going also to hear a ten anecdotes of people who "won" at a casino for every one anecdote where someone admits the loss. If you want to "win" at the handset insurance game, there is a bet giving you house advantage -- avoid the insurance

I hear what you're saying, I just think the first year it would be a good precaution because it often doesn't take too much to bust up a phone or to have it get stolen. Unless Pres with clean ESNs will be going for cheap on eBay and Craig's List.