Cellphone insurance

[Nate tha' Great]

My friend and I had a little discussion about this. After losing his cellphone recently, he bought a new phone, but also bought cellphone insurance, the parameters of which are as follows:

- Monthly charge of $4.
- If he loses or damages his phone, he's allowed to replace it with the same model for $50. The phone he has retails for around $200.
- The insurance lasts for as long as he maintains a contract with his current provider (or he elects to terminate his insurance). He has roughly a year and a half remaining on his current contract, and can renew it in two-year intervals under the same terms. Let's assume for purposes of this discussion that his contract is a reasonably good deal at the present time.

Is the insurance +EV? Does it depend on how much of a klutz he is? What would Sklansky say?

[fluxrad]

Did your friend also take the 6 free issues of Sports Illustrated from Best Buy when offered?

[Nate tha' Great]

[ QUOTE ]
Did your friend also take the 6 free issues of Sports Illustrated from Best Buy when offered?

[/ QUOTE ]

On a recent trip to Best Buy, the [censored] clerk got herself so flummoxed while trying to sell me various "free" things that she rung up my order wrong and I wound up getting this badass playstation game (http://www.amazon.com/exec/obidos/tg/detail/-/B00075GLU6/qid=1113713545/sr=8-2/ref=pd_csp_2/103-2023656-5031039?v=glance&s=videogames&n=507846) for free. So that SI offer is definitely +EV IMO.

[fluxrad]

Check your HTML. You accidentally linked to "Fight Night."

So what was the badass game you got for free?

[[censored]]

[ QUOTE ]
Check your HTML. You accidentally linked to "Fight Night."



[/ QUOTE ]

definently bad ass.

[MarkL444]

PS2 sucks. phone inurance is probably +EV for a few months, not forever.

[fluxrad]

[ QUOTE ]
PS2 sucks.

[/ QUOTE ]

I'm sorry, the correct answer was: "PS2 is the way and the light and you are a giant douche if you don't own one."

How much did you wager?

[Alobar]

I had my old phone for close to year until I broke it accidently. So I go buy a new phone, was like $300, guy tries to sell me the insurance, i think to myself "[censored] that, what a rip, im not gunna break ANOTHER phone" . Here I am 4 months later using a phone that barely works because I dropped it in the pool on accident. R%$#$%#^@#%$^ !!!!! I wish I had insurance on it now.

If you dont use a cheap phone, and dont want to buy a cheap phone should something happen, I definately think the insurance is +EV.

On a semi related side note, I have to say samsung makes a damn good phone, cuz after I dropped it in the pool, I dropped it in the pool again like two weeks later (yes, im a dumbass) and it STILL works......it works poorly, and its annoying as hell, but it does actually work.

[Patrick del Poker Grande]

As long as you're not a retard who busts his phone every other month, then this insurance is the lamest, most dumbass deal I've ever heard of.

[MarkL444]

ive had one, it sucks.

[LALDAAS]

+EV I drink ALOT! I didnt but a friend of mine flushed his phone.

NO REALLY I swear it wasnt me!

He was text messaging his girl, Flushed, droped the phone, Bye Bye phone.

My girls brother left his phone in his pants his ma dukes wahed them. yup! amazing right!

Get the insurance [censored] happens

[Patrick del Poker Grande]

[ QUOTE ]
+EV I drink ALOT! I didnt but a friend of mine flushed his phone.

NO REALLY I swear it wasnt me!

He was text messaging his girl, Flushed, droped the phone, Bye Bye phone.

My girls brother left his phone in his pants his ma dukes wahed them. yup! amazing right!

Get the insurance [censored] happens

[/ QUOTE ]

You missed the opening clause of my statement. Here it is again for you: [ QUOTE ]
As long as you're not a retard...

[/ QUOTE ]

[LALDAAS]

[ QUOTE ]
[ QUOTE ]
+EV I drink ALOT! I didnt but a friend of mine flushed his phone.

NO REALLY I swear it wasnt me!

He was text messaging his girl, Flushed, droped the phone, Bye Bye phone.

My girls brother left his phone in his pants his ma dukes wahed them. yup! amazing right!

Get the insurance [censored] happens

[/ QUOTE ]

You missed the opening clause of my statement. Here it is again for you: [ QUOTE ]
As long as you're not a retard...

[/ QUOTE ]

[/ QUOTE ]

Point taken but does drunk = retardism

[PassiveCaller]

When you break enough phones so that the cell phone insurance doesn't want you... I think it was +EV to begin with :-)

[astroglide]

when you break/lose a phone, you usually have to get a refurb from your provider (and only that after some haggling). once you do, it usually doesn't have a warranty. the insurance doesn't provide a warranty either, but it covers theft. if you get insurance for a refurb and it sucks, you can "lose" it to get another one so it could provide a decent "warranty" for it until you use it long enough to trust it.

[scrub]

All of these policies are massively -EV unless you are in some especially risky category that most people who buy phones aren't in.

I used to work in an appliance store in high school, and everyone used to get huge sales incentives on the similar extended service plans b/c they were such a high profit margin sale.

Consumers are much worse at pricing this sort of policy than insurance companies are, so the company is able to get a huge overlay.

scrub

[rmarotti]

[ QUOTE ]
PS2 sucks. phone inurance is probably +EV for a few months, not forever.

[/ QUOTE ]

[scrub]

[ QUOTE ]
[ QUOTE ]
PS2 sucks.

[/ QUOTE ]

I'm sorry, the correct answer was: "PS2 is the way and the light and you are a giant douche if you don't own one."

How much did you wager?

[/ QUOTE ]

Flux: ain't nothin' wrong with that....

scrub

[Rockatansky]

I don't know whether spending $4 per month on cell phone insurance is +EV. However, spending $200 on a cellphone is definitely -EV. Why not just get a phone that is either free or of negligble cost when you sign up for your plan?

[handsome]

IMO it's +EV regardless of how much of a klutz you are. As someone said before, sh!t does happen whether it's a result of your own irresponsibility or not. i.e. someone robs you. It's getting easier these days to damage/lose phones as they get smaller and more delicate. I have dropped two phones, one time the display got messed up and the other I lost all sound (both covered by insurance). To me, getting insurance is like putting a quarter in a parking meter. Of course you can opt to save your quarter but every once in a while you'll get that $20 ticket and regret not putting a quarter in.

One thing to note is that the replacement phone doesn't come from the service provider itself (Verizon, T-mobile, etc) but comes from an independent company that usually refurbs used/broken phones. Also, if you lose your phone, you'd have to file a police report and get a claim number.

[JaBlue]

why do people constantly buy such expensive phones? I've had the same $50 phone for 2 years and its perfectly fine. I have lost it for couple days at a time but it always shows up. I'm just absent-minded as [censored].

Anyway, a better solution for your friend is just buying a cheaper phone. Why does he really need color and video etc.?

[MelchyBeau]

[ QUOTE ]

why do people constantly buy such expensive phones? I've had the same $50 phone for 2 years and its perfectly fine. I have lost it for couple days at a time but it always shows up. I'm just absent-minded as [censored].

Anyway, a better solution for your friend is just buying a cheaper phone. Why does he really need color and video etc.?

[/ QUOTE ]

I have a Palm Treo, and I love it. Palm/blackberry phones are definitly +ev

Melch

[Drunk Bob]

The insurance "rake" on anything less than life changing losses is -EV.

Your House,Your Life(if you have dependents)and of course

Cellphone insurance /images/graemlins/cool.gif

[JGalt]

Unless You have one of these, -ev for sure.

http://www.outofrange.net/blogarchive/archives/phone.jpg

[Voltron87]

Don't get cellphone insurance unless you're retarded. And I'm actually serious, if you're retarded, it is probably a good idea.

[fluxrad]

You forgot

http://www.cellular.co.za/phones/motorola/2004/motorola-RAZR-2.jpg

The Razr is just SEX!

[JGalt]

[ QUOTE ]
You forgot

http://www.cellular.co.za/phones/motorola/2004/motorola-RAZR-2.jpg

The Razr is just SEX!

[/ QUOTE ]

Love that phone. Looking at buying it, but just bought a Nokia. Bad purchase on my part. /images/graemlins/confused.gif Still wouldn't buy insurance for the Razr.

Razr = $500.00 +/-
Vertu = $8000.00 +

[willie]

[ QUOTE ]
-
Vertu = $8000.00 +

[/ QUOTE ]

what the hell?

[fluxrad]

[ QUOTE ]
[ QUOTE ]
-
Vertu = $8000.00 +

[/ QUOTE ]

what the hell?

[/ QUOTE ]

I think it comes with a free blowjob.

[JGalt]

[ QUOTE ]
[ QUOTE ]
-
Vertu = $8000.00 +

[/ QUOTE ]

what the hell?

[/ QUOTE ]

vertu (http://www.vertu.com/flash/index.jsp)

[Jeff W]

[ QUOTE ]

Vertu = $8000.00 +

[/ QUOTE ]

Does it wipe your ass for you?

[Alobar]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
-
Vertu = $8000.00 +

[/ QUOTE ]

what the hell?

[/ QUOTE ]

vertu (http://www.vertu.com/flash/index.jsp)

[/ QUOTE ]

wow, anyone who would waste 8 grand on that is a moron. Its like people that buy $5,000 pillows and [censored]. OR that shower curtain awhile back that was like 10K.....Its nothing more than a status symbol.

When I'm super rich someday Im gunna start a company and I'm just gunna take normal everyday stuff and sell it for like 2000000x what its worth, and I bet stupid rich people will buy it. "oh, I only whipe my ass with $500 rolls of Alobar brand toilet paper" "Ugh, I wouldnt dream of using any toothbrush but my $2K alobar brand tooth brush". Im gunna make a fortune! heh

[The Stranger]

[ QUOTE ]
[ QUOTE ]

Vertu = $8000.00 +

[/ QUOTE ]

Does it wipe your ass for you?

[/ QUOTE ]

Its 9K if you eat chili.

Sorry, somebody had to say it.

[Shoe]

All insurance is -EV, including car, health, home, etc....

It is just a matter of how much of your own money are you willing to leave at risk.

[JGalt]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
-
Vertu = $8000.00 +

[/ QUOTE ]

what the hell?

[/ QUOTE ]

vertu (http://www.vertu.com/flash/index.jsp)

[/ QUOTE ]

wow, anyone who would waste 8 grand on that is a moron. Its like people that buy $5,000 pillows and [censored]. OR that shower curtain awhile back that was like 10K.....Its nothing more than a status symbol.

When I'm super rich someday Im gunna start a company and I'm just gunna take normal everyday stuff and sell it for like 2000000x what its worth, and I bet stupid rich people will buy it. "oh, I only whipe my ass with $500 rolls of Alobar brand toilet paper" "Ugh, I wouldnt dream of using any toothbrush but my $2K alobar brand tooth brush". Im gunna make a fortune! heh

[/ QUOTE ]

I know someone who has one and even she felt bad after buying it and it pretty much just sits in her draw now and she only uses it when travelling. It is made out of platinum and has jewels. For her though, although I don't know how much money she has, it's a drop in the bucket.

[The Stranger]

[ QUOTE ]
All insurance is -EV, including car, health, home, etc....

It is just a matter of how much of your own money are you willing to leave at risk.

[/ QUOTE ]

that and many states require you to carry liability insurance on your car.

[Voltron87]

Insurance may be -EV by definition, but it greatly reduces variance, which is a boon.

[OtisTheMarsupial]

NO, phone insurance is a waste of money, at least for me.

1. I drop my phone all the time but it still works. They're pretty durrable.

2. Every 6 months or so I want a new phone (I only buy one when I need a new one, but I always want the newest, coolest phone) so if I lost my current one, I'd rather shell out a few hundred for one I like than 50 for the one I don't really like anymore.

3. I've never lost my phone, had it stolen or dropped it down a port-a-pottie. In fact, I've never even broken one.

I just get a new phone whenever my contract is up.

phone insurance is -EV

[IsaacW]

[ QUOTE ]
phone insurance is -EV

[/ QUOTE ]
Indeed, my Nokia 6800 even survived a few minutes in a washing machine.

[jstnrgrs]

All insurance is always -EV. Otherwise, the insurance company wouldn't be able to stay in buisness.

[Ulysses]

It's a pretty good deal if you're an expert at leaving phones in cabs like I am.

[Shoe]

[ QUOTE ]
All insurance is always -EV. Otherwise, the insurance company wouldn't be able to stay in buisness.

[/ QUOTE ]

Your insurance money is also used to cover all the fraudulant claims they receive, and pay the all the expenses of the corporation.

[The Stranger]

[ QUOTE ]
[ QUOTE ]
All insurance is always -EV. Otherwise, the insurance company wouldn't be able to stay in buisness.

[/ QUOTE ]

Your insurance money is also used to cover all the fraudulant claims they receive, and pay the all the expenses of the corporation.

[/ QUOTE ]

My grandfather, who just retired from being a State Farm agent for about forty years, says that the actuary tables always have to come out even. The company makes money off the interest and investment returns of holding the customers' money before claims are made. This way the company gets tax breaks because they can file as a non-profit. My grandfather has been flat-out wrong on many things in his life, and this may be one of them, but I just wanted to put that out there.

[bogey]

[ QUOTE ]
You forgot

http://www.cellular.co.za/phones/motorola/2004/motorola-RAZR-2.jpg

The Razr is just SEX!

[/ QUOTE ]

That phone sucks. Have you ever seen it in person? It looks cool in the photo and tv, but when you see it in person you realize, yeh its kind of thin but overall its f'ing huge and not tiny at all. Brilliant marketing and nothing else there.

[JGalt]

[ QUOTE ]
[ QUOTE ]
You forgot

http://www.cellular.co.za/phones/motorola/2004/motorola-RAZR-2.jpg

The Razr is just SEX!

[/ QUOTE ]

That phone sucks. Have you ever seen it in person? It looks cool in the photo and tv, but when you see it in person you realize, yeh its kind of thin but overall its f'ing huge and not tiny at all. Brilliant marketing and nothing else there.

[/ QUOTE ]

Seriously? For what that phone has, it is small. Mine has the same features and is a monster and almost the same price.