- Android Enthusiast
- 2,119 Posts
8 Conffesions of a Former Verizon Emp.
• Never get a 2-year contract. "The only benefit to a 2 yr contract is a $50 savings on your phone. Its not worth it. Take the $50 and get a 1 year then you can upgrade to a new phone every 10 months."
• Verizon reps get tons of money from new lines and certain accessories and text packages, take advantage of this. They won't let a new customer walk out the door. "Play hardball, they will do anything to get the new lines. VZW makes $ off the service, not the phones. Tell them you don't want to mail in the rebate. There does come a point of diminishing returns. For example, if you walked in and wanted a $39 plan and a free Treo 700, not gonna happen. But I have given away almost every non-PDA phone in the store for the right deal. Also tell them you will buy the accessories, and text package. Trust me here, these are 2 of the biggest metrics for the reps. Return the accessories the next day and call customer care to cancel your text package."
• Mention the lost or stolen program to get 25% off a new phone, even if you're under contract. Who's to say you didn't lose it?
• If you're on a rate plan of $59.99 or higher, you can get "a new phone (and new contract) for the discounted price after 12 months."
• Insurance is a rip-off. It costs too much and has a $50 deductible.
• Tell them you'll sign up for the Unlimited Data Plan with your Treo. "Speaking of Treos, often they offer an extra $100 off if you get the Unlimited data plan. Get it.. Save $100 and cancel it the next day if you don't want it. The leverage here is amazing also because that high end data package counts as a new activation in a roundabout way for the rep. None of the data packages are contractual. I use to tell the customers this just to save them $."
• Reps don't get as much money if you're still in a contract. If you upgrade on the phone with Verizon, the store reps won't be as motivated to help you.
• Ask for a loyalty credit on the phone before going to the store. "One way to work the system if you have New Every 2 and are out of contract is to call customer care, have them put you back into contract, but ask for a loyalty credit (up to $60 off your next months bill), then go into the retail store and use your New Every 2. The two credits can't be combined and that is the only way to get both. I've never seen this not work, although they could technically say that you already got a credit, but the system are not that informative and I have never seen that happen. Just make sure you know the contract rules for VZW in your state, and make sure you go to the store in time to cancel the new contract in case you cant use the NE2."
- 05-12-2011, 11:41 AM #2
- 05-12-2011, 12:00 PM #3
- 05-12-2011, 12:03 PM #4
- 05-12-2011, 12:08 PM #5
- 05-12-2011, 12:13 PM #6
- 05-12-2011, 12:24 PM #7
- 05-12-2011, 12:48 PM #8
- 05-12-2011, 06:14 PM #9
Insurance is not a rip off...
Let's use $8 a month for the insurance (24 months) + $100 deductible = $292
$550 (full retail) - $292 = $258 (could add $96 to $184 to this number because the $258 assumes you already paid the full 24 months for insurance)
$400 (retail after 1 year) - $292 = $108 (could add up to $96 to this number because the $258 assumes you already paid the full 24 months for insurance)
- 05-12-2011, 06:33 PM #10
Even if we had both lost our Droid X's and each lost a BlackBerry (that's a total of 4 phones), we'd still be ahead WITHOUT the insurance. So yeah, the insurance is a RIP OFF!
- 05-12-2011, 07:06 PM #11
- 05-12-2011, 07:36 PM #12
- 05-12-2011, 07:56 PM #13
First, cars and homes are generally financed and insurance is required by the lien holders. So unless you pay for your home/car in full you have to pay for insurance. Some homeowner's associations require HO insurance. Mine does.
Second, the home is not a disposable good (you don't generally buy a new one every 2 years). Neither is the car. The phone is a disposable good.
Third, let's do some math to see how much we've paid for insurance coverage:
Let's take $8/month on our $600 phone. At the end, we've paid $192 in premiums. That's 32% of the original cost. Two years later, you can get that $600 phone for less than $200 on eBay. The X has been out LESS than a year and I have seen them go for as low as $125. Sure it's used, but what are you getting from the insurance companies.
For my car, I paid $30,000. I pay $90/month for full coverage insurance (which is a little high). That's only $5400 in premiums at the 5 year mark (or 18% of the original value). If I total it, I get replacement cost minus deductible (approx $10,000). My $90/month covers more than just loss or damage to my car. It also covers injury/damage to other people and their vehicles and protects me from lawsuits if I'm involved in an accident where someone else is injured. I'm paying 11.25 times more for my auto insurance yet it covers a product worth 50 times more than my cell phone when both are new. PLUS the additional coverage that Auto insurance provides. I wouldn't carry full coverage on my 10 year old "beater".
For my home, I paid $250,000. My insurance is $400/year. If it were financed for 30 years, my total premiums would be $12,000 or roughly 4.8% of the originally paid price (awesome discounts from insurance company makes up for the auto rates). Unlike my cell phone, my home value has increased over the past 5 years.
Here, my monthly insurance is only about 4 times higher per month than cell insurance, but the protected product is 416 times more expensive when new (not counting the cost of the contents of my home that are also covered by my HO insurance. With $150K contents, that makes it 666 times more expensive). I won't go into the additional benefits of Homeowner's insurance vs. cell phone insurance.
Breakdown costs per month:
Cell Phone: 1.33% new replacement cost per month
Auto: 0.3% new replacement cost per month
Home: 0.013% new replacement cost (0.0083% including contents)
To put it another way, consider monthly auto insurance premiums of $400/month or HO premiums of $3250-$5200 (contents). (1.3% replacement cost)
All insurance is a GAMBLE. Home/Auto are required when financed, but still a bet between you and the insurance company. If you're financing a cell phone, maybe you need a cheaper model. If you consider the risk associated with each, then yeah, cell phone insurance is a bad bet. HOWEVER, if you lose/break your phone at least once per year, then sure, it's worth it. The cell insurance company is betting you are not able to take care of your phone, that's why the premiums are so high compared to the cost of the product you're covering.
- 05-12-2011, 07:57 PM #14
- 05-12-2011, 08:19 PM #15
And the certified like new doesn't cost me $8/month if the phone stops working. If you read the brochure from Asurion, you're not guaranteed a NEW replacement. Also, I would say that you're committing insurance fraud since in the coverage it clearly states that the insurance "does not apply to intentional acts". Bricking it flashing ROMs are an intentional act. It would also fall under the exclusion of "programming the covered property" voiding the insurance. It also does not cover "defects/damage from alteration or modification of any kind"
There's three reasons why your bricking the phone shouldn't be covered by insurance. It's equivalent to me setting my car/house on fire to get a new one.
Insurance fraud=higher premiums.
- 05-12-2011, 11:35 PM #16
- 05-13-2011, 07:49 AM #17
If I remember right, after that I had an Ericsson SH888 followed by a string of Nokias, HTCs, Motos, RIMs....up to my X. And by far, the X is the best so far!
- 05-13-2011, 08:34 AM #18
- 147 Posts
Any insurance is gonna be a rip off to you if you dont regularly break or lose your phone. Doesn't mean it is a complete rip off, cause there are people who do regularly break or lose there phone and i'm pretty sure they would rather pay the deductible than buying another phone at full retail, or trying to figure out how to get another phone to replace it.
- 05-13-2011, 08:45 AM #19
- 05-13-2011, 09:09 AM #20
- 05-14-2011, 09:01 AM #21
- 3 Posts
As far as I'm aware, they don't have to give you a "new" phone. It may be used.
If you work the numbers the way the carrier presents them to us, it *seems* like a fair deal. BUT...
I've never lost or broken a cell phone in more than 12 years. So, I am way ahead of them. Even if I drop this Droid X that I'm holding, in the toilet this afternoon.
SAVE YOUR MONEY!
- 05-14-2011, 01:18 PM #22
- 05-14-2011, 04:26 PM #23
- 1,247 Posts
All insurance is a ripoff, you're paying for the comfort of knowing you'll get a fix/replacement IF something happens.
I've been driving for 26 years, filed maybe 3 claims.
I've been paying home owners insurance for 10 years, and before that renters insurance for 8, never filed a claim.
If you don't file a claim you don't get your money back.
- 05-14-2011, 05:49 PM #24
- 29 Posts
if you have any type of insurance and you don't have a high deductible to keep costs down you are prepaying your claims. If you don't make any claims or are only keeping insurance because you have to get the highest deductible possible and hope that lightning doesn't hit your house or you don't hit a deer. it is all a crap shoot no matter which way you look at it. I will always put my money on me being able to avoid these problems.
- 05-16-2011, 09:29 AM #25