Cost of Dropping Insurance vs. Getting a Spare Moto X

[Cozume]

Currently I have a 32GB Dev Ed Moto X that I got during the Cyber Monday sale and pay $5.18 + 6% sales tax for insurance on it. Because I have to pay a $99 deductible and will receive back a 16GB non-Dev Ed black plastic Moto X if I need to use the insurance, I am considering dropping the insurance and getting a 32GB wood backed Moto X as my daily driver during the upcoming sale and keeping my Dev Ed as a back up.

My plan is to sell both my Moto X's when the Moto X2 is released. My assumptions are that the Moto X2 will be released in August of this year and I would be able to net $150 by selling a 32GB Moto X and $100 for a 16GB Moto X at that time.


I worked out all of the math given the phone prices, insurance cost, sales tax, net resale values, Google Play credits, Motorola Trade Up $100 prepaid VISA and using the above assumptions, the net costs for the following scenarios would be:

1) $240 if I did not buy a second Moto X during the sale, kept the insurance and never needed to use it;

2) $389 if I did not buy a second Moto X during the sale, kept the insurance but needed to use it; and

3) $340 if I bought a 32GB wood backed Moto X during the sale, drop the insurance and both the wood backed and Dev Ed Moto X's were in good condition to resell when the Moto X2 came out.


So my question is - given the above costs using my assumptions what would you do? I have never lost or broken a phone nor have I ever had one stolen so it is likely I would be fine in the next 7 months without insurance or a back up. However, I always carry insurance for piece of mind so given my risk adversion, I either need to carry insurance or buy a second phone so I have a back up. And I really would like to have a wood backed phone.


To summarize the additional costs of Scenarios 2 and 3 above (i.e., in addition to the cost of Scenario 1 above) are as follows:

Scenario 2: $149

Scenario 3: $100

Of course I am neglecting a 4th scenario - I break the wood backed Moto X and it can't be resold! Then the total additional cost would be close to $300 but then at least I would have my 32GB Dev Ed as my back up phone and not a 16GB one.


It seems like an additional $100 for piece of mind AND a wood backed phone isn't bad. At least that is how I am looking at this. What do you think?

 

[B. Diddy]

Too ... much ... math!

I'd have to sit and read through that at least 10 more times before I could even comment on it directly. What I'd suggest right now off the bat is to consider a 3rd party insurance like SquareTrade. It's $125 for any smartphone for a 2 year policy, which ends up being about $5/month. The main advantage over Asurion is that there is no deductible. Check it out here: Cell Phone Insurance - Cell Phone Warranty - Cellphone Insurance

Edit: How embarrassing--there is in fact a $75 deductible. Still a pretty good deal at about $5/month. But sorry for the misinformation!

 

[Cozume]

Too ... much ... math!

Sorry! Here is all you really need to know:

Scenario 2 additional cost = $149;
I keep the insurance, need to use it and receive a 16GB black plastic Moto X to use;

Scenario 3 additional cost = $100
I buy a 32GB wood backed Moto X during the sale, drop the insurance and both the wood backed and Dev Ed Moto X's are in good condition to resell when the Moto X2 comes out;

Scenario 4 additional cost = $288
I buy a 32GB wood backed Moto X during the sale, drop the insurance, damage the wood backed Moto X to the point it can't be resold but I have the 32GB Dev Ed Moto X to use and resell.

I am financially better off with Scenario 3 AND never have to settle for a 16GB phone. With scenario 2, not only am I worse off financially, I have to settle for a 16GB phone. Scenario 4 I am financially worse off, but at least I don't have to settle for a 16GB phone.

What I'd suggest right now off the bat is to consider a 3rd party insurance like SquareTrade. It's $125 for any smartphone for a 2 year policy, which ends up being about $5/month. The main advantage over Asurion is that there is no deductible. Check it out here: Cell Phone Insurance - Cell Phone Warranty - Cellphone Insurance

But would they give me a 32GB Dev Ed Moto X as a replacement? Asurion won't. Also, my Dev Ed was purchased on cyber monday. Is that an issue for Square Trade?

 

[B. Diddy]

But would they give me a 32GB Dev Ed Moto X as a replacement? Asurion won't. Also, my Dev Ed was purchased on cyber monday. Is that an issue for Square Trade?

Not sure if there are any catches in the fine print, but this is what they say on the site: "If your phone breaks we'll ship it to our repair depot for free. If we can't fix your phone, we'll pay you to the full cost to replace the phone."

So it sounds like they don't provide you with the replacement phone--you purchase the phone, and then they reimburse you. Good question about whether they'll only reimburse the original cost of the phone, or if they'll cover the difference if the price went up after a sale.

 

[Cozume]

Good question about whether they'll only reimburse the original cost of the phone, or if they'll cover the difference if the price went up after a sale.

I think from what you posted you get replacement cost. But what I meant is do you have to buy coverage within 30 days of purchasing the phone?

 

[B. Diddy]

If you've had it for more than 30 days, then it has to be a monthly plan of $8/month.

 

[Cozume]

If you've had it for more than 30 days, then it has to be a monthly plan of $8/month.

good to know for the future.

What about my scenarios? I think I am going to pull the trigger on the wood backed one on monday but since it won't be in a case, I am a bit worried about dropping it.

 

[B. Diddy]

I guess I'd go for scenario 3, assuming you're not too tight on funds. I think insurance is always a good idea for these devices, considering how ridiculously expensive they can be retail--at least for the first 2 years. 32 GB is, of course, more future-proof than 16 GB. If you're as careful as you sound with your phones, scenario 4 seems unlikely, but you can never tell.

 

[ffejjj]

What if you break both?

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[Cozume]

I guess I'd go for scenario 3, assuming you're not too tight on funds.

I can afford it. I just have never been without insurance before. I like the piece of mind it gives me. I wouldn't have even considered dropping insurance if they would give me a 32GB dev ed if I need to make a claim. The only downside to the Square Trade policy is you have to do without a phone while your phone is being repaired. And since I am over 30 days now, it would be more expensive.

 

[B. Diddy]

But you'll have 2 phones, right? If one goes to the shop, use the other one.

 

[Cozume]

What if you break both?

lol! the dreaded scenario 5!

Scenario 5 additional cost = $400.

I would go back to my GNex until the Moto X2 were released if I broke 2 Moto X's!

 

[Cozume]

But you'll have 2 phones, right? If one goes to the shop, use the other one.

If I get 2 phones, I am not going to pay for insurance. The money I would save by going without insurance is what justifies buying the 2nd phone.

I do have a GNex as a backup but the bluetooth has issues. I guess I could put a KitKat ROM on it if I had to use it.

 

[B. Diddy]

Ok, now your scenarios are starting to coalesce in my thick head. I guess having the 2 phones without insurance would be a reasonable approach. If one of them got damaged beyond recovery, you could probably still sell it for parts for some decent amount.

 

[ffejjj]

Buy the second phone, add it to your home owners insurance for dirt cheap and you'll have the phone you want and insurance at almost no additional cost. That's option 6

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[Cozume]

I guess having the 2 phones without insurance would be a reasonable approach.

and it would only cost me an extra $100 compared to having insurance if I don't break either, which doesn't seem like too much for getting to have a wood backed Moto X.

If one of them got damaged beyond recovery, you could probably still sell it for parts for some decent amount.

thanks, guess I should check ebay to see what I could get for a non working Moto X.

 

[Cozume]

Buy the second phone, add it to your home owners insurance for dirt cheap and you'll have the phone you want and insurance at almost no additional cost. That's option 6

yeah, but I have like a $1000 deductible on my homeowner's policy.

 

[ffejjj]

Option 6 is no longer an option lol

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[dpham00]

Too ... much ... math!

I'd have to sit and read through that at least 10 more times before I could even comment on it directly. What I'd suggest right now off the bat is to consider a 3rd party insurance like SquareTrade. It's $125 for any smartphone for a 2 year policy, which ends up being about $5/month. The main advantage over Asurion is that there is no deductible. Check it out here: Cell Phone Insurance - Cell Phone Warranty - Cellphone Insurance

Be sure to read the coverage thoroughly. Square trade didn't cover loss or theft and only covers the device serial registered or its replacement. They also only provide coverage up to the full price of the device.

With asurion for example, if I had a note 3 with a broken screen , it would be covered. If 6 months later, I bought a friend's s5 just to try it out for a few days, it would be covered.

In the 2 years term, asurion can replace the device up to 4 times.

Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro

 

[B. Diddy]

Yes, you're right. And I'm sorry, I'm afraid I misspoke before--there is in fact a $75 deductible for SquareTrade. Which I think is still a little less than Asurion for smartphones, but not inconsequential. But about $5/month is still worthwhile for me.