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  1. Thread Author  Thread Author    #1  
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    Default Cost of Dropping Insurance vs. Getting a Spare Moto X

    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?
  2. #2  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    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!
  3. Thread Author  Thread Author    #3  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.


    Quote Originally Posted by B. Diddy View Post
    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?
  4. #4  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by Cozume View Post
    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.
  5. Thread Author  Thread Author    #5  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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?
  6. #6  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    If you've had it for more than 30 days, then it has to be a monthly plan of $8/month.
  7. Thread Author  Thread Author    #7  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.
  8. #8  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    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.
  9. #9  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    What if you break both?

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  10. Thread Author  Thread Author    #10  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.
  11. #11  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    But you'll have 2 phones, right? If one goes to the shop, use the other one.
  12. Thread Author  Thread Author    #12  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by ffejjj View Post
    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!
    ffejjj likes this.
  13. Thread Author  Thread Author    #13  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.
  14. #14  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    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.
  15. #15  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    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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  16. Thread Author  Thread Author    #16  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.


    Quote Originally Posted by B. Diddy View Post
    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.
  17. Thread Author  Thread Author    #17  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by ffejjj View Post
    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.
  18. #18  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Option 6 is no longer an option lol

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  19. #19  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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
  20. #20  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    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.
  21. #21  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by B. Diddy View Post
    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.
    Verizon asurion deductible is $99 for android . Up to $199 for iphone. Keep in mind other carriers can be different in terms of coverage and pricing, my friend on tmobile said they wanted $150 deductible for claims.

    I think it depends, I have 5 lines of service and have had service since the 90s,and not a single phone damaged. On the other hand I have used extended warranty several times.

    I only recently got insurance because of my daughter who likes to throw phones around.

    Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro
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  22. #22  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by dpham00 View Post
    Verizon asurion deductible is $99 for android . Up to $199 for iphone. Keep in mind other carriers can be different in terms of coverage and pricing, my friend on tmobile said they wanted $150 deductible for claims.

    I think it depends, I have 5 lines of service and have had service since the 90s,and not a single phone damaged. On the other hand I have used extended warranty several times.

    I only recently got insurance because of my daughter who likes to throw phones around.

    Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro
    I have had insurance since I have been on Verizon since 2011 and I replaced my RAZR M 2 times last year alone. I always though insurance was worthwhile. If you are out a phone asurion will replace. I didn't even pay those two times I replaced it!

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  23. Thread Author  Thread Author    #23  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by A895 View Post
    If you are out a phone asurion will replace. I didn't even pay those two times I replaced it!
    The problem I have with insuring my 32GB Dev Ed Moto X through Asurionh is that I will not get one as a replacement. I will get a 16GB non-Dev Ed as a replacement.
  24. #24  

    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by Cozume View Post
    The problem I have with insuring my 32GB Dev Ed Moto X through Asurionh is that I will not get one as a replacement. I will get a 16GB non-Dev Ed as a replacement.
    If you must have the de, then no point in getting insurance thru asurion.

    Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro
  25. Thread Author  Thread Author    #25  
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    Default Re: Cost of Dropping Insurance vs. Getting a Spare Moto X

    Quote Originally Posted by dpham00 View Post
    If you must have the de, then no point in getting insurance thru asurion.
    I could live without the Dev Ed, but the 32GB to 16GB downgrade is not fair at all.
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