05-13-2011 11:48 AM
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  1. born2ride41's Avatar
    yes you heard it right. i just recevied an anouncement from sprint saying that my TEP will be going up on July 24th. it is going up from 7 to 8 dollars. i know its only 1 dollar but it still kinda pisses me off....i wonder if this is a contract breaker???
    05-09-2011 03:43 PM
  2. Verdes8891's Avatar
    Since tep is optional, no it is not. But it may not be sprint doing that, since the insurance companoes bill the customers directly through the bills.

    Sent from my Inspiration
    05-09-2011 03:45 PM
  3. RkyMtnHigh's Avatar
    It will continue to climb because of the sheer numbers of people who break their phones. I use my homeowners insurance to cover mine. Renters insurance will cover it too most of the time, and it would be a brand new phone instead of a refurb. The insurance companies are making a killing with their supply of refurbs.
    05-09-2011 03:50 PM
  4. pretext's Avatar
    In my bill I got a couple days ago it said that they where changing companies that handle the insurance and Assurian would not be handling it anymore.
    05-10-2011 11:28 AM
  5. eze036's Avatar
    it was either increase it to 8 dollers or raise the deductible prices...ill rather pay 8 bucks then higher deductible
    92turbo2 likes this.
    05-10-2011 12:39 PM
  6. SmokeCrawler's Avatar
    it was either increase it to 8 dollers or raise the deductible prices...ill rather pay 8 bucks then higher deductible
    +1... I can handle $8.
    05-10-2011 01:20 PM
  7. tndank's Avatar
    S&R=$3, Insurance=$5
    05-10-2011 02:43 PM
  8. RkyMtnHigh's Avatar
    The problem lies with the idiots who have no regard for their phone and make 3 claims in a year...jacks the price up for everyone. You've seen the videos. That's why I use other insurance. The price is ridiculous. I'll insure your phone for $5.00 a month if you get 200,000 of your friends to sign up with you.
    05-10-2011 03:01 PM
  9. DirkBelig's Avatar
    I dunno, 3.3 cents a day more sure sounds like corporate greed.

    /sarcasm
    05-10-2011 03:38 PM
  10. RkyMtnHigh's Avatar
    I dunno, 3.3 cents a day more sure sounds like corporate greed.

    /sarcasm
    That would be 26.6 cents a day at $8.00... When you multiply that by 200,000 (average number of insured phones in a good model) that comes to $53,300.00 a DAY that the insurance company makes on that model alone before any claims. That 3.3 cents a day gave them an additional $7000.00 a day on that model alone. Considering it's not just the Bolt, but ALL insured phones going up, it is an assload of money. Figure they insure....meh...3 million phones, and multiply that by 3.3 cents....then you'll get it. Over 30 MILLION dollars more in a year. $2.5 million on the Bolt alone if they only insure 200,000 of them. I think the numbers are higher though...they probably insure 7 million or so phones.
    05-10-2011 04:03 PM
  11. born2ride41's Avatar
    I agree that it is a rediculous price and as how i have never used it i am considering dropping the TEP. My luck though i would completely destroy it a couple days later or it woukd get lost or stolen lol
    05-10-2011 04:48 PM
  12. dan330's Avatar
    $1 more a month... and it is an elective service...

    and some might cancel because of it??? wow.... perspective people!
    05-10-2011 05:52 PM
  13. TWC_SouthPhilly's Avatar
    $1 more a month... and it is an elective service...

    and some might cancel because of it??? wow.... perspective people!
    Enough Said

    Sent From My Pocket Rocket!!!!!
    05-10-2011 05:59 PM
  14. zmann's Avatar
    I don't care about the buck. Maybe if 1 dollar more is out of your budget range you should not have such a exspensive device in the first place. 96 dollars a year is still pretty darn good for me to protect a 500 dollar device.

    EVO-LUTION 3D
    05-10-2011 06:43 PM
  15. MikeBinOK's Avatar
    I'm lucky enough to still have annual subsidized new phones, so I just keep my old phone around to be able to reactivate and use it for a few months if I break my new phone. This plan might not work so well if I broke my new phone after owning it for two weeks, but since I've only broken one phone in eleven years of ownership, I think it is worth the risk.
    05-10-2011 06:59 PM
  16. RkyMtnHigh's Avatar
    I don't care about the buck. Maybe if 1 dollar more is out of your budget range you should not have such a exspensive device in the first place. 96 dollars a year is still pretty darn good for me to protect a 500 dollar device.

    EVO-LUTION 3D
    Actually, that's a HORRIBLE ratio...about 20% of the purchase price on an item that depreciates 30-40% in the first year. And to top it off, they send you a used one that is only worth $300.00 to replace the one you broke. That means that 96.00 a year is now 33% of the purchase price. Be careful for 3 years and you could buy one used if it broke, and you can also draw the interest on that $300.00 saved if you throw it into a high yield CD.

    I don't have insurance on mine, but that's just me and the other 30% of people who don't buy the TEP. You say if a dollar is out of my budget range, then I shouldn't have such an expensive device, but I follow another logic chain. I will replace it using my own cash if I break it as I can't see paying someone else for the phone a second time in 3 years if I don't break it, and $300.00 (price to buy a used one after a year, just wait) isn't a lot of money. I spend more than that throwing a BBQ for family and friends. However, if you look at it realistically, your insurance rates just jumped 13% for no reason...What would you do if your car insurance jumped 13% overnight? Or the interest rate on a loan jumped 13%? If you have 4 phones in your house like I do, (We've never broke one either) that's almost $400.00 a year for insurance....for $1200.00 worth of phones...Or, more than liability insurance would be on a $2000.00 car if you have a good driving record and are over 23 years old.

    I just like throwing out numbers and doing math...Don't take it personal. If you like your insurance, that's all that matters. I just like to look at it in comparison to other items and a 13% jump is outrageous for a company that is already making a killing insuring your phone. Cheers!
    05-10-2011 07:37 PM
  17. McPlot's Avatar
    Insurion raised the price, not Sprint. I ntook Best Buy protection for $10. They do not cover lost of stolen, but they have $0 deductible. So no cost to me if it breaks.
    05-10-2011 11:14 PM
  18. tube517's Avatar
    I'm going to look at Ensquared next time. Lower deductible and lower overall cost.
    05-11-2011 10:05 AM
  19. Mikey47's Avatar
    That would be 26.6 cents a day at $8.00... When you multiply that by 200,000 (average number of insured phones in a good model) that comes to $53,300.00 a DAY that the insurance company makes on that model alone before any claims. That 3.3 cents a day gave them an additional $7000.00 a day on that model alone. Considering it's not just the Bolt, but ALL insured phones going up, it is an assload of money. Figure they insure....meh...3 million phones, and multiply that by 3.3 cents....then you'll get it. Over 30 MILLION dollars more in a year. $2.5 million on the Bolt alone if they only insure 200,000 of them. I think the numbers are higher though...they probably insure 7 million or so phones.
    RockyMountain -- sounds like a great business opportunity for you!! If they can really make that much money taking on so little risk, perhaps you can go to Sprint and bid on providing this service for the current $7/month price tag and they would probably jump at the chance.

    Do the same number crunching with your auto insurance, homeowners insurance, etc and you get the same results. Sure they make lots of money, but they also have lots of costs and risks they have to carry. Just think how much money Assurion **LOST** on replacing Sprint Pres -- it had to be a complete loss for them in terms of money coming in vs. Pres going out.

    Insurance boils down to one simple question: Do you feel lucky? If you do, skip insurance and that is an extra $100 a year in your pocket, if you like to be risk adverse pay it and never look back.
    05-11-2011 10:15 AM
  20. RkyMtnHigh's Avatar
    RockyMountain -- sounds like a great business opportunity for you!! If they can really make that much money taking on so little risk, perhaps you can go to Sprint and bid on providing this service for the current $7/month price tag and they would probably jump at the chance.

    Do the same number crunching with your auto insurance, homeowners insurance, etc and you get the same results. Sure they make lots of money, but they also have lots of costs and risks they have to carry. Just think how much money Assurion **LOST** on replacing Sprint Pres -- it had to be a complete loss for them in terms of money coming in vs. Pres going out.

    Insurance boils down to one simple question: Do you feel lucky? If you do, skip insurance and that is an extra $100 a year in your pocket, if you like to be risk adverse pay it and never look back.
    Other insurance rates aren't even close to that. My truck was $52k and my insurance is $48.00 a month. (That's the closest to the phone and is way off) I pay 1/1083rd of the purchase price each month.

    My Homeowners insurance with flood rider runs $63.00 a month, and insures a $260k house with $250k in replacement value for the property inside. Doing the math, I pay 1/8095th of the purchase price every month for the house.

    Personal Liability Insurance is a rider on my house and runs $6.00 a year. It covers money-seeking individuals who claim they tripped on my property and require thousands of dollars in medical care, or if something happens to my kids friends as they are doing God-knows-what. Way too high of a number to even play with when you look at what could happen...It would also replace your phone if my kid threw it in the pool. For $6.00 a YEAR!

    $8.00 a month for a $500.00 phone? That is 1/62 of the cost of the phone...Every month.

    I wouldn't have insurance other than liability if my rates were similar to that of the phone.

    As I said in an earlier post; if I could find an investment group that could float me the money, I WOULD insure your phone if I could get 200,000 others to jump on in there. It sounds like you believe the insurance companies when they talk about how little money they make. If the insurance company believes it might come close to breaking even instead of making money or THINKS it might lose money, they can dissolve the policy, file some paperwork and quit paying out. They also get to keep the money they collected. It's like filing bankruptcy for an insurance company. The Pre didn't come close to hurting Asurion...They insure way more phones than just the Pre. HTC, Sanyo, Motorola, Kyocera, etc. Samrtphones, dumbphones, media phones are all the same price now. There are still more dumbphones out there than smartphones...the insurance companies are trying to make all the money they can as smartphones become mainstream...I bet they figured at 8 bucks a phone, they could insure nothing BUT smartphones and are making all the bank they can while the transition is underway. Look at how many claims have been filed here versus the number of people with no problems...I'd say the numbers are skewed higher here as this is a techie/geeky group here.

    The other part nobody talks about here is the Insurable Risk Scale that ALL insurance companies use. Claim a phone every year, and watch your auto, renters, homeowners insurance go up at renewal. They will deem you higher risk if they check the claims filed. They WILL check that datapool if you file a car accident claim. If they see you claiming phones all the time, you will be assigned a higher risk score, and pay higher rates. Insurance companies don't give you anything for free. The people filing claims for smartphones all the time just jacked YOUR rate up 13%. You don't see it though, and that's sad.
    05-11-2011 11:49 AM
  21. NxTech3's Avatar
    i see that other people making bogus insurance claims are making me pay more, and i also see that my taxes pay welfare when im not getting anything for it. its life, you dont like the increase, remove TEP. Im pretty sure if you got your bill and you didnt even look at the break down totals you wouldnt even notice the extra dollar, hell taxes and surcharges could fluctuate a dollar every month. Its not a big deal in my opinion. I recommend TEP!!!!!!!!
    05-11-2011 04:33 PM
  22. FreudSlipped's Avatar
    i see that other people making bogus insurance claims are making me pay more, and i also see that my taxes pay welfare when im not getting anything for it. its life, you dont like the increase, remove TEP. Im pretty sure if you got your bill and you didnt even look at the break down totals you wouldnt even notice the extra dollar, hell taxes and surcharges could fluctuate a dollar every month. Its not a big deal in my opinion. I recommend TEP!!!!!!!!

    Well, as you posted in an earlier post "Im in Sprints employ so ill keep it and sell more TEP!!! ", you obviously have an incentive to "sell more TEP." You really should add the employee disclaimer when you're spending other people's money.
    05-11-2011 06:29 PM
  23. RkyMtnHigh's Avatar
    i see that other people making bogus insurance claims are making me pay more, and i also see that my taxes pay welfare when im not getting anything for it. its life, you dont like the increase, remove TEP. Im pretty sure if you got your bill and you didnt even look at the break down totals you wouldnt even notice the extra dollar, hell taxes and surcharges could fluctuate a dollar every month. Its not a big deal in my opinion. I recommend TEP!!!!!!!!
    Nope...I don't have TEP. I pay attention to where my money is going, why it's going, and adjust constantly to keep as much as I can so I can buy other things that I want. I can't see paying someone else enough to buy another phone in 3 years. If I happen to break mine, I'll buy another one, and probably a different case too. Enjoy your TEP. As I said in another post, if that's what you want, there's nothing wrong with it. I was merely pointing out that other insurance rates are nowhere CLOSE to what people are paying for their phone insurance. I see you had no rebuttal to that. Your welfare comparison has no merit in your argument either since everyone pays taxes, but TEP is a choice. Are you implying you'd make TEP mandatory if you were a member of Congress?

    Thanks for pointing out he's also a Sprint Employee, Freud Slipped...
    05-12-2011 02:48 AM
  24. Mikey47's Avatar
    ...The Pre didn't come close to hurting Asurion...They insure way more phones than just the Pre. .....
    You missed my point. Earlier your examples were on specific models and that is what I was addressing. You're right, the Pre didn't hurt Assurion overall, but if you looked at just the Pre in microcosm I bet it did -- they most likely paid out more than they took in. Of course they made up for this on other models where they took in way more than they paid out.


    The other part nobody talks about here is the Insurable Risk Scale that ALL insurance companies use. Claim a phone every year, and watch your auto, renters, homeowners insurance go up at renewal. They will deem you higher risk if they check the claims filed. They WILL check that datapool if you file a car accident claim. If they see you claiming phones all the time, you will be assigned a higher risk score, and pay higher rates. Insurance companies don't give you anything for free. The people filing claims for smartphones all the time just jacked YOUR rate up 13%. You don't see it though, and that's sad.
    So, are your really saying that Assurion is sharing their data of your claims with other insurance companies? So if I claim a phone loss my auto insurance rates are going to go up? I find this hard to believe....

    Nope...I don't have TEP.
    If you don't have it, what does it matter to you if it goes up to $16 a month?
    05-12-2011 07:54 AM
  25. FreudSlipped's Avatar
    Disclaimer: I am paying TEP on three phones. I will be dropping it for all three phones in July.

    Insurance companies rarely get into financial trouble because of losses on the insurance side. It's usually the investment side of the company that can jam them up. They calculate the loss ratio based on past market trends and then add on their margin for profit. Top it off with anticipated expenses, including the fees paid to the carriers and commission paid to sales reps. The Law of Large Numbers is the Theorem that Insurance writers rely on:


    Insurance: The Concise Encyclopedia of Economics | Library of Economics and Liberty

    "Insurance works through the magic of the law of large numbers. This law assures that when a large number of people face a low-probability event, the proportion experiencing the event will be close to the expected proportion. For instance, with a pool of 100,000 people who each face a 1 percent risk, the law of large numbers says that 1,100 people or more will have losses only one time in one thousand."

    The following article explains why TEP isn't as great a deal as many think it is:

    Is Asurion Cell Phone Insurance Worth It? - BusinessWeek
    05-12-2011 09:46 AM
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