Are The Asurion 3-Year Warranties on Amazon Too Good To Be True?

[consultant1027]

I just ordered an S10 5G ($450 from Amazon Renewed with 90-day warranty). Interestingly, when you go to purchase they ask if you want an Asurion Protection Plan for $7.49 month which covers everything except theft/intentional damage and there's a $39/$59 charge depending on how you get it repaired (through them or reimbursed) and $129 for full device replacement. Interestingly, you can buy $450-$499 protection plan outright on Amazon for the same company for $57.99 for a 3-year plan. A lot cheaper than 36 X $7.49 = $269. And this is crazy, the details and Asurion confirmed in the questions section on Amazon this has no $39/$59/$129 deductible!! Can't believe it.


https://www.amazon.com/ASURION-Port...ag=hawk-future-20&ascsubtag=UUacUvbUpU6869431

 

[Rukbat]

Most phones don't go bad during the first 3 years, so it's found money for Asurion. If 2% do (and that's high), that's a $1,000 payout maximum (some of them can be repaired) for every $5,880 coming in.

 

[consultant1027]

Most phones don't go bad during the first 3 years, so it's found money for Asurion. If 2% do (and that's high), that's a $1,000 payout maximum (some of them can be repaired) for every $5,880 coming in.

I how always fully understood the economics behind it. But what is surprising is the variability in pricing. I've bought warranties for a $1500 lap top from Securranty (found them one day on a Google Search) because it was cheaper than buying the manufacturer's extended warranty. But even Secureanty warranty for a $450-$499 phone for 2-years they want $179. A far cry from $58 for 3-years. 90% of the time I always refuse the extended warranty when the store offers it. I did some research on the cost to replace the screen on the $1200 phone I just bought $450 refurbished and it's $279 (that probably includes the back glass also.) Also watched the YouTube video how to do it yourself with a cheaper kit. Not easy AT ALL. This seems like a rare case where the warranty is actually a pretty dang good deal!