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???
TEP price with Sprint going up on July 24th
- Thread starter born2ride41
- Start date
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
Sent from my Inspiration
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.
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.
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.
DirkBelig
Well-known member
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.
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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
$1 more a month... and it is an elective service...
and some might cancel because of it??? wow.... perspective people!
and some might cancel because of it??? wow.... perspective people!
TWC_SouthPhilly
Well-known member
zmann
Well-known member
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
EVO-LUTION 3D
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.
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!
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.
tube517
Well-known member
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.
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