Week 4: When an (Insured) iPhone is stolen

Good news!

I guess this will be my last post in this series of posts. This week things moved quickly. First we got a real tracking number, than after 48 hours a box with the new phone arrived.

Woo hoo!

Opening the box revealed that the device sent to us was from the wrong color but… it included twice as much storage than the original iPhone 6. After some discussion at the house we decided to accept the new device.

There was also a moment of concern as after maybe 24 hours of use suddenly the new device was blocked. Calling AT&T revealed that the phone number was locked as it was reported as stolen and there was another process required to re-activate the device. That process took about additional 45 minutes on the phone. But really no reason to complain. Overall we got a new iPhone and we are up and running.

Next, i went back to the AT&T site and canceled all the insurance i used to have on all family devices.

The reason is that i am simply not happy with the cost, service and process. Overall it took a full four weeks to get phone replacement and the deductible was over $330.

In my opinion the alternative of simply buying a new device in full price and no contract is simply better.

Here is why: Let’s assume a phone get stolen or damaged once every three years. This is in addition to the regular cadence of replacing phones for newer models that happens anyway once every two years.

That means that i would pay $10 per month (and not $7 as i always thought, just another nugget i realized in the process). Bringing the total insurance payment to $360. Then you have to add to this the deductible that is over $330. The total is basically more than a new device fully payed with no contract. My reality is that this is the first stolen device ever for me over many year and multiple devices.

The other aspect is how fast can you replace the device once it happens. If there is no insurance the new device is virtually available the same day. You walk to an apple store and buy a new device. With the insurance alternative it took 4 weeks.

This is a simple decision table:

Full Price New Device Insurance claim
Cost $650 $700
Time Same day Four weeks
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Author: dave

Consider myself kid in soul and naive by choice. I am interested in people, technology and business and thrive when they all work together. My favorite quote and motto is that “You can fool some people some times but you cant fool all the people all the time” ― Bob Marley

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