how dose cell fone insurance work??......u can get a new cell 3 tymes a year.......arent they losing money??

Answer 1

Unless you are extremely forgetful or accident prone it is about as big a waste of your money as flight insurance. Stick the money you would spend on it in a savings account or spend it on state lottery. At least then you will be giving it to educational funding in your state and have slightly better odds in seeing a financial gain.

Answer 2

It is actually quite the scam. They will charge you say $5 a month for it, meaning $60 a year in that, but they also tack on a service charge for when you lose your phone, and that is often $50. So in theory, in the case you dont lose you phone, you pay $60 no matter what, and if you do lose you phone you end up paying $110 for it (however that is slightly better than having to pay full price for a phone which can be up to $200). Either way, these phone companies get their cells very cheap at wholesale price. They cash in on your troubles big time.

Answer 3

I actually got a replacement phone through the insurance plan a few months ago. The payments were $4.99/month. The deductible was $50.00. The replacement phone was not new. It was 'refurbished' and was actually in worse shape than the one I broke. I canceled the insurance the next month. BTW there is a limit on how often they will replace the phone. I don't recall how often.

Answer 4

ya and on top of the 5 bucks a month and the 50 to replace the phone its only a refurbished phone and they wont copy any of your downloads over so ya its kinda a scam but I have had to use it before and still do have the insurance cause there is no way I could come up with the money for a new phone if I had to and my phone is my life (we hardly use our house phone might be getting rid of it)

Answer 5

most companies still make you pay a flat fee for new phones unless is it technological issues. And, they charge you a sum per month.