Travel Technology - Are Smartphone equipment protection add-ons a good buy?

I saw this asked on another website. With high cost of Smartphones are equipment protection packages add-ons to your monthly cell phone bill a wise choice?

The major wireless phone companies offer extended warranties and 'equipment replacement' programs that cover any breakage, failure or loss, even if it’s your fault. You drop your phone, it breaks into pieces and you're covered.

With no coverage, if over the course of a two-year contract, your smartphone breaks or you lose it or something happens, you can buy a new one. But you won't be doing so at the subsidized price, it will presumably be at the full price, or close to it. It will also be costly if something breaks, without one of these plans you pay full price for repairs. Considering the two year contract period, you could get in an odd situation, your friendly wireless carrier is not going to let you out of a contract because your phone broke or you lost it.

Are the protection packages, usually in the $5 to $7 per month range, a wise buy? Or is the replacement/repair cost a risk you have to take if you want play this game and own one of these devices?

Most of these plans have so many restrictions that the chance of getting a new phone is next to nothing.

Plus, in most cases their replacement will be a refurbished device.

Also, don't let them make you think that your phone is THAT expensive, the retail price may be, but it's often easier to just pay the $200 ETF and get a new phone, or to find the same one on Ebay.

Also, don't let them make you think that your phone is THAT expensive, the retail price may be, but it's often easier to just pay the $200 ETF and ...

I was kind of of thinking that might be the case. You have 12 mos left on a contract, repair or replacement is $150+/-, and ETF is $200.

Are there any statistics on what percentage of people go through a two-year contract without ever breaking, destroying or losing a phone?

Most of these plans have so many restrictions that the chance of getting a new phone is next to nothing.

Plus, in most cases their replacement will be a refurbished device.

Also, don't let them make you think that your phone is THAT expensive, the retail price may be, but it's often easier to just pay the $200 ETF and get a new phone, or to find the same one on Ebay.

It's a good deal if you have the latest and greatest. Those phones can cost $400 or more. In fact, it's such a good deal that you can't get insurance from ATT for your pda phone. I tried.

It's a good deal if you have the latest and greatest. Those phones can cost $400 or more. In fact, it's such a good deal that you can't get insurance from ATT for your pda phone. I tried.

ATT does now (http://boardingarea.com/blogs/traveltechtalk/2008/05/19/att-to-offer-a-499-phone-insurance-plan-for-all-their-phones/), but that doesn't necessarily make it a good deal.

I've always had it since my company paid for it. I did lose my phone in a cab in DC and had a replacement the next morning without having to do much of anything, so I was happy about that, but overall I've probably spent more on the insurance than I would have for that one replacement phone.

I have a Sprint Treo 700p, and paid $6/mo for the insurance. After a year, my vehicle was broken into and the phone was stolen. I called the insurance, they verified who I was, and checked what was available as a replacement. As it turned out, I got the same model, new in box. I paid the $25 or $50 or whatever fee and I was in business.

It doesn't always work. A couple years ago a friend with an older Treo dropped his device, and as a replacement they gave him a Blackberry. Yikes, talk about 'not the same thing'.

On phones worth more than $400. I get insurance.

I'm usually against this insurance for phones - I mean, they're not in it to lose money, are they, so I may as well self-insure.

I recently purchased an Sprint HTC Touch, having lost my previous Treo. When the sales guy offered me insurance, I said that I normally don't take it, but since I was buying a phone to replace one that I had just lost and the phone was $200 after a $100 rebate and $150 off from my contract credit, that I was going to get it.

Two weeks later, I lost the new phone, too.

If you have Treo's, you definately should. Ours have seemed to be fragile. The new 755P seems to hold up better than the old 650, which was subject to a class action law suit. We went through three 650's under warranty and ended up buying two 755's to keep a staff of four up and running. Now we have warrenties on everything. I then had an intermittant problem with the new Treo I bought and Sprint cheerfully replaced with it with a brand new out of the box phone.
PT