Captain Obvious here.....
yes what you say is true, BVBull. I have health insurance basically because one NEEDS health insurance to navigate the BS system we have in our country. For example, the "list price" of a simple vaccine might be $300 yet when it goes through insurance the hospital magically allows it to be reimbursed at a fixed rate of $19.61 or some ridiculous fraction. Without insurance my cost would be $300.
More importantly, healthcare is an area where most anybody could be bankrupted in very short order if they actually got sick. I own insurance on my car for the same reason....liability primarily but also because I'd prefer not to come out of pocket $30 grand if I total my car.
The risk and subsequent penalty for not having insurance when you need it is certainly higher with a vehicle and health, but the principles are still the same. It is a risk/reward assessment that you have to make for yourself. Factor in how much you value certain other "perks" or conveniences that come with various levels of insurance and you have your decision.
Worth mentioning, though. Those boogeymen that sell health and auto insurance do so to make money. *gasp* It is extremely likely that you will pay more in to insurance than insurance will pay out to you. I get that you don't want to pay $30k if you total your car. I wouldn't either. I don't want to pay $300 if I drop my phone. Maybe that one time lump sum is a risk you are willing to take. I'm not. Same logic applies to both the car and the phone. Just depends on how you personally value all aspects of the coverage provided.
(FYI, liability covers the other person's car, not yours)
I laugh, however, at the typical "Best Buy" insurance or extended warranties. You buy some $25 POS electronics and for "only $8.99" you can get an extended warranty. Great. Because you're basically saying that the thing you're selling me has such a chance of failing, after the return window expires but before the warranty does. And moreover, if for some reason it did fail, I am a rich enough man that replacing said item for $25 will not bankrupt me.
Doesn't matter if it will bankrupt you or not. $300-500 won't bankrupt me, I just don't feel like potentially having to pay it. Not that I am likely to buy a $9 service plan on a $25 item anytime soon.
I am still surprised that for only "a couple bucks" you have the right to a new phone for any reason at any time with no conditions and no deductibles. Does that include loss or theft? If so, seems quite ripe for fraud. [EDIT: I see your parenthetical "that has to do with the phone not functioning properly"......that makes more sense to me. The chance that the phone just doesn't work right, but not because you dropped it and cracked the screen, and not because it got water inside, is pretty small. They can probably happily take $35-40 bucks from you every year assuming that it is a small small chance the phone will just futz out on its own without any help from you (which would disqualify you from collecting).
Loss or theft is covered, but with a $100 deductible (I believe). Ripe for fraud? Doubtful. The "stolen" phone couldn't be activated again, so you'd be out the deductible + however much you pay in insurance to have a media device. I suppose some might think it is worth it, but obviously not enough for them to change the scope of coverage.
As for broken screens, I've had a screen replaced (free of charge) for a dropped phone and my wife has had her whole phone replaced for the same thing. Not sure what to tell you.
I think water damage is supposed to carry a deductible, but I've never had the problem. Rooted Evo 3D went haywire due to a bad flash (presumably). Watermark indicated it had been wet. Refurb sent to me free of charge.
Frankly, though, I'm not trying to convince you or anyone else to get it. Just providing some compelling reasons why I think it is worth it. Many of the counter arguments are irrational. The argument against it is this: If you think the chances and size of a one-time cost for a new phone are outweighed by the prospect of a monthly fee and/or the convenience factors of having coverage are of little value to you, don't get the insurance. Simple.
Guys...let's not get into a health insurance debate. Not that it's much of one now, but it can spiral quickly out of control.
It has nothing to do with debating about health insurance, just a rather relevant comparison.
Why do legitimate discussions on the Internet often devolve into insults? Sad, because it drives away intelligent posters.
There is a self-deprecating irony to that post. Not sure if it was intentional or not.
Besides, Captain is a pretty high rank, no?
At any rate, lighten up. The point is, ALL forms of insurance are a source of profit for the insurer. To single any one out as being "bad" because it generates profits is silly.
It is akin to saying, "Don't buy that TV, phone, car, magazine, and head of lettuce. They are just selling them to make money."
Bonkers.
