Total Equipment Protections - What a Rip!

Question

I've been a loyal Verizon customer since 2010, and to this point, had little problem with this company.  However, I recently upgraded to a Droid Maxx after my Galaxy Nexus died last September.  I've had the phone for three weeks today, and purchased it for its positive reviews on durability.  I was on my way to the car this morning and slipped on a patch of ice.  My phone hit the pavement, and now the screen is cracked.  I purchased the "Total Equipment Protection" on the phone to protect against this kind of thing.  No problem (I thought) - I would call Verizon, and the phone would be replaced for a nominal fee (I'm thinking $50 at the most).  They put me through to Asurion to file a claim, only to find that it would cost me $150 to replace a phone I've had for 3 weeks!  Wow!
So I called Verizon back to hash it out with them, and they refuse to do anything - not even replace it with a refurbished phone at a lesser cost.  This is what I get for my $11/month "total protection".  So now I'm stuck with a cracked screen for two years (I don't have $150 lying around to throw at this).  The only other option I have is to see if another carrier will buy out my contract and give me a comparable phone.  Very disappointing!
Buyer beware - the "Total Protection Program" is not worth it! 

Answer 1

DDmiTV wrote:
Granted, I should have read the fine print, and that was my mistake.  Historically, the deductible for phone replacement has been $50.  I was unaware that Asurion upped the deductible in October.  Guess I need to do a better job of keeping up on those things. Possibly the deductible for basic phones has "historically" been $50, but the deductible for smartphones thru Assurion has "historically" been $150. It did not raise from $50 to $150 in October as people have been complaining on these forums for more than a couple of years about the $150 smartphone deductible.
But let's be honest.  You and I know that Verizon gets these phones for a price far below retail.  Possibly you have better inside information than I do, but I don't know what Verizon pays for their phones. I think the margins on them are not as high as you would think, otherwise other outlets such as Amazon who like to undercut other retailers would be selling full retail phones for much lower.
I did some pricing on EBay, and new or like-new Droid Maxx's are going for between $150-250 (and the higher prices are for 32GB unlocked phones).  Since they buy the phones in bulk from Motorola, I'm willing to bet their per-unit price is below the $150 they're charging for replacement.  Plus, according to Asurion's terms (and again, my fault for not reading the fine print), they have the discretion to replace the broken phone with a reconditioned phone, and even a different model from the unit originally purchased. GalaxyClass said it best - it's just not a good deal. I have never said Assurion insurance was a good deal, quite the contrary, and that is why I do not get it. Regardless, if you purchase the insurance, you pay their deductible and live with their policies.
Now, I realize that Verizon is in business to make a profit, but I think there needs to be some flexibility here.  Sometimes unforeseen stuff happens (after all, it's not like I threw the phone on the ground to test its durability - it was an accident).  Yes, the rules are the rules, but that doesn't mean exceptions can't be made for extenuating circumstances.  I've been a Verizon customer for 5 years and have never broken a phone, let alone a brand new phone.  Don't you think it would be to Verizon's advantage to work with a customer on a reasonable solution, keep the customer happy, and in turn, make THOUSANDS of dollars in the long run by retaining that customer in the long run?  No, then you would have people suddenly "breaking" their phone when they have decided they didn't necessarily like the phone they purchased. People have taken advantage of leniency such as this in the past and is the reason why Verizon is more strict in their upgrade/replacement/return policies than they used to be.
To me, it's a matter of weighing the options and leaning toward the more profitable option.  Then again, what do I know?