Phone insurance rip off!!

[dawny1970]

I rang fonesafe today to make a claim and was told that a replacement phone will not be provided on the grounds that " there was not sufficient measures taken to prevent the accident"

 

phone them back up, get the persons full name you speak to, ask for this in writing and then after you have checked your phone insurance small print to ensure you are covered, tell them that you are now going to refer the case as a complaint to the insurance ombudsman, as that's the point of accidental damage phone insurance, it covers you for the unforeseen accident, thats the whole point of insurance

[Location114]

Oh someone took plenty of apples to school with them give yourself a pat on the back

 

However no they do not contradict each other because they were just 2 points i made as a general theory.

 

Meaning 1 if all insurance companies honoured every claim it would be very hard to make ends meet even if only 6-10% of people do claim take an example

 

iphone insurance from my bank if i lose my phone £75 excess then they pay around £500 for a new phone loss of £425 on 1 customer these companies have millions of customers so chances are if you worked out if they warranted every claim who would come out on top it would not be the insurers.

 

What annoys me is people dont seem to care that these company owners still has kids and mouths to feed so no in my opinion they should not warrant every claim.

 

Dont those two statements contradict each other..

[Leah-Lacie]

 

iphone insurance from my bank if i lose my phone £75 excess then they pay around £500 for a new phone loss of £425 on 1 customer these companies have millions of customers so chances are if you worked out if they warranted every claim who would come out on top it would not be the insurers.

 

My phone, for example, £250 when new, probably worth about £100 now

I've paid them £6.99 per month for 16 months, which is roughly £112

If I carried on for the duration of my contract, I would be paying them £6.99 per month for another 8 months, so I would have easily paid for my phone in monthly insurance payments, which a lot of people don't claim on.

I've given them an insurance excess of £25 for a manufacturer fault, which they just repaired, with, I believe, a bit of solder on the inside.

Now I come to needing a replacement as mine is completely knackered, it will be another £50 excess, I'd rather use my old phone for a few months and wait for an upgrade. If I had saved their £6.99 per month I could have bought myself a new phone

[Cyclone]

Oh someone took plenty of apples to school with them give yourself a pat on the back

 

However no they do not contradict each other because they were just 2 points i made as a general theory.

 

Meaning 1 if all insurance companies honoured every claim it would be very hard to make ends meet even if only 6-10% of people do claim take an example

 

iphone insurance from my bank if i lose my phone £75 excess then they pay around £500 for a new phone loss of £425 on 1 customer these companies have millions of customers so chances are if you worked out if they warranted every claim who would come out on top it would not be the insurers.

 

What annoys me is people dont seem to care that these company owners still has kids and mouths to feed so no in my opinion they should not warrant every claim.

 

You missed out some key bits here. Ie how much do you pay for the insurance (or how much does someone pay, it's not free).

 

£425 (this is the market rate of course, not what they pay).

Pay out on all claims and 10% of customers claim.

 

Means that a premium of £60 a year (for example) will make them a profit. That's £5/month, which I think is what the OP said they were paying.

 

That's 100% of customers paying £60 (lets pretend it's just 10 customers).

£600 paid.

10% claim (one customer) and all claims are honoured. Costs £425 (although in reality it costs less).

£175 profit (although they have some staff to pay, etc...)

 

You don't have to worry about the poor owners, they aren't going to starve through lack of sharp business practice (ie refusing to honour genuine claims).

[Cyclone]

My phone, for example, £250 when new, probably worth about £100 now

I've paid them £6.99 per month for 16 months, which is roughly £112

If I carried on for the duration of my contract, I would be paying them £6.99 per month for another 8 months, so I would have easily paid for my phone in monthly insurance payments, which a lot of people don't claim on.

I've given them an insurance excess of £25 for a manufacturer fault, which they just repaired, with, I believe, a bit of solder on the inside.

Now I come to needing a replacement as mine is completely knackered, it will be another £50 excess, I'd rather use my old phone for a few months and wait for an upgrade. If I had saved their £6.99 per month I could have bought myself a new phone

 

I hope you learn from your lesson and don't take out expensive insurance again!

[Location114]

fair enough you have a point that in your personal circumstances it hasnt been overly cost effective for you but this is just your personal situation not every policy holder.

 

 

My phone, for example, £250 when new, probably worth about £100 now

I've paid them £6.99 per month for 16 months, which is roughly £112

If I carried on for the duration of my contract, I would be paying them £6.99 per month for another 8 months, so I would have easily paid for my phone in monthly insurance payments, which a lot of people don't claim on.

I've given them an insurance excess of £25 for a manufacturer fault, which they just repaired, with, I believe, a bit of solder on the inside.

Now I come to needing a replacement as mine is completely knackered, it will be another £50 excess, I'd rather use my old phone for a few months and wait for an upgrade. If I had saved their £6.99 per month I could have bought myself a new phone

[Location114]

I dont pay insurance purely on the basis my phone isnt worth a great deal £50 at the most.

 

And do you work for a insurance company cyclone? no? so you dont know what they pay.

 

And im sorry cyclone but im not as stone hearted as some people (ie u) i never look at a business and think its ok to misuse a service due to common sense purely on the basis its a big company and they wont starve to me i always consider that its someone's life on the line because whichever way you look at it every one in the world is just trying to feed there family and put a roof over there head.

 

 

 

You missed out some key bits here. Ie how much do you pay for the insurance (or how much does someone pay, it's not free).

 

£425 (this is the market rate of course, not what they pay).

Pay out on all claims and 10% of customers claim.

 

Means that a premium of £60 a year (for example) will make them a profit. That's £5/month, which I think is what the OP said they were paying.

 

That's 100% of customers paying £60 (lets pretend it's just 10 customers).

£600 paid.

10% claim (one customer) and all claims are honoured. Costs £425 (although in reality it costs less).

£175 profit (although they have some staff to pay, etc...)

 

You don't have to worry about the poor owners, they aren't going to starve through lack of sharp business practice (ie refusing to honour genuine claims).

[Cyclone]

I dont pay insurance purely on the basis my phone isnt worth a great deal £50 at the most.

 

And do you work for a insurance company cyclone? no? so you dont know what they pay.

What do you mean? I don't know what they pay staff, what they pay for a phone, what they pay for office coffee?

 

And im sorry cyclone but im not as stone hearted as some people (ie u) i never look at a business and think its ok to misuse a service due to common sense purely on the basis its a big company and they wont starve to me i always consider that its someone's life on the line because whichever way you look at it every one in the world is just trying to feed there family and put a roof over there head.

We're not talking about misusing a service, we're talking about insurance companies refusing to pay valid claims.

[Location114]

Being as the only point you raised was relating to what they pay for a phone id say thats a safe bet.

 

The point you havent grasped is if it is valid fair enough but you will see in 99% of clauses the insurer expects you to take reasonable care to prevent damage and taking a phone in the kitchen is hardly doing that.

 

 

Anyway its clear that we will never agree on this matter so we shall leave it there now.

 

 

What do you mean? I don't know what they pay staff, what they pay for a phone, what they pay for office coffee?

We're not talking about misusing a service, we're talking about insurance companies refusing to pay valid claims.

[Cyclone]

I certainly disagree with you on what "reasonable" means. You're suggesting that a phone is so delicate that you can never take it into several rooms of your house. A ridiculous idea since phones generally go in a pocket and go wherever you go.

In Sheffield it's quite common to enter and leave the house via the kitchen, what do you suggest people do with their phone to avoid taking into that area of extreme danger in that case?

 

Reasonably care is not juggling with your phone, not using it whilst riding a motorbike and not throwing it to your friend across a river. Not taking it into your kitchen is completely unreasonable.

 

Re: the price, I used the figure that you provided earlier, I noted that they will obviously get it cheaper than that, for a start they won't be paying VAT on it.