Extra Protection

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  • Idea
  • Updated 5 years ago
Every other provider gives customers the option of purchasing extra protection on your phone for 2-3 years. Koodo should as well, these are expensive phones if anything happens beyond the 1 year manufacture warranty koodo offers we are screwed. Not good! I think Koodo is awsome but needs to catch up with other providers.
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Luz Polio

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Posted 5 years ago

  • 4
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rikkster, Mobile Master

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Hey Luz, welcome to the community! This topic has been discussed in the past and met with mixed reaction. See links below.

http://bit.ly/17cwRlt

http://bit.ly/15eEUS7
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quasarito

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These "protection" services do not make sense. They generally cost $10/mo and then if you request a replacement phone, you are charged a service replacement fee between $150-$250.

Lets look at the economics of this service. Generally, phones are covered by manufacturers the first year. So your first year of premiums for this are like a deductible (free money for the company because they would just send it to the manufacturer for repair) -- so $120 for year 1.
Now lets say you make a claim in the second year of this "protection" service -- so lets say on average, 6-months into the year. That's an additional $60 in "protection" service. So in total now, you've paid $180.
When you make a claim, there is that nasty service replacement fee: so in total, you will pay between $330-$430 for this replacement. After 18-months of receiving the phone, it is already a dinosaur of a phone. Why would you want to have it replaced with the same model after forking out that much money? In addition, these services say that the replacement can be replaced with the same or "comparable" model -- and the phone is not even guaranteed to be new -- it could be a refurbished phone!

You are better off starting your own device protection service by setting up some sort of automatic savings program to withdraw $10/mo into a separate bank account, and then draw from the at account if you need a replacement phone. Plus, if you end up not needing a replacement for a long time, you can use those funds for other purposes. With the "protection" service, that money is not recoverable if you don't use it. Also, if you ever stop paying for the "protection" service, you lose out on all those premiums you paid -- yet another reason to do it on your own, plus you get to keep your money.

Sorry to shoot down your idea, but I feel that some math whiz smarter than us has already figured how to make this profitable for the carriers offering these services, so although you may "feel" you are ahead of the game with a "protection" service, you really are not.
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Mayumi, Mobile Master

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Also this idea is "Under consideration"

http://community.koodomobile.com/kood...
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Myke

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It really should be on the manufacturers and not the mobile service provider to offer extended warranty. I know Apple does this.
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Ivan, Mobile Master

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There is also Square Trade, though that's not available everywhere in Canada.

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