On the heels of the release of the iPhone 4S, a top provider of electronics insurance, Worth Ave. Group, has released its recommendation to consumers that they avoid buying a warranty and insure their mobile devices, instead.
The insurer claims that when a customer purchases a warranty for an iPhone 4S, he or she remains unprotected in many ways and runs the risk of possibly needing to spend the hundreds of dollars in replacement fees should something happen to the device.
It is anticipated by analysts, that the latest iPhone product, the 4S, will be one of the mobile devices that sells the fastest ever, as it will be available on over one hundred carriers by the end of the year, and additional opportunities for a free device when the customer signs on for a service contract will also generate a new crop of iPhone users.
Among iPhone devices of all generations, 37 percent are damaged every year. Many of these device owners will harm their products at least twice in incidents that were related to human error. The leading causes of iPhone-related claims are cracks to the screens, stolen devices, and damage from water.
According to Worth Ave. Group, the majority of people believe that insurance and warranties provide the same type of coverage, but they are in fact two entirely different forms of protection.
The marketing director at Worth Ave. Group, Aaron Cooper, said that the majority of iPhone owners don’t realize how much it will cost them if their device falls victim to an accident. Though a warranty will provide protection the first time, if it occurs again, a new warranty will need to be purchased (and a deductible will need to be paid) or a new phone will need to be purchased at full price.