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Holy shit, what a scam.
by EchoChamberMan 3y ago
Holy shit, what a scam.
- gruez 3y agoWait till you hear about auto insurance. They gasp collect more in premiums than they pay out!
- Macha 3y agoThe point with auto insurance (and why you'd use it rather than just putting the equivalent of your premium in a savings account) is that they win the bet most of the time, which means they can afford outlier events which your saving approach alone wouldn't cover. This is different to the claim here AppleCare is profitable on every unit even if they do pay out.
- gruez 3y ago>This is different to the claim here AppleCare is profitable on every unit even if they do pay out. It's clearly worth it if you have butterfingers and manage to break it twice.
- moogly 3y agoBut only exactly twice. Not once. Not thrice.
- gruez 3y ago1. You save $501 when you break it twice, but you still save $501 when you break it 3, 4, or 5 times. You don't get any additional benefits for the additional breaks, but you're still ahead overall. 2. all of the above analysis only covers glass breakage. More costly breakages also changes the equation.
- deleted 3y ago[deleted]
- dghlsakjg 3y agoNot to be that guy, but; actually, a lot of auto insurance companies regularly run their premiums below cost. The profit from insurance comes from investing the premiums before they get paid out as claims. Warren Buffet explains it in a lot of his letters to investors, basically the consumer insurance game is about growing the pot by discounting as close to cost of claims (or below) so you can make investment gains on the money paid as premiums.
- shrubble 3y agoYou don't buy the car, the insurance, and the repair from the same company, however...
- gruez 3y agoYou can buy overpriced phone insurance from third party insurers as well. Apple doesn't have a monopoly on those.
- EchoChamberMan 3y agoIn this scenario, you have to break your product twice to see a benefit. I feel like that's not true for cars.
- blackoil 3y agoFrom a person making claim? That's not a common scenario. It is expected that most people won't have any claim.
- gruez 3y agoThen don't buy applecare. Nobody is forcing you to do so. It's not any different than say, booking a refundable airline ticket, which is the equivalent of "insurance for your plans changing". I checked a random US flight and it's about 60% more. Given that in the past decade or so of flying I never had to cancel or reschedule a flight, it doesn't really make sense for me to pay the premium, but I wouldn't call option of buying such a flexible ticket "a scam".
- blackoil 3y agoI have better idea that will save me $3500+299.