Why I Dropped the Verizon Smartphone Total Mobile Protection Plan

I recently received a update to my Verizon Smartphone Total Mobile Protection Plan that made me re-evaluate whether it is worth it. The plan has become more expensive (from $10 to $11 / month) and the deductible was raised (from $99 to $149).

Verizon Smartphone Total Mobile Protection Plan Update Letter

Asurion Verizon Smartphone Total Mobile Protection Plan Letter FrontAsurion Verizon Smartphone Total Mobile Protection Plan Letter Back

Almost two years ago, I opted into the Verizon Smartphone Total Mobile Protection Plan when I upgraded from a flip phone to a smart phone.  In my haste the $10 / mo fee for the protection plan compared to the relatively large sticker price seemed worth it and I hadn’t revisited my decision.  Plus given my active lifestyle (time spent near the ocean, snowboarding, biking, etc), I figured it might be a good investment.  Over the last two years I’ve paid $240 for that protection plan and still have a fully functional phone.

I found that I could purchase a used Droid Maxx for $99 on Amazon or a new one for $200.  Following this realization, I immediately cancelled my protection plan.  I figured that the $11 per month protection plan with a $149 deductible wasn’t beneficial for a phone that could be replaced for between $99 and $200.

This got me wondering whether I’d make the same decision today. Verizon offers the Droid Maxx 2 for $99 with a 2 year contract or a flat fee of $348.  If I were signing up today, then I might choose to pay the $99 for the phone with a 2 year contract, but I would opt out of the protection plan.  Given a $348 sticker price and a $149 deductible it costs $11 / month to cover $199 (= $348 sticker – $149 deductible).  At a rate of $11 / month I could cover the $199 myself within 18 months.  Furthermore, a $348 phone offered today will be offered for something less tomorrow and the protection plan is not obligated to replace the phone with a new one.  Odds are it will be a refurbished one (i.e. used). Given the fact that I’m on my second phone in 10 years this seems to be an acceptable risk. The potential benefit vs. the cost just isn’t there for me.

It pays to revisit your contracts.  In addition to reducing my monthly bill by $10 by removing the Verizon Smartphone Total Mobile Protection Plan, I discovered that verizon had revised their data plan costs and I could double my monthly data from 1GB to 2GB and save $9 per month.  I also received an additional 3% reduction by switching to paperless billing.  In all, I was able to reduce my monthly bill by over $20 / month while double my monthly data.

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