Role of insurances and your dispensability

Insurance for everyday consumer items may not be necessary.

10:33 02 May 2013

For a world that seems to be plagued with disposable consumer items, it almost seems ridiculous to invest any money in insuring anything. The possible advantage is that if for whatever reason something goes wrong with the device, having some kind of insurance for repairs and servicing plans may make sense until it is ready to be replaced.

 

Standing in any checkout line with those mid ranged priced electronics, the automatic pilot of the clerk is to up sell the store’s or manufacturer’s insurance package of repair or replacement triggering the knee jerking response of “getting more money for what from me” response and facing it again when the need to register it for updates and other company services. The truth in the matter is not only the original price of the item but it “net” worth in usage.

 

• What is the cost of the insurance package in relationship to the item’s price? Is there any additional costs no readily disclosed such as paying for return postage? Is the time and effort to complete the process worth the potential savings?

 

• Total usage of the item. Just like a car, its value depreciates over time. With smaller consumer items, it is a matter of months. Will the cost of repairing it out weight the cost of replacing it? Are you or they providing the temporary items while being serviced? If you need to supply it, is it really worth having it? What is the turnaround time?

 

• What defects or damages are covered and what will cause the insurance contract to be null in void. Is it transferrable to additional or other devices?

 

Having insurance on your consumer items, especially when used for work situations, does provide the peace of mind in the event that something should happen. But the coverage should reflect a cost savings for any mishap when the new replacements aren’t immediately possible.