Comments on: 2009 In Review http://sweatingthebigstuff.com/2009-in-review/ Spending Wisely: Making Smart Personal Finance Decisions Tue, 07 Feb 2012 07:05:40 +0000 hourly 1 By: Suzie http://sweatingthebigstuff.com/2009-in-review/comment-page-1/#comment-388 Suzie Fri, 01 Jan 2010 15:54:22 +0000 http://sweatingthebigstuff.com/?p=1011#comment-388 One more thought: assuming that I can get a new phone every 18 months, that means that i really pay $90 to insure my phone.So, that's the figure I need to use - is it worth $90 to avoid having to pay for a new phone in case I lose mine? When I look at it that way, it really is not worthwhile. HAPPY NEW YEAR One more thought: assuming that I can get a new phone every 18 months, that means that i really pay $90 to insure my phone.So, that’s the figure I need to use – is it worth $90 to avoid having to pay for a new phone in case I lose mine? When I look at it that way, it really is not worthwhile. HAPPY NEW YEAR

]]> By: Suzie http://sweatingthebigstuff.com/2009-in-review/comment-page-1/#comment-385 Suzie Thu, 31 Dec 2009 15:43:35 +0000 http://sweatingthebigstuff.com/?p=1011#comment-385 I followed the link to your blog about Phone Insurance. It made sense to me on an account with 5 phones. But, I have only one phone. It would cost me $60 a year for insurance, and since it is not the basic phone, about $200 to replace. I don't know what the replacement fee would be - I think no more than $50. So, I would be spending $110 with insurance, rather than $200. Seems like I would save money, right? BUT, the way I look at it is like this: by buying insurance I am definitely spending $50, and if I lose the phone, $110. If I don't get insurance, I am spending nothing, but MAY have to spend $200 to replace it. I'm sure someone else who reads your blog knows more about probabilities than me, but it seems like the insurance is only worthwhile if there is about a 50% chance of losing the phone! I'm sure the odds of losing a phone are a lot less than that. Last point: I wonder if it is worth the insurance if you have a very expensive phone (like an I-phone) or Droid? I followed the link to your blog about Phone Insurance. It made sense to me on an account with 5 phones. But, I have only one phone. It would cost me $60 a year for insurance, and since it is not the basic phone, about $200 to replace. I don’t know what the replacement fee would be – I think no more than $50. So, I would be spending $110 with insurance, rather than $200. Seems like I would save money, right? BUT, the way I look at it is like this: by buying insurance I am definitely spending $50, and if I lose the phone, $110. If I don’t get insurance, I am spending nothing, but MAY have to spend $200 to replace it. I’m sure someone else who reads your blog knows more about probabilities than me, but it seems like the insurance is only worthwhile if there is about a 50% chance of losing the phone! I’m sure the odds of losing a phone are a lot less than that.
Last point: I wonder if it is worth the insurance if you have a very expensive phone (like an I-phone) or Droid?

]]> By: Daniel http://sweatingthebigstuff.com/2009-in-review/comment-page-1/#comment-386 Daniel Thu, 31 Dec 2009 15:12:46 +0000 http://sweatingthebigstuff.com/?p=1011#comment-386 Great point! Here's how I would break it down: If you get insurance, you'll pay: $110 if it breaks, $60 if it doesnt ($85 avg) If you don't get insurance, you'll pay: $200 if it breaks, $0 if it doesn't ($100 avg) Assuming that you break your phone half the time...it would save you $15 on average to insure your phone. If you spread this out to two years, if you lose your insured phone, you'll be paying $180 for insurance vs. $200 if you lose an uninsured phone. Like you said, you probably don't lose or break your phone once 50% of the time. It definitely depends on the person. I'd look at your history; if you break your phones a lot, go with insurance. But as you alluded to in your ocmment, the odds of losing or breaking a phone are fairly low, so in your situation, I'd say forget about it! The insurance for expensive phones is probably worth it for $5 a month, but I'm not sure if the costs increase for expensive phones. Also, I know that Apple will replace a cracked screen for free. What are the odds of you losing your iPhone? I'd guess pretty low. Great point!

Here’s how I would break it down:

If you get insurance, you’ll pay: $110 if it breaks, $60 if it doesnt ($85 avg)
If you don’t get insurance, you’ll pay: $200 if it breaks, $0 if it doesn’t ($100 avg)

Assuming that you break your phone half the time…it would save you $15 on average to insure your phone. If you spread this out to two years, if you lose your insured phone, you’ll be paying $180 for insurance vs. $200 if you lose an uninsured phone. Like you said, you probably don’t lose or break your phone once 50% of the time. It definitely depends on the person. I’d look at your history; if you break your phones a lot, go with insurance. But as you alluded to in your ocmment, the odds of losing or breaking a phone are fairly low, so in your situation, I’d say forget about it!

The insurance for expensive phones is probably worth it for $5 a month, but I’m not sure if the costs increase for expensive phones. Also, I know that Apple will replace a cracked screen for free. What are the odds of you losing your iPhone? I’d guess pretty low.

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