amper's Journal: And #21, No Insurance. This is a deal breaker.

I just found out that although Apple will, in fact, be offering an AppleCare program for the iPhone, no standard cell phone insurance coverage is available through AT&T. This is absolutely outrageous! I've always had insurance coverage on my phones, which up to this point have been Palm phones that sell in the area of $500, so I don't buy AT&T lame explanation that the insurance coverage would be "too expensive to be marketable". What do you take me for, a rube? Do you think I just fell off the turnip truck yesterday?

Phones get dropped. Phones mysteriously break. I've used my insurance three times in the last decade or so to get broken phones replaced. The only reason my wife hasn't used hers is because we've been lucky that when I eventually upgraded my phone, I was able to offer her my old one as a back up.

We started out with cheapy Motorola's, and then I upgraded to a Kyocera 6035 Palm phone. My wife's Motorola one day started making alarming noises at her for no apparent reason. Luckily, I was able to give her my old Motorola to replace hers. I used the insurance on my 6035 twice. The first time, I dropped it and broke the glass screen. The second time, the microphone mysteriously quit working. Both times, a $35 fee replaced a $500 phone. Now, we both have Samsung SPH-i500 Palm phones, and word on the street is that these will be replaced with Treo 650's if damaged, because stock of i500's has finally dried up.

I'm careful with my phones. I really am. But, sometimes things happen, and that's why I'm happy to pay for the insurance. If I were using a chepo phone again, I wouldn't bother, but a $500-plus phone that also dictates you buy at least a hundred dollars in accessories means you *need* to have insurance.

I'm going to look into the reports of third-party insurance coverage. Our car insurance is with State Farm, and they supposedly are offering a "personal items" policy that will cover the iPhone. If I can't get insurance for the iPhone at a reasonable price, I won't be buying one. Period.