Does It Pay To Have Cell Phone Insurance?

Susan Koeppen Answers That, Other Viewer Questions In New Series, "Ask It Early"

(CBS)  Early Show consumer correspondent Susan Koeppen began a series Thursday in which viewers get to pick her brain about pressing consumer issues.

In "Ask It Early," Koeppen plays videos of viewers asking the questions, then responds to them.

On Thursday, Koeppen had words to the wise about whether cell phone insurance is worth the cost, where to find toys that are made in the U.S.A., and how to bypass phone mazes when you want to speak to a human being.

CELL PHONE INSURANCE

It's probably NOT a good idea to buy insurance for your cell phone. All the major carriers offer plans, which usually run about $5 a month. They also have deductibles, which can range from $35 to $100. So, let's say you lose your phone after one year. You'd be out the $60 you spent on the monthly insurance fees, plus the deductible. So, at a minimum, you're talking about $100. Also, the company may not replace your lost or stolen phone with the same model. So, in the end, it may be less expensive to just buy a new phone. And, when you're buying a phone, make sure you get one that has a high reliability rating: You don't want to get stuck with a dud that stops working after a month.

MADE-IN-U.S.A. TOYS

Lead in toys is obviously a huge concern. There were more than 80 recalls last year. And many people are looking for an alternative to toys made in China that may contain lead. The good news is that we have several good options available, including a couple of very good wood toy companies here in the U.S. The oldest is the Holgate Toy Company, which has been around since 1789. History buffs know that's the year the U.S. Constitution was signed. And here's another interesting piece of trivia: When Fred Rogers, better known as "Mister Rogers," went looking for someone to make his famous Neighborhood Trolley, he turned to Holgate. Another great company that sells wood toys is Maple Landmark Woodcraft, out of Vermont. Now, if you're looking for any type of toy made in the U-S, you can go to the Web site USMadeToys.com, which features a wide variety of toys made in the U.S.

GETTING AROUND AUTOMATIC CUSTOMER SERVICE PHONE ANSWERING

This is a universal problem. How often have you called a customer service number, only to be prompted to press number after number, and then still be made to wait for what seems like days? The reason for this is purely economic. It's less expensive to have a computer initially handle calls, because not everyone needs to talk to a live person. Sometimes, you may just need a mailing address or directions and if that's the case, a computer message should suffice. Now, if you know that you MUST speak with a live person and you don't want to go through a maze to speak with him or her, there are a couple of Web sites that can help you. The first is GetHuman.com and the second is DialaHuman.com. Both list a number of major companies and give tips on how you can get directly to an operator without going through the dreaded phone maze.

---

To submit a video to Koeppen, click here.

[lilbopeeps73]

I agree with Susan. Think about it 5/month for 2 yrs plus a 50 dollar deductable please. Just another way to get our money. I have been in this situation and it is just cheaper to get another phone via an auction website 40-50 bucks and then a 99 cent sim card and the phones are brand new and work just fine.

[whatsup49]

i worked for a cell company, and let me tell you, yes, we had insurance, $5 a mnth, and charged a deductible, but the contract between the user and the company states phones covered under the insurance plan can (and usually always are) replaced by reconditioned phones. Very rarely were new phones ever shipped out as replacements. If the model being replaced wasn''t available, the consumer was shipped one with similar capabilities and features. Even if the phone was just a week old, it would be replaced with a reconditioned phone under the insurance plan.

[CingularBabe]

When you consider that you must pay FULL price to replace a phone, insurance is, in fact, a bargain! It is well worth both the $5 a month and the $50 deductible when you consider that the FULL price on even a "cheap" (i.e., "free" -- for NEW customers or customers out of contract) phone can be about $200!! GET the insurance -- it''s worth it. And the emrgency road-side assistance is, in fact, a bargain as well!

[corys00]

Susan Koeppen, I''m quite ashamed at CBS for even considering you an expert. I hope people from each cell phone company will chime in with their respective policy but here is the only ways you will get a phone at a subsidized price at Verizon Wireless. New customer, eligible for an upgrade (That''s after being into your current contract for a minimum of 20 months), early upgrade eligibility on lines 49.99 or higher (so for family share plans, that''s only the primary line). Insurance is highly recommended especially for the higher end phones as that Blackberry Pearl you just purchased for 199.99 is 469.99 full retail. And if someone actually believed what you said and passed on insurance and then dropped their phone into a bucket of water they''re paying that full retail price, not "$50", if they had insurance, $50 deductible and Assurion''s sending one to you. Also, at least for the phone companies, the automated menus for Customer Service are there because of how many "How do I check my voicemail?" questions are received daily. If they maintained a high enough staff to address every single simple question, I guarantee that extra cost would be passed on to the customer. Here''s some research homework for you. Find out how much it cost the companies each time someone calls in to speak to a customer service representative.

[chipinohio]

sell Verizon Wireless, and I would love for her to show me which phone a customer can buy for $50.00. Maybe a used phone off of Ebay, but a brand new phone that has never been used, you are looking at least $150.00 plus! It does not matter if you are a current customer or not unless you are eligible for an upgrade.

[jim1958m]

Don''t worry guys, Susan''s probably making big bucks to pass out this valuable info. If you lose your phone and can''t get a brandy new one for $50 like Susan states, just give her a shout and she''ll take care of it.
Just like the host on the show said consumers need more a sense of entitlement. As if they didn''t have thaat aleady. Just work in a busy cell phone store for a day Susan baby.

[noosnose]

I purchased insurance because the original phone I received with my first contract blacked out just after I had it one year. T-Mobile did replace my phone but I had to increase my contract another year. After about 3-4 months, I accidently dropped the second phone on my concrete driveway. I then had to replace it again. This time through the insurance company. Altho I am paying $3.99/month for insurance and I had to pay $40 deductible, it was worth it BECAUSE now I don''t have to buy into their racket of being forced to sign up for another year if the phone goes bad. Their orginal phone was defective, yet they made me sign up for another year. The phone the insurance company sent me was the same model but had features the original phone did not. They also sent a protective case with it which I never got from the T-Mobile people upon first signing up.

[noosnose]

I purchased insurance because the original phone I received with my first contract blacked out just after I had it one year. T-Mobile did replace my phone but I had to increase my contract another year. After about 3-4 months, I accidently dropped the second phone on my concrete driveway. I then had to replace it again. This time through the insurance company. Altho I am paying $3.99/month for insurance and I had to pay $40 deductible, it was worth it BECAUSE now I don''t have to buy into their racket of being forced to sign up for another year if the phone goes bad. Their orginal phone was defective, yet they made me sign up for another year. The phone the insurance company sent me was the same model but had features the original phone did not. They also sent a protective case with it which I never got from the T-Mobile people upon first signing up.

[buckyboyil]

Hi susan ,I think it''s a good thing,I have a problem can''t get thru the e mail so hope you will read this,I have cancer and my car several days ago engulf in flames is there a place where i can get a good used car ,free or almost free please help thanks

[jim1958m]

You might want to tell Susan Koeppen your so-called consumer expert to do a little research before she goes on the air in front of a national audience and gives out false information. I just heard her tell a national audience not to buy cell phone insurance because it''s $4-$7 a month, deductibles are $50-$100 a month and you''ll probably just get a refurbished phone. She said why do that when you can just buy a new phone for probably $50. LOL! Susan just said`we need to be armed with information. Really? Well not when it''s the wrong info. I worked for a large nationwide carrier for several years and it''s just not true you can just go buy a new phone for $50 if you''ve lost one and you don''t have insurance. The reason you gt that first phone so cheap is because the company subsidized a good portion of the cost for you per your agreement to enter into a contact, in most cases 2 years, and pay a monthly service fee. If you lose the phone, have no insurance,you are in most cases going to be required to pay an amount close to full retail value of the phone. $150-$500 would be a more accurate range depending on the type of phone. From most basic model to high end smartphone you will pay a premium no matter what. Susan is obviously very misinformed.

[rdotpride]

I agree with the first guy..........There is NO WAY that you are going to get a BRAND NEW cell phone for $50.00..........Trust me I work for a cell phone company, and I cant tell you how many people call in and get upset because they have to pay a deductible for a phone...........Lets think for a moment. If you have car insurance dont you have to pay a $500 - $1000 deductible, Maybe I should call my car insurance provider and tell them I dont want insurance anymore...........NOT.........

[rdotpride]

I agree with the first guy..........There is NO WAY that you are going to get a BRAND NEW cell phone for $50.00..........Trust me I work for a cell phone company, and I cant tell you how many people call in and get upset because they have to pay a deductible for a phone...........Lets think for a moment. If you have car insurance dont you have to pay a $500 - $1000 deductible, Maybe I should call my car insurance provider and tell them I dont want insurance anymore...........NOT.........

[rdotpride]

I agree with the first guy..........There is NO WAY that you are going to get a BRAND NEW cell phone for $50.00..........Trust me I work for a cell phone company, and I cant tell you how many people call in and get upset because they have to pay a deductible for a phone...........Lets think for a moment. If you have car insurance dont you have to pay a $500 - $1000 deductible, Maybe I should call my car insurance provider and tell them I dont want insurance anymore...........NOT.........

[rdotpride]

I agree with the first guy..........There is NO WAY that you are going to get a BRAND NEW cell phone for $50.00..........Trust me I work for a cell phone company, and I cant tell you how many people call in and get upset because they have to pay a deductible for a phone...........Lets think for a moment. If you have car insurance dont you have to pay a $500 - $1000 deductible, Maybe I should call my car insurance provider and tell them I dont want insurance anymore...........NOT.........

[rdotpride]

I agree with the first guy..........There is NO WAY that you are going to get a BRAND NEW cell phone for $50.00..........Trust me I work for a cell phone company, and I cant tell you how many people call in and get upset because they have to pay a deductible for a phone...........Lets think for a moment. If you have car insurance dont you have to pay a $500 - $1000 deductible, Maybe I should call my car insurance provider and tell them I dont want insurance anymore...........NOT.........

[jim1958m]

You might want to tell Susan Koeppen your so-called consumer expert to do a little research before she goes on the air in front of a national audience and gives out false information. I just heard her tell a national audience not to buy cell phone insurance because it''s $4-$7 a month, deductibles are $50-$100 a month and you''ll probably just get a refurbished phone. She said why do that when you can just buy a new phone for probably $50. LOL! Susan just said`we need to be armed with information. Really? Well not when it''s the wrong info. I worked for a large nationwide carrier for several years and it''s just not true you can just go buy a new phone for $50 if you''ve lost one and you don''t have insurance. The reason you gt that first phone so cheap is because the company subsidized a good portion of the cost for you per your agreement to enter into a contact, in most cases 2 years, and pay a monthly service fee. If you lose the phone, have no insurance,you are in most cases going to be required to pay an amount close to full retail value of the phone. $150-$500 would be a more accurate range depending on the type of phone. From most basic model to high end smartphone you will pay a premium no matter what. Susan is obviously very misinformed.

The link provided on the webpage DialHuman.com is incorrect. It should be DialAHuman.com. I tested it several times before I discovered the correct web address. The Webmasters for the Early Show may want to get this corrected to assist website visitors. Both sites are great resources and I am thrilled to add this to my personal tools!