[stomicron]

If TEP were free, then everyone would have it. And if TEP cost $100/month, then no one would get it. Right? So it's better to put emotion aside and just look at the numbers as you did, OP.

As you mentioned, the warranty covers most of the problems people have with phones in the first year. Most credit cards will give you additional protection for 30-90 days or so against theft, damage, etc. They will also extend your warranty for a second year.

With all of these protections in place I find it difficult to justify TEP. Yes, if you bought it tomorrow and your phone was stolen next week, it would seem like buying TEP was a great idea. But the majority of people with TEP will pay premiums for years and years that will exceed, by far, the value of what they get in return on the one or two claims they may file in that span. Especially considering the high deductible.

Ask the average TEP user how much they've paid over their (not the phone's) lifetime an how many claims they've filed. Most people could do themselves a favor by just saving the money. Not to mention that there are cheaper warranty options out there if you're hellbent on getting one.

Remember, the question isn't "Do I want my phone fixed if it breaks?"

It's "Does it make financial sense to spend $84/year and $100/claim compared to self-insuring?"