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Ensquared Challenges AT&T on Revised iPhone Insurance Prices the #1 Authority in Phone Insurance finds itself almost speechless on the latest announcement by AT&T backed by Asurion.
Ever since the introduction of the iPhone, AT&T have been offering iPhone insurance for $11.99 per month with a $199 deductible for the top of the range iPhone; same for every other iPhone model but with lesser deductibles down to around $150. Over the years AT&T has recruited thousands of subscribers to their insurance coverage in good faith. “Ensquared together with Underwriters Fortegra have cut everything down to the bone to compete and beat AT&T over the last 2 years quite successfully. Consumers shopping for iPhone Insurance can visit our review section at for a clear market outlook” said Ensquared CEO, Gordon Polovin.

AT&T has recently announced they will drop their monthly premium to $4.99 – an effective 59% cut to their previous price. Deductibles will be $125 no matter which model, which is a 37% cut for iPhone 4 32 G. All active policies do not qualify, which means if you previously bought the $11.99 in early June or earlier, you are excluded from purchasing this new plan. The number in this category is in the thousands, maybe hundreds of thousands over the last two years.

Customers may wish to terminate their existing policy and re-enter at the $4.99, however an iPhone cannot be older than 30 days after AT&T activation to qualify for insurance. This means that the the customer will be uncovered if they cancel their existing policy or will have to wait until they upgrade. The most serious issue is how AT&T will explain to its huge group of iPhone customers that the last two years have been a complete phone insurance rip off? How was it able to make such a drastic slash on pricing?

“We understand that a 10% or even a 15% cut is reasonable. More than 50% means that the last two years has been a sham – loaded in a huge way with extra profit for AT&T. AT&T is a National Carrier after all. How do they explain such an anomaly to their subscribers who fell for this? Not just a few but teams of them” commented Polovin.

“The tragedy of the whole thing is that in six months time, it will probably be a forgotten event and AT&T will have gotten away with a two-year iPhone insurance bonanza at the consumers’ expense. We hope the facts arouse the necessary ire of AT&T subscribers and creates enough reason to churn to Verizon” said Polovin.

Ensquared believe that all AT&T replacements on this new program will be refurbished devices from customer returns and repairs. Given that replacement cost of iPhone 4 32 GB is north of $700 -$4.99 cannot in any way encompass a new iPhone replacement. We don’t believe that Ensquared current $8 per month with $150 deductible – right now (until AT&T make it official) still the cheapest available – can react to such a price drop.

“That’s because we are consistent and respect the intelligence of our customers. At Ensquared we replace with new (not refurbished) and we also insure iPhones up to 90 days after activation, versus AT&T’s 30-day limit. We believe there will always be buyers for a square Ensquared iPhone insurance deal that has significant differences that the customer values.” remarked Polovin.

Ensquared recently published sales data highlighting the assurgency of Android as a system. AT&T are possibly looking to the the cut-premium iPhone Insurance as a way for customers to swing away from interest in the galloping Android system and to keep momentum going on a product they invested millions in; or this is a weapon designed to hit at Verizon iPhone strategy. Ensquared believes that the drastic change smacks of desperation to keep people buying AT&T iPhones.

About Ensquared: Ensquared is a leader in Smartphone & iPhone Insurance in the USA and Canada covering Lost, Stolen & Accidental Damage. Ensquared insures all phones up to 90 days old.

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