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iPhone Owners Smashing Device to Get Upgrade

By - Source: Tom's Guide US | B 19 comments

An iPhone insurance carrier says that four in six claims are suspicious, and is worse when a new model appears on the market.

Supercover Insurance is alleging that many iPhone owners are deliberately smashing their devices and filing false claims in order to upgrade to the latest model. The gadget insurance company told Sky News Sunday that it saw a 50-percent rise in claims during the month Apple launched the latest version, the iPhone 3GS.

"While most customers take out insurance because they value their iPhone, we started to notice increases in claims as new and upgraded iPhones were launched," said Carmi Korine, director of Supercover Insurance. "For short periods around new model or upgrade launches, claims to replace lost, stolen or damaged iPhones go through the roof."

Korina added that iPhone owners can't seem to wait it out for an upgrade, wanting to stay current by getting the latest model after resorting to "extreme measures." Many damaged models received by the company show at least six blows by a hammer. Korina said that one device was even dropped on the pavement and then run over by a car.

Four in ten of the iPhone claims received by Supercover is deemed "suspicious." Korina said that iPhones are very difficult to damage, making the false claims are actually easy to spot. "Very badly damaged iPhones draw attention because they turn up in a state that even being driven over by a car or dropped from a tall building will fail to achieve," Korina said.

Time for a manual upgrade.

Display 19 Comments.
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Top Comments
  • 29 Hide
    rhino13 , February 16, 2010 5:14 PM
    Don't give them the lastest version. Give them the version they broke.
  • 25 Hide
    datawrecker , February 16, 2010 5:05 PM
    Like i always said, 4 out of 6 apple owners are criminals. :p 
  • 13 Hide
    JohnnyLucky , February 16, 2010 5:40 PM
    Hmmm...replacing the damaged item with the eact same item seems like a good idea.
Other Comments
  • 25 Hide
    datawrecker , February 16, 2010 5:05 PM
    Like i always said, 4 out of 6 apple owners are criminals. :p 
  • -2 Hide
    brendano257 , February 16, 2010 5:13 PM
    If only they looked up the guides for jail breaking they wouldn't have to come up with such cruel methods ^_^
  • 29 Hide
    rhino13 , February 16, 2010 5:14 PM
    Don't give them the lastest version. Give them the version they broke.
  • 11 Hide
    darkknight22 , February 16, 2010 5:17 PM
    I would like to dispute the "they are very hard to break" claim. I have seen NUMEROUS cracked screens from people just dropping them while getting out of there car.
  • 13 Hide
    JohnnyLucky , February 16, 2010 5:40 PM
    Hmmm...replacing the damaged item with the eact same item seems like a good idea.
  • 3 Hide
    hellwig , February 16, 2010 5:47 PM
    rhino13Don't give them the lastest version. Give them the version they broke.

    Agreed. Hell, give them a refurb. That'll show anyone greedy enough to break a perfectly good phone in an attempt to get a newer model. I mean, what kind of insurance policy even agrees to an upgrade like that in the first place? Maybe if there weren't any of the old ones lying around, but people would have to wait months for that to happen.
  • 2 Hide
    Honis , February 16, 2010 6:03 PM
    Is the insurance company sure the iPhone owners aren't just pissed they got screwed out of things they though were coming during their hardware revision?
  • 2 Hide
    N.Broekhuijsen , February 16, 2010 6:43 PM
    Quote:
    Four in ten of the iPhone claims received by Supercover is deemed "suspicious."


    and i can think of soooo many ways to destroy a phone and not make it look suspicious

    for example,
    - sparky to the plug of iphone, and fry the electrics
    - overvolt the usb charging it (external usb charger)
    - no more or ppl will start getting inspired, and no, i dont have an iPhone, never will
  • 2 Hide
    dark_lord69 , February 16, 2010 6:49 PM
    A-holes like these are why insurance costs sooo much. I never get the insurance cause I don't waist my money on an over priced phone.
  • 2 Hide
    haunted one , February 16, 2010 7:16 PM
    The article says "4 in 6" at the beginning and "4 in 10" at the end. ???
  • 1 Hide
    antilycus , February 16, 2010 7:19 PM
    is that a joke? Every person I know that owns an iPhone has had the screen cracked on em One was on a 3 foot drop from the couch to a hardwood floor. Shattered. Dont think for a second that apple builds a quality product in this day in age. Every software update and product update Apple makes, quality gets signficantly worse.
  • 0 Hide
    pweeb , February 16, 2010 9:47 PM
    Good!!! Abuse the insurance companies and see how they like it. Keep it up
  • 0 Hide
    thegreathuntingdolphin , February 16, 2010 10:09 PM
    Isn't the fee for replacing your phone crazy expensive?
  • 0 Hide
    matt87_50 , February 16, 2010 10:44 PM
    pweebGood!!! Abuse the insurance companies and see how they like it. Keep it up


    pfft, what do you think they are going to do? go crying to mom? confess to finally seeing how evil they are and changing there ways? helping to cure cancer?

    no, they will just charge everyone, especially people using the service properly MORE for their insurance to cover costs.
  • 1 Hide
    mediv42 , February 17, 2010 12:57 AM
    Quote:
    A-holes like these are why insurance costs sooo much.

    Quote:
    they will just charge everyone, especially people using the service properly MORE for their insurance to cover costs.


    Actually I'd say insanely fat profit margins are why insurance costs so much - but yea this might contribute too.

    In general for electronics retail, extended warranties and service plans come with fatter profit margins than almost anything else in the store. Ask anyone who works retail. (thats counting people who abuse it.)
  • 0 Hide
    Anonymous , February 17, 2010 5:27 PM
    This is the same insurance company that says they will replace your phone within 48 hours, only they then change the terms but forget to tell you.

    They do replace the broken/stolen iPhone with the same model.

    With the hassle I've seen with friends who have either had their iPhone stolen or a legitimately damaged phone - I wouldn't touch this company with a barge pole.
  • 0 Hide
    Anonymous , February 17, 2010 7:25 PM
    Yeah, I assumed this was going on because of an eBay incident I ran into. I found a broken iPhone on the ground with a completely shattered screen (just utterly destroyed) and potentially water damaged (it was in a pile of snow when I found it). I put it up on eBay, thinking someone might want it for parts (especially since it was a 3G with the biggest hard drive). I list everything wrong, say it's completely broken, no cords, probably doesn't turn on, selling it as-is for parts.

    It got over 20 bids and the winning bid was $265. Crazy! I knew they must be scamming either Apple or some insurance company.
  • 0 Hide
    zak_mckraken , February 18, 2010 12:05 PM
    I have a friend who microwaves his video cards every now and then to get an "equal or better replacement" from the vendor, so I'm not surprised at all at this.
  • 0 Hide
    Anonymous , February 18, 2010 10:30 PM
    LOL @ insurance market..

    I didn't take out insurance on my phone because i didn't want to pay them $7 extra per month.. 2 months after i got it... i had to replace my screen at my cost.. would have cost me $14... instead cost me $150. So that means... 2 months in, $136 down in my pocket..

    Now, after latest forced firmware upgrade, it DISABLED my WIFI "cannot connect to wifi network" on EVERY WIFI i tried..... I tried everything from looking up internet, reinstalling base OS, restoring, clearing network settings blah blah... Phone is useless to me without WIFI...

    This is 3 months AFTER my damn phone elapsed its own 1yo warranty (still paying phone off though for another 9 months sigh!)

    So 12 months * $7 = $84.. not sure if the "extra" insurance goes on after crap warranty of 1 year.

    SO i'm still down $74 by not getting insurance.. I LOSE lol...

    However, given i swapped my phone with my wife, jailbroke hers , i'm getting MUCH more enjoyment out of looking at new things without spending the $$$$$ on all the crap software to find good things..

    I have purchased two items since jailbreaking - the sleep clock and the qik video after i saw those two neat apps ... if a app is worth it, i'll buy it... I've wasted a lot of $$ on crappo stuff too haha.

    But back to insurance... they will raise premiums or have specific terms built in to address this.. next time i think i'll get the insurance...
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