Why is the “New” AT&T Phone Insurance a big rip off?  Oh, let me count the ways…

1.)  They raised the price.  What used to be $3.99 for insurance is now $4.99 a month.  That is $59.88 a year.  Over a two year plan you’ve paid $119.76.

2.)  Even after paying the $4.99 a month you still have to pay $50.00 to get your phone replaced.  If you replace it one time in a two year period you’ve now spent $169.76.  If you have to replace it twice you’ve spent $219.76.

3.)  You can no longer replace your phone in the store.  You have to call the insurance claims number and type in a bunch of info over the phone and then you have to wait 3 to 6 days to receive the replacement phone.   If you completely mess your phone up you will be completely without a cell phone for almost a week.

4.)  They don’t replace your old phone with a new phone.  They give you a refurbished phone.  Over your contract time you are essentially paying $119 for the privilege of buying a used refurbished phone from them for $50.

5.)  The other condition of receiving this $50 used refurbished phone is that you send your old broken phone back.  The phone that you bought.  The phone that you personally own.  They make you send it back in order to buy a used, refurbished one.  Why?  So they can take your phone, refurbish it and sell it for $50 to the next guy who is paying $119 over his service contract in order to have the privilege of buying a $50 used phone.

I know all of this because I am one of the poor, unlucky saps who has paid the insurance fee for months in order to have the “privilege” of buying a $50 used phone.  Needless to say I am canceling my insurance immediately.

P.S.  They also raised the price for text messaging.  Instead of .10 cents a message it is now .15 cents.   Anything to make an extra buck.  That is AT&T’s policy.  Maybe that should be their new slogan.  “We are AT&T and we do anything to make a buck!  Please join our wireless family so that we can rip you off and your family too.”