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Allyson Kazmucha
If you plan on picking up a new iPad Air 2 or new iPad mini, one of the questions you're probably asking yourself is whether or not you should buy AppleCare+ insurance, something else, or forego insurance altogether. It's a question we get asked on a rather regular basis here at iMore so I figured the best way to address it was to put together a guide, since no one insurance plan is right for everyone. And more importantly, if you're using a credit card to buy your new iPad, you may be covered already and not even know it! Follow along to see what we think are the best insurance options to protect your new iPad!
AppleCare vs. AppleCare+
When you buy your iPad, you'll receive one year of complimentary AppleCare coverage. This coverage costs you nothing and is automatically added the day you purchase your iPad. These are the things that the free version of AppleCare offers -
- 1-year limited warranty against defects
- 90 days complimentary phone support
The basic version of AppleCare does not protect against any kind of accidental damage. That's where AppleCare+ comes into play.
AppleCare+ costs an additional $99 and must be purchased either at the same time, or within 60 days of purchasing your new iPad. It will extend the standard one year warranty to two years and give you phone support for those full two years — as opposed to the 90 days after purchase that comes standard. That means if you ever run into an issue with your iPad, you can dial 1-800-MY-APPLE and ask for AppleCare, or you can call 1-800-APL-CARE directly.
If you break your iPad, you're covered, no matter how bad the damage may be or what caused it. AppleCare+ gives you two incidents where, for a $49 deductible, you can exchange your broken iPad for an on the spot replacement. The one thing AppleCare+ does not protect you against is theft or loss, which may be something to consider.
Of course, to get the most value out of AppleCare+, it helps if you live close to an Apple Retail Store. If not, you'll need to mail your iPad out to get it serviced. If you rely on your iPad daily, that may be something worth thinking about.
Check your credit card benefits
A lot of folks don't seem to realize that many credit cards come with lots of warranty and insurance policies built right in. For example, my AAdvantage Card from CitiBank offers up to one additional year coverage on any manufacturer's warranty. That means the iPad Air that I purchased with my AAdvantage card is covered an additional year without any additional cost to me. The only stipulation? That I paid for the entire purchase on that specific card. This typically isn't a problem for anyone unless you split the purchase between multiple payment sources.
A lot of different credit card companies offer these kinds of perks. I don't think I have a card in my wallet that doesn't offer some kind of warranty protection for electronics. It's become commonplace yet a lot of consumers don't seem to take advantage of them. Simply check your member benefits in order to see what kind of insurance policies you're protected by — most of which can easily be found online. A lot of credit card companies even cover theft and loss up to 100% of the purchase price as long as you made the purchase with them.
SquareTrade insurance
There are a few third party companies that do nothing but sell electronics insurance. SquareTrade is one of the largest names out there and one of the only ones I know enough about to feel comfortable recommending.
SquareTrade offers warranties similar to what Apple offers but, and this is important to remember, are not licensed by Apple. However, SquareTrade offers a three year plan and up to four accidental replacements per warranty type, which is double what AppleCare+ gives you. Just keep in mind that like AppleCare+, SquareTrade does not cover theft and loss.
For iPads, a SquareTrade warranty will cost you between $85 and $129, depending on whether or not you'd like a deductible. If you choose a $49 deductible for each claim, the plan itself is slightly cheaper. The other factor involved is the longevity of the plan, since you can choose between two and three year plans. For example, a 3 year plan with SquareTrade with zero deductible per claim will cost you $129. At this time, SquareTrade doesn't seem to adjust pricing based on the iPad model you own, although you will be required to provide that information, as well as valid proof of purchase. You'll need to purchase your SquareTrade plan within 30 days of buying your new iPad.
SquareTrade will also reimburse you for Genius Bar appointments, offers next day replacements, and even covers same day repairs through local service shops in your area. This alone can make it more appealing to folks that may not live anywhere near an Apple Store. From what I can see, SquareTrade currently covers you for two incidents of damage for the iPad, compared to the 4 they provide for iPhone.
Insurance from carriers and big box retailers
If you plan on picking up a cellular capable iPad from your carrier of choice, many of them will let you insure your iPad through them. Keep in mind however that carriers typically only insure cellular-capable iPads only, though there are some exceptions to this, such at AT&T's Multi-Device Protection Pack — better known as MDPP.
Insurance for an iPad on AT&T's network currently costs $7 monthly. The deductible is $199 if you break it, but it goes down by 25% after 6 months and 50% after 12 months. So at the very least, you'll be paying a $99 deductible to replace your broken iPad plus the $7 a month indefinitely. MDPP plans offer coverage for up to 3 devices, including wifi only iPads. This service runs $30 a month and allows you to get iPad repairs for $89.
However, while AT&T works as a decent base line of what you can expect, carrier insurance offerings vary greatly based on what carrier you have, what kind of contract you have, and many other factors. I'm always hesitant to recommend it over AppleCare+ and other options simply because there are always exorbitant monthly fees plus ever-changing deductibles involved, which are typically on the high side. And to be blunt, carrier insurance is just plain confusing and not something many consumers ever seem to fully understand.
It's also worth mentioning that most carrier insurance companies replace devices with refurbished ones that are not tested and guaranteed by Apple. I've seen some pretty nasty stories about replacements being sent out that had dings in them from the previous owner. I know I wouldn't be too happy to pay hundreds of dollars for a replacement that someone else had already abused.
Some carrier insurance plans offer protection from theft and loss. The AT&T plans mentioned above offer theft and loss protection. Just realize that you're banking on a rather large "what if" scenario and in most cases, the deductible plus monthly fees is almost never in your favor.
As far as big box retailers such as Best Buy, they typically outsource to a lot of the same companies carrier do, meaning you can expect the same experience. The only difference is the plan may cost more upfront. Regardless how the cost is split up, much like carrier insurance, the numbers are not ever in your favor.
Some things to consider
As I said previously, iPad insurance is definitely not one size fits all. What's right for me or the next guy in line may be totally wrong for you. That's why there are a few more things we need to consider before actually deciding on what insurance plan to go with.
Your upgrade cycle
Your new iPad will come standard with a one year manufacturer's warranty against defects at no additional cost to you. If you have to have the latest and greatest each and every year, you may be wasting some money on purchasing AppleCare+ since you most likely won't utilize the second year of coverage.
Just keep in mind that the one year warranty that comes with your iPhone does not cover accidental damage, only defects due to no fault of your own. If you are particularly clumsy, insurance may still be a good idea.
Care and craftiness
Some of us take very good care of our devices, and some of us don't. While using a protective case can't completely guarantee you won't break your iPad if you drop it, it can definitely help minimize the chances. Using heavy duty cases are a good idea for users that are accident prone or those who just want to take the extra precaution.
There are lots of people that hate cases since they add bulk and take away from the joy of using the iPad the way Apple intended you to. It may feel better in the hand without a case on it, but it also greatly increases the chances of it breaking.
Also consider that if you're handy with tools, DIY iPad repairs aren't impossible. They may be more challenging than DIY iPhone repairs but they will be doable for many, especially if a cracked screen is the problem. It'll cost you less, but just weight out the pros and cons, since DIY repair always voids any remaining warranty you have with Apple.
How to decide whether you should get AppleCare+ or something else
Now that we've covered the basics of what each plan covers, what it doesn't, and how they differ, it's time to decide what insurance plan is right for you. Here are my current recommendations, in order of how you should consider them.
Check your credit card benefits right now
Before you read any further in this article, you should absolutely stop what you're doing and check your credit card benefits before you even buy your new iPad. Purchase your new iPad with the card that offers you the best possible member benefits. Then and only then, should you decide what other kind of protection or extended warranty you need.
Who should buy AppleCare+?
AppleCare+ is great for anyone who isn't terribly accident prone and plans on keeping their iPad for more than one year.
For $99 you get the peace of mind in knowing that if you do break it, you only have to pay $49 for an Apple certified replacement. Just take into consideration what your proximity is to your nearest Apple Store as that may play an important role. However, you can always choose mail-in service if you don't mind going a few days without. In my experience, Apple sends a box overnight, you return it overnight and you have a new iPad in your hands within 3 days from the time you submitted your claim. In my opinion, that's a pretty stellar turnaround time and something many people can live with.
Who should purchase insurance from SquareTrade?
If you're particularly accident prone or don't live within close range to an Apple Store, Square Trade may be your best option. Not only do you get more flexibility in choosing your repair options than what AppleCare+ offers, you also have an option for a third year of coverage if you'd like it.
Who should buy carrier insurance?
If you don't live close to an Apple Store, can't for some reason subscribe to SquareTrade, and don't have any kind of protection through credit cards, then maybe it's worth considering carrier insurance. I always struggle to find a reason to recommend carrier insurance. If you have a good argument for carrier insurance, by all means lay it on me in the comments!
Who should buy insurance from a big box retailer?
No one. Read my argument above against carrier insurance. Much of the same applies here as well.
Who should stick to the standard AppleCare warranty?
For those of you who have made it to this last section, you're most likely wondering if you need additional insurance at all. And you know yourself and your usage habits better than anyone else. So go with your gut.
If you take incredibly good care of your stuff, have never dropped or otherwise damaged and iPhone or iPad, or are handy enough to DIY fix it if and when you need to, or don't mind paying for someone else to do it, then you might be just fine with the standard warranty that comes at no additional cost. This is especially true if you upgrade once a year, or more.
People that don't like what-if scenarios also tend to feel better about only paying for service when and if they need it. If that sounds like you, skip insurance altogether and just pay for repairs or replacements when you need it.
Still not sure?
If you still aren't sure what insurance plan, if any, is right for you, the iMore forums are a great place to seek advice. Several of our members have debated and made decisions on a lot of the same issues you're currently facing.
Once you've made your choice, let us know! Are you opting for AppleCare+, SquareTrade, or something else?
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