The issue of extended warranties and replacement plans for mobile devices is a hotly contested one. On one hand, we like to have assurances that we won’t be going without a smartphone should something happen to ours, nor have to foot an unexpected bill for a full-price replacement phone. On the other hand, companies wouldn’t be selling such plans in the first place if they weren’t profitable, which means that in the long run, consumers as a whole are losing money on these. Regardless of your thoughts on such plans in general, we hope you’ll agree that the way Verizon and Asurion are selling their Total Equipment Coverage plan is just a little misleading.
The in-store hang tags advertising the plan note its coverage against loss, theft, damage, and defects. As if to drive that “damage” point home, there’s a nice big picture of a smartphone being dunked in water.
The problem is, if you actually take the time to read the details of the plan, it specifically doesn’t cover damage from “spills of or immersion in food or liquid”.
Obviously, it’s up to shoppers to be aware of all the details of a plan like this before purchasing it, but is Verizon being way underhanded in so prominently associating this insurance with something it absolutely doesn’t cover?