For my calculations, I also did not include any repairs performed under any included warranty (such as the extended warranty on the AirPods Pros or the MacBook Pros butterfly keyboard).
For example, I recently had the $399 Magic Keyboard replaced for $49 under my iPad Air's AppleCare, a repair/replacement I otherwise would've been hesitant to pay out-of-pocket for since it didn't affect the keyboards functionality. There are repairs that I have sought primarily because I had a warranty that, without AppleCare, I would've learned to live with because they were largely cosmetic. Import caveats: One of the perks of AppleCare is its generous policy around accidental damage. Crunching these numbers, the calculus began to shift. At this point, I began to rethink everything I believed about the value of AppleCare.Īfter listing the devices I'd purchased AppleCare for, I began to chronicle my service history and what the out-of-pocket repair cost would be. I consider myself very cautious with the handling and upkeep of my Apple products, so why was I spending a fortune on warranties? I have many products right now that have zero AppleCare claims against them: AirPods Max, my M1 MacBook Air, the family iMac, etc. I spent as much on AppleCare as I would on an iMac, MacBook Pro, or high-end iPad Pro.Īfter the shock wore off, I began to feel like a perfect ass. The first thing I did was tally up the cost of ALL the AppleCare I've purchased since Fall 2018. In contrast, the insured often relies on a recollection of their history and a ton of emotional reasoning to decide if they will be the statistical oddity to make "a profit" of having bought insurance. The insurer relies on market data and analytics to set the price of their insurance, ensuring their model remains profitable. On the other hand, the insured is gambling on the fact that they are just blunderous enough that the cost of any future repair will offset the upfront cost of the insurance. The insurer is running on the business model that more people buy insurance than claim insurance, and therefore as a whole, the industry remains profitable. The basic premise behind insurance is that at the onset of a transaction, two parties meet & make a wager where the insurer promises to cover the cost of any accidents that may occur over a specific period if the insured is willing to pay a specified amount upfront. Insurance has to be one of the most interesting of humanity's creations. I buy a lot of AppleCare - probably 80-90% of my products get coverage - but I never sat back and calculated 1) the cost of all these extended warranties and 2) if I was coming out on top, breaking even, or hemorrhaging cash.
Initially, I was incredulous at Wes' position! But the more I thought about it, I realized I had no true sense about my AppleCare spending. Initially, I agreed with Stephen, the cohost whose opinion, and this isn't a direct quote, was: "AppleCare All the Things!" This ran opposite to Wes' argument he maintained that he saves money not purchasing AppleCare since the cost of any out-of-pocket repairs incurred is less across time than if he has purchased AppleCare. I wanted to find out the answer to this question after listening to an episode of The AppleInsider Podcast where the two hosts spoke about whether the merits of paying for repairs out-of-pocket is less than the cost of AppleCare purchases. Do you know if you are paying more for AppleCare than you are for the repairs you claim through Apple's extended warranty program?