For most users, the first time you hear of laptop insurance, it almost sounds kind of silly.
Of course, if you just spent a couple grand buying the laptop of your choice and then decking it out with all the extra RAM, the best software, and the newest graphics card you can find, then the whole idea starts to make a little more sense.
Laptop security measures really only go so far. Even if you have one of those cool thumbprint detectors, a smart thief can reduce your laptop to parts and use whatever he needs, and a dumb thief will just throw it off a bridge in frustration. Either way, laptop security measures are designed to protect your privacy, not your property (or did you really think that anti-glare security film was really gonna do the job?).
So the short answer to the question, “do I need laptop insurance”, would be yes. But you could get a more accurate answer by asking “how badly do I need laptop insurance?”
If you’ve got a junky second hand laptop you bought off your cousin for two hundred bucks just so you could have something portable to write on… don’t worry about it. Eventually, you’d be paying more than it’s worth to cover yourself.
On the other hand, if your laptop cost you a pay check and a half, insuring it against theft and damage is a pretty good idea.
Here’s something else you need to consider: How much is all that software on your laptop worth? If you’ve still got the CD-ROM hanging around somewhere, you don’t need to worry about it, but anything you downloaded, anything you don’t have another copy of somewhere, it doesn’t seem like you’re spending that much on software when it’s a little here and a little there, but it adds up.
Another thing is that you’ll want to reinsure your laptop for the new value whenever you add more RAM, put in a new graphics card, replace the screen, etcetera. It’s a little like insuring a home, you want to make sure your full investment is covered, from the initial cost to the thousands of dollars of work you put into remodelling the kitchen.
It seems like a bit of a hassle, and yeah, it’s paperwork to fill out, payments to make, and receipts to hold onto, but it’s worth it in the long run. It’s not hard to steal a laptop, nor is it inconceivable that your laptop might be damaged in any number of otherwise minor mishaps. If your laptop has enough actual value that you’d want to be covered in case something happens to it, laptop insurance really is a good idea.
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Went to holiday sale to purchase inexpenses (399.00) + taxes laptop for minimum use for checking mail, games and some surfing the web. However, i walked out store NOT feeling well with a credit charge of $605.00 that includes the laptop and 149.00 insurance for two years. I have a couple of days to drop the insurance but don’t want to make a bigger mistake. My question stems from my past experience in 1995 when I went to a box store and brought an emachines without insurance and it just now squeeking for help and on its last whem. Additional, I have had until recently chose not to buy insurance on new appliancies (tv, refrigs, vacumms and etc) because a product should last at least 2 years before you consider repairs. Would appreciate pep advice. I am so dishearted that the computer is still in car.
Look forward to hearing from you. Have a blessed day.
Insurance of all types is a huge waste of money, particularly for consumer items like a computer. If you look at the statistics, and not just personal fear, it is VERY RARE that a laptop is damaged severely, and even more rare for one to be stolen from a moderately aware owner.
The hardware/software part of the equation is easily repaired or replaced, especially for business owners who can expense them on their taxes. Online software is EASILY replaced by the original vendor, and offline stuff is now mostly available as downloads as well. Reconfiguring is no fun, but there are back up schemes for that as well.
So what’s the much LARGER problem with a laptop? Loss of data, due to hardware/software breakdowns, or other corruptions or thefts. Insurance cannot help with any of these situations, only a regularly scheduled backup process to removable media, and online storage.
Put a DATA BACKUP scheme in place, and forget making insurance companies rich by draining small amounts off your revenue stream.
NO insurance is necessary, except where mandated by law, but that’s another topic for another time.
Paul – That’s very unsound advice. Stats – yes sure, chances are *your* laptop or desktop will not be stolen. But when they are, and you have to replace them, those extra $2-4K from the insurer will make all the difference in the world.
By the way, don’t use strong passwords and don’t worry about losing credit cards – chances are you’ll be fine. And why do you even backup? Look at the stats and relax
Sergei,
And again, you are wrong.
1. First of all, you simply ignore statistics and probability. You CANNOT simply agree with, the statement “chances are yours won’t be stolen” and then say “but when they are…” You’re saying that BOTH are correct, and that’s an contradiction. So you have no logic at all in your discussion there.
2. Secondly, any account that is CRITICAL to your business, you simply don’t use online access for, strong passwords or not. It is STUPID to rely on “passwords” to protect your critical finances. Even if your password is “strong”, it can be stolen by sources inside or outside the institution you are using.
I have separate accounts for onilne banking that I keep minimal amounts in. If they are compromised, it is not that important. My major business accounts have NO online access, therefore passwords are not necessary.
3. One SHOULDN’T worry about losing credit cards or having them compromised. Simply keep track of the activities on them, and if anything unauthorized shows up, you are only responsible for up to $50 of it when you report it – no big deal if/when it happens. Identity theft is an entirely different subject, and has nothing to do with lost or stolen credit cards (just in case you bring that up.)
4. You also MISS the idea about the stats about missing and stolen data, it is much MORE likely to happen, then you losing any actual hardware to theft. Where do you not understand this? One is very likely, the other is not – simple, I thought.
5. You ALSO miss the concept that if a laptop is being used for business, the ENTIRE cost of it is either deductible as an expense, or able to be 100% depreciated over time as an asset. Either way, the cost is paid for by YOU the taxpayer, as it reduces our businesses’ taxable income. Thank you.
However, if your laptop is simply for home use, then of course you do not have this benefit. Of course if you do not have a home-based business of some kind to take advantage of these tax breaks, then you are throwing money away, but that is for another discussion.
6. Also note that many laptop insurance companies have high deductables, won’t cover many peripheral devices that you may have linked to or installed in your laptop, and they may have “special situations and locations”, where you will not get paid at all if they deem you to be careless or in an “unapproved” location. Insurance companies DON’T make money by paying you for your claim – they make money by avoiding it at any cost.
Your advice is inexperienced and not backed up by useful solid data. Most forms of product insurance are a waste of money and of no use to the consumer. Liability insurance for your home and car, life insurance for your family, disability insurance, and health insurance, though all overpriced, are of much greater value.
I WILL agree that if you are personally very clumsy, irresponsible as far as physical security, or simply a nervous personality, than go ahead and get laptop insurance for piece of mind, people do stranger things.
Service contract and product insurance companies LOVE people like you who don’t do the research to determine that you are simply giving them free money for which you will never receive anything of value in return.
But feel free to keep giving them revenue if you like, maybe it will help stimulate the economy, and for that I will salute you!
Paul: If you feel comfortable not insuring your items, you go right ahead.
I’m moving into a college dorm. I’m 22. I bought my laptop for my birthday; it’s the most expensive thing I’ve bought to date. The design on it is unique and it came factory with a dragon on the back of it ( it’s the HP Artist’s Edition laptop).
I’ll be DAMNED if I do not insure it against theft, AND I’m buying a laptop safe to lock it up just for good measure. I don’t trust ANYBODY. Better safe than sorry, I say–considering I’m taking a major income decrease by not working full time, I won’t be able to buy another one of this laptop if it is stolen or compromised in any way.
Hey Siriri,
YOU are exactly the kind of buyer that probably should buy laptop insurance, so that’s fine.
You’ve got a special edition version, you have no income to support its purchase, maintenance, or loss, and you’re living in a high-risk area for theft.
Also, younger people tend to be a bit less careful. I know many people your age who have lost iPods, computers, GPSs, Car Stereos, and even cars, due to a certain “lack of focus” that comes later with age.
So yes, I would take your example as a good exception to look into buying laptop insurance. It’s still a waste of money, and common sense and attentiveness can be substituted, but I understand that people are sometimes focused on other things in their lives and are not always able to protect their belongings.
Go for it.