Deductible’s are dollar amounts required to be paid by the plan holder if a warranty claim is filed. For example, if you bought an accidental protection plan for your phone and broke the screen during a drop and made a claim for the repair, you usually would have to pay a deductible prior to getting it fixed.
Deductibles are meant as a deterrent to being careless with the items you protect. From a warranty point of view, this helps keep costs down and makes it a fair deal. Extended protection applies as long as you use the item with due care, if an accident happens, then so be it.
Deductibles usually apply only in cases where the plan covers and accident or water damage and are generally not required with straighforward repair or replacement warranties. As a consumer, it is important to understand what coverage you are buying and what the deductibles are.
Deductibles can range from $25 or more depending on the type of plan and coverage you buy. Many of the plans sold by wireless cell phone carriers carry a very high deductible based on the model they follow for repairs and replacement of devices. Lower cost coverage can usually be acquired from third party providers, but are not always easily found or trusted. If buying from a non carrier source, make sure they have a good reputation and legal coverage. Many companies don’t follow proper regulations and sell plans that are no true offerings. Although they may still cover you, they are not doing it by the book.
You’ll likely find accidental warranty coverage available on items that people carry around, like cell phones, cameras, lap tops, tablets, MP3 players etc, as these are carried around a lot and can be potentiall dropped. Some coverage also offers protection from spills or even full immersion. Not all offer both, so check carefully.
Items that don’t get moved around, such as a TV, washer, dryer, dishwasher, audio systems etc should have protection plans that have no deductibles or coverage against accidents.
In general, the higher the deductibles, the lower the price of the protection plan and vice cersa, just make sure you know what you are getting.