Table of Contents
Most insurance companies require a Repairability Report or an Insurance Report.
This report outlines faults within the laptop, describes what needs to be repaired and officially bounds the repair costs.
Once we diagnose the fault and generate this report, the cost of repairing the Device is fixed, and we can’t change it. Hence we need the customer to bring the Device for inspection and diagnosis to ensure that we have captured all possible faults.
In some scenarios where a Diagnostic is straightforward, i.e. Broken Macbook Screen or multiple broken parts (a car drove over the laptop or fell from the second floor), we can diagnose the Device by providing photographs. This way, we can speed up the Insurance Process if a quicker turnaround is required or, if not feasible, to bring the Device to the workshop sooner.
The Report compares the repairability cost of the Device and the replacement cost o the Device. Also, consider any future faults that may arise due to the current failure.
The final decision of the Insurance Report is up to the Insurance Companies. Based on our findings, we can only suggest the best way to go with the current situation.
The Insurance Report describes the Parts and Costs involved in getting the Device Repaired. Also, there will be the Replacement Value of the Device for comparison. It assists Insurance Companies in comparing and deciding the outcome quickly. It also provides a rapid turnaround on their decisions.
Repairability Report outcome will be a Suggestion to either:
- Repair of the Device – They will use the Repair Cost and Replacement Cost outlined in the Report to decide if Repair is a better outcome
- Replacement of the Device – If the Repair Cost of the Device is close to or higher than the Replacement Cost of the Device, we will suggest replacement of the Device in the Report
Written off Device
Due to increased cases of people double-dipping, we are required to collect the damaged Device after the Insurance Company has written it off.
Recycling the Device is also required, as eWaste is highly pollutant and should not end up in the landfill.
Please be aware that the Report will oblige you to return the Device for Recycling once it has been Replaced.
If the Device was with us for a Diagnostic, it will be Recycled within 60 Days of Report Creation if no arrangements are in Place.
Is it worth going through Home and Content Insurance?
If your Claim Excess is more than half of the Repair Cost of the Device, better is pay out of pocket.
With the drop in the cost of consumer electronics these days, we see more and more people writing off instead of repairing their Devices.
Let’s say the customer had insurance on the laptop and was contemplating writing it off or having it repaired. Unfortunately best-kept secret regarding insurance write-offs is this.
Insurance is similar to afterpay or a credit card, where the interest rate is a combination between the excess and increased premiums for each claim.
For example, let’s look at this HP Elitebook x360 1030, which came with a water spillage and was not turning on. The replacement value of this laptop is more than 1,600$. Their excess to claim insurance and have 1,600$ paid towards a new laptop was 400$ or 25% of the cost of the computer – this is the amount they need to pay to the insurance company to have the value of the laptop released as a voucher to buy a new laptop. Remember that some insurance companies only require you to purchase the laptop from “approved” particular store chains, where the cost could be up to 20% higher than online stores. Processed claim in return means that the insurance premium will jump up approximately 5-10% for the following years.
Insurance cost breakdown estimation
- 25% or 400$ paid excess to claim the insurance
- 5%-10% or 80$-160$ a year in increased premiums
- up to 20% or 360$ markup on up/selling a replacement laptop from an “approved” store
Combined, the customer will have to pay over 400$ for that year and approximately 500$-1000$ in premiums and markups for the 5 years of the expected life of the new laptop.
What about if there is another laptop or device you need to claim the insurance on next month? Perhaps a home and content claim such as flood damage or a more expensive gadget?
Or even worse, what if there is another accident on this laptop, and the customer breaks a replaced laptop screen? Then a second claim needs to be raised and the laptop written off again (over 90% of the insurance claims for devices under 3000$ end up written off and replaced). This would be twice the value of the laptop spent in two claims in under 5 years!
What about the environment? None of these devices is recyclable by the manufacturer or state authorities as they have no value. They end up in the environment. Unfortunately, only the purchase owner appreciates these devices as they have spent their hard-earned cash buying them, so they cannot be resold as they do not have a value if not new.
This is why we are here and do our best to Repair these laptops. Regardless of how hard it gets to repair them, we do our best to keep them out of that grim afterlife.
We are giving them a second chance to be useful again, saving the customers half of the cost of the laptop and saving the environment one device at a time!