Poorly-Worded Warranty Language?

[RJM62]

I came across this language in an email about a Square Trade extended warranty:

Coverage Amount: Up to the maximum coverage price of this Protection Plan, or the purchase price of your item, whichever is lower.

Protection Plan Price: $59.88​

To me, on first reading, this meant that the coverage limit would be either the actual purchase price of the item, or $59.98, whichever is lower. Does anyone else read it that way?

What it actually means, I found out, was that a warranty sold at $59.88 might cover items with prices as high as $1,000.00; but if the actual purchase price was, say, $799.00, then it would be covered for up to $799.00.

To me, it seems poorly-written. I think it should have used "coverage value" rather than "coverage price" to eliminate the ambiguity. Any thoughts?

Rich

 

[Mason]

I agree.

 

[flyingron]

No, the "coverage price" is not the price you paid for the warranty, it's the stated warranty limit.

Your airplane insurance coverage price would be $1MM, not the $2000 or whatever you pay for it.
The bigger issue with ST is that they have a pretty high deductible, so you have to wonder if it is worth it.

 

[RJM62]

No, the "coverage price" is not the price you paid for the warranty, it's the stated warranty limit.

Your airplane insurance coverage price would be $1MM, not the $2000 or whatever you pay for it.
The bigger issue with ST is that they have a pretty high deductible, so you have to wonder if it is worth it.

I think you're thinking of Asurion. I don't think I've ever come across a Square Trade warranty that had a deductible.

That's not to say I think it's usually worth the money. I've just never come across one with a deductible.

Rich

 

[flyingron]

SquareTrade smartphone plans have a deductible between $25 and $125 according to their own site.

 

[RJM62]

SquareTrade smartphone plans have a deductible between $25 and $125 according to their own site.

Very possible. I've never had one on a smartphone. I have one on a grill, one on a dash cam, and one on a generator, none of which have any deductible.

Rich