CapitoliaFour products you will be offered, and the rule turns down all four.
A phone worth eight hundred euros.
The cover, say nine euros a month. That is the example's parameter, not a truth.
Over two years that makes two hundred and sixteen euros of premiums.
And there is still the excess, the part everyone forgets to count.
One hundred euros of excess. Three hundred and sixteen euros in all.
Close to forty per cent of what the device cost.
And that is still not the right sum. The insurer only hands back seven hundred euros.
Thirty-one per cent.
In the app, this chapter is animated and narrated, card by card. Start free trial.
Download on theApp Store
You would have to break your phone almost one time in three, over two years.
And if that were you, nobody would sell you cover at that price.
Second product. The extended warranty.
It is sold at the counter, the second you pay. That is not an accident.
It is the moment when the price of the device is still in your head.
Thirty euros next to eight hundred. The comparison does all the work.
And the maker already guarantees the device. You pay twice for part of what you have.
Third product. Travel cancellation cover.
It is often already included in the card that paid for the trip.
Paid for twice, usable once.
Before buying one, read what your card already covers. That is the whole job.
Go back to the emergency fund of the last chapter: twelve thousand euros.
Anything that fits inside it is not insured. You pay your own excess.
And you keep the premiums instead of handing them to somebody else.
Of twenty small objects you will perhaps replace one. You would have insured all twenty.
Twenty premiums paid for a single claim.
The rule has not changed in two chapters. It simply rules a great deal out.