Camera insurance: is it worth it?

<p>I would like to know if it's worth purchasing an insurance for a camera. I just purchased a Canon 7D at Best Buy (lucky me!) and I also purchased an insurance that covers accidental drop, spill, and lens cleaning. The price was $375 for four years. After purchasing it, I sort of have a buyer's remorse because that's a lot of money! Any opinion is appreciated.</p>

<p>Whether it's worth it is really a question for you. Just like with all insurance, the question is what your tolerance level is for being self-insured. Look at the cost of this insurance as a percentage of the price you paid for the camera. In this case - about 20 percent. Is there a 20% chance you will drop and break the camera in the next four years? If less than 20 percent chance - could you afford to replace the camera?</p>

<p>All-risk insurance coverage is always pricey. I've dropped one camera and one lens in forty years of photography; so all-risk coverage isn't worth it to me. If you're clumsy and often drop stuff, such coverage may be a good buy for you; but $375 is sure a chunk of change to insure a 7D. </p>

<p>I pay about that much each year but that covers all my equipment, multiple cameras, lenses, lights and so on. And it covers them for theft as well as $1mil in general business liability. Just to put it in perspective.</p>

<p>The camera comes with a 1 year warranty from Canon. Your homeowners or renters insurance could cover the accidental damage part possibly. My first impulse is that no, it's not worth it for the retail store service plans. Typical insurance for equipment is about 1% - 2% of the value of the equipment annually. You paid about 5 1/2 %. So, not the worst deal in the world but not great. Now if you're clumsy and careless and it's not covered by your other insurance then it's probably not such a bad thing.</p>

<p>The Canon products are usually very reliable. As a rule I never buy these store plans. But one exception is for anything Xbox related. Those products have nearly a 100% failuire rate so the plan makes a lot of sense. I would think the Canon bodies failure rate is in low single digits based on what I've seen.</p>

<p>I have a personal property floater that covers my, and my daughter's, cameras etc. It's for a lot of lenses and equipment, but runs just a little more (per year) than you paid for the one camera per year. Your rate and coverage, though, are not outrageous by any means.</p>

<p>Big issue. I just met a photographer who had a car accident and insurance only paid like 20% because they devalued on used. She ended up losing equipment that she used that cost originally cost about $80,000 and now couldn't come close to replacing at what she paid. What type of policies cover that?</p>

<p>As others have said, it would have been a good idea to check with your home owners or renters insurance first to see what is covered already - or what you might have to pay extra to get the same coverage BestBuy offered you. Comparing prices before buying is always a good idea, but it's also easy to get carried away in the excitement of the moment (guess how I know!), and that's what these retail stores prey on. </p>

<p>Personally, I'd be reluctant to buy insurance coverage - or anything else for that matter - from BestBuy, because I have had bad experiences with them in the past in honoring their warranties. I'd rather pay more and order from B&H, Adorama, or KEH than buy from BestBuy, simply because their service is so poor. Not that you usually have to pay more if you avoid BestBuy!</p>

<p>I guess it can't harm to try and get out of the insurance deal they talked you into, but if my past experience with BestBuy is anything to judge by, you'll probably be stuck with what you bought, and have to write off the money as expense for life experiences.</p>

<p>On a more positive note, congratulations on a great camera! I am sure you'll enjoy your 7D!</p>

<p>A general note on the issue raised by Betty:</p>

<p>You <em>can</em> get insurance for "replacement cost" which will cover the cost of replacing the item, not just its depreciated worth. Ask your agent about what it costs, etc.</p>

<p>Strictly speaking, no insurance is "worth it" - in the long run the insurance company makes a profit, which means they take in premiums more than they pay out in claims. The actual risk might represent $200 and the rest is mark-up. </p>

<p>Insurance is most certainly worth it.<br>

It might be a legal requirement, a contractual requirement or just give you peace of mind. As an Englishman, I would not travel to USA without travel insurance, as I could not afford very much in the way of medical treatment. So far I've never claimed, so the insurance co has made a profit on me, but it was certainly worth it.<br>

For my photographic kit, I never buy extended warranties, but I do have an all risks policy to cover loss, or damage to my kit, as currently I could not afford to replace my 500f4 or my IDmk2N.</p>

<p > </p>

 

<p>WELL HERES WHAT I DID , IT DOES NOT COVER MY CLUMSY, DROPPING STUFF LIFESTYLE, HOWEVER AS FAR AS WEAR AND TEAR BEYOND A YEAR HERES WHAT I DID, I WENT TO REFURBDEPOT.COM AND BOUGHT 5 YEARS OF EXTENDED WARRANTY SO IF IT BREAKS, OR WEARS OUT EVEN IF I SHOT WAY MORE THAN THE 100,00 FRAMES A 40D IS SUPPOSE TO IM STILL COVERED IT WAS 50 BUCKS AND IF IT BREAKS I PAY TO SHIP IT TO NEW YORK AND THEY HAVE A TWO WEEK TURN AROUND THEY ASLO CLEAN IT ONCE A YEAR WITH THIS WARRANTY, SO THATS WHAT I DO, WHETHER YOU BUY REFURBED OR NEW THE COVERAGE IS AVAILABLE WITH A REAL RECEIPT.</p>

<p>If you have found that your equipment tends to fail just as it gets out of its manufacturer's warranty, or that you tend to destroy your equipment through various clumsy actions, then extended warranty is just the thing for you. If not, then it's not.<br>

I never buy extended warranty for any new item, no matter its value (I once bought extended warranty for a refurbished item - never needed it, but I had never bought refurbished stuff before that, so I took this extra step - I'll never do it again). I once had an argument with a clerk from Best Buy who kept insisting that I should buy extended warranty until I finally left the store and went to Circuit City to buy the same item - 7 years after, it still works - I wish it could fail so I would have a reason to buy a new one, but that thing still works and I have no reason to change it - needless to say, the extended warranty would have been long expired by now.<br>

Here's another funny story. I bought a wireless phone system from Motorola - the handsets started failing after a year or so because their buttons would break. I was thinking of buying a new system when I found a huge sale at Office Max - something like $10 a handset - I just bought four of them so I could replace the failing ones and keep the system alive a few years more. At the checkout, the clerk was asking me if I want to spend extra $10 for extended warranty for each handset - I stared at her and I told her - why do you think I am getting so many of these - they are my extended warranty!</p>

I bought insurance for my 'L' series lenses as soon as they came out of the box. However nothing has ever happened to my non-L series lenses knock on wood.

<p>Check with your insurance agent who handles your homeowner's or renter's insurance policy. You can usally get a rider to protect your investment for just a few dollars a month.</p>

<p>I find it ironic that ppl will shop around for the best price only to throw the savings away on an extended warranty. Few ppl get any value from it, except the person who sells it. </p>

<p>As others have said, you seem to be using the word "insurance" to mean extended warranty. If you are an amateur, the position at least in the UK is that your equipment is more than likely covered against theft and accidental damage by your household insurance, or could be against payment of a small extra fee. Extended warranty thus covers only breakdown - as others note, breakdown in years 2, 3, 4 of ownership is unlikely, retailers make a lot of money sellling these extended warranties.<br>

If you are a pro, on the other hand, your household insurance will not cover you (although a general business policy will), your gear will cost more than an amateur's and it will be exposed to many more high-risk situations (in transit or overnight in your vehicle, in use in public places with high risk of accidental damage, robbery or vandalism). You are furthermore likely to be required to hold public liability insurance to a level of five million pounds before carrying out activities in public (such as setting up and plugging in lights. setting up a tripod, exhibiting pictures). Insurance in this case is mandatory, and even if it wasn't would be essential for peace of mind (as would cover for bad debts, loss of income due to equipment downtime, etc.).</p>

<p>"accidently drop" your camera in three years and get a new one free, then it will be worth it. Otherwise, can you go back on your purchase? If you were to return the camera (and then re-purchase it later), would they refund you your "insurance"? Personally, I would never purchase such a policy as they tend to be rip-off's. good luck.</p>

<p>Insurance is generally not worth it if the loss is one that you could easily cover yourself. Insurance may well be worth it if the size of the potential loss is such that you would be unable to cover it yourself. (The odds of a loss occurring are more related to determining the cost of the insurance than the need for it.)</p>

<p>If you have a typical income, it probably doesn't make much sense to buy insurance to cover, say, a $200 item. On the other hand, if you have a typical income but own $10,000 worth of camera equipment you probably would not be able to replace it out of your normal funds. Here insurance probably makes a lot of sense.</p>

<p>If you can afford the $200 loss then a $200 deductible makes sense, too. If you could cover $500 then you might save money with a higher deductible.</p>

<p>Dan</p>

<p>I almost never buy an extended warranty and I certainly would not get one for a DSLR but since my camera gear is getting in the 10k range I followed the advice of a friend and put it on my home owners insurance. Its only about $140 a year</p>

<p>BTW, if the question is actually about extended warranties from the manufacturer or the vendor...</p>

<p>... I never get them.</p>

<p>(Well, almost never. I did purchase Applecare for my kids' laptops when they took them off to college. Knowing kids and knowing laptops I felt that it might be a good idea. And it was... :-)</p>

<p>DAn</p>

<p>G Dan, Apple care is the one I would probably take too. I don't think I have owned an apple laptop that has not had problems.</p>

<p>That is of course a decision you have to make for yourself. However, what happens if you do accidentally drop it? Or what if your shutter fails? I bought my first 30d right after it became available at $1500. It only took me a month before I dropped it and wrecked it along with my 24-70L lens which also cost me over a $1000. Luckily it was covered. As a rule, on expesive items such as this, I will buy the plan if it is from a reputable dealer.</p>

<p>You also have to remember that this plan is not an insurance plan and it covers more than just defects. After working in the electronics service industry, I have had experience with a lot of different extended warranty plans from a variety of providers and Best Buy has one of the best if not number 1 plan. Their premium plan covers annual maintainence where they will not only clean your sensor but the clean the whole thing and go through it with a fine tooth comb. They replace any parts that are showing wear, they regrease any moving parts if they need it.... It's almost like getting back a new camera. Cleanings alone at any reputable camera shop will be $80 at the minimum and they only clean the sensor. And even though this camera has a dust reduction system, it is just that... a dust reduction system. It does not remove the dust from the camera just vibrates the sensor so hopefully it falls off.</p>

<p>Also, all of the work is done by one company. Other retailers send their equipment out to 3rd party service centers who may not all have the same level of commitment to the original consumer as the store who sold the product. </p>

<p>Again, service contracts are not insurance plans, even if they cover accidental damage, they do not cover <em>anything</em> that can happen to it. For example, a total loss or a theft is not covered. For this reason, I still recommend some sort of insurance plan from another provider.</p>

<p>In four years, one of three things could happend to you camera that would incur costs of more than $375. It could be stolen, destroyed, or have a component failure. Insurance will cover you against the first two while your extended warranty should cover the second two (at least in theory). My insurance runs about $1.75 for every hundred bucks, so 4 years of insurance on a 1000 dollar camera would be 70 dollars, with the off chance that something would break. Of course, if something did break, I'd be out a couple hundred dollars, making your investment a pretty good deal (if no one stole it in the mean time). As for whether or not something breaks... well... that's a tough question. I really abuse my gear and I wish I had purchased an extended warranty on several items (including a 600L that needs to go in for "routine" service)... however, many other items have been just fine. </p>

<p>Most of the time, I pass on the extended warranty just becuase most of these shyster companies don't seem to honor it. That being said, I have cashed a couple of extended warranties at best buy and all have worked out well for me. Tough call. </p>

<p>As a general bit of financial advice, insure for the low probability, high impact events. Ie house burning down, car crash insurance to cover big medical bills, etc.<br>

For small impact events it is better to self insure. That is, don't insure for accidental breakage of a plate, but maybe all household contents for theft.<br>

Applying this principle, you might not want to insure a single camera, but you might want to insure all of your equipment against loss. Also if you are wealthy, it is better to self insure.</p>

 

<p>My case is kind of unique, but here is why I bought my rebel xt this past spring:<br>

Fort off it was $200 for the camera with the kit lens, and with the 3 year Kits Camera Accidental damage warranty the total came out to about $290 with tax. Here's the deal though, if my camera is damaged beyond repair, they have to replace it. The kicker being, I've most likely bought one of the last new Rebel XT's in existense still being sold at Kits, so the only replacement they could give me if my camera is unrepairable is the lowest level canoin dslr they currently have whenever it happens. So let's say my camera gives out in a year, then I'll probably have a more than capable xti on my hands. Say I last 2-3 years, then I'm probably guaranteed either an xs/xsi or other depending on what's available</p>