cpw insurance, cant be right can it

[welshboy]

The lifline complete insurance from cpw allows you to cancel your airtime contract after like 3months (on a 12month contract) or 6 months on a 18 month contract. how does this work? surely the network cant make any money off this, whats the catch?

 

[Dolph]

The network still make their money (or most of it) using this system, as the insurance pays the early cancellation charge (equivilent to the remaining months line rental).

 

[hybrid]

hmm, yeah i think this is right tbh.

I once rang up CPW (my local shop) asked about cancelling it and the bloke asked if it was insured. To which i said yes. He then went onto saying if you fetch everything in we can use your insurance to cancel the contract and stuff.

I didnt go ahead as i just upgraded my handset.

But that was about 9 months of my 12 month contract like.

 

[welshboy]

what about cpw insurance, how do they make money from that?

that means i could in theory change my phone/contract every 3months

 

[jhmaeng]

Well, I guess they will simply refuse to insure you at some point, probably after something like 2-3 claims under this clause.

Plus, you have to give your old phone back when you cancel the contract under this clause, and you can't port your number to a different contract so you will end up with a new number each time.

 

[welshboy]

quite good though, might have to do it sometime, although im just waiting on my k800 upgrade from orange now so wont be for 18months.