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cpw insurance, cant be right can it

Discussion in 'Mobile Phones & Tablets' started by welshboy, 30 Jul 2006.

  1. welshboy

    Wise Guy

    Joined: 17 Jan 2006

    Posts: 1,337

    Location: North West

    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?
     
  2. Dolph

    Man of Honour

    Joined: 17 Oct 2002

    Posts: 49,279

    Location: Plymouth

    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).
     
  3. hybrid

    Wise Guy

    Joined: 18 Nov 2003

    Posts: 1,312

    Location: Newcastle

    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.
     
  4. welshboy

    Wise Guy

    Joined: 17 Jan 2006

    Posts: 1,337

    Location: North West

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

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

    Wise Guy

    Joined: 6 May 2004

    Posts: 2,060

    Location: London, UK

    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.
     
  6. welshboy

    Wise Guy

    Joined: 17 Jan 2006

    Posts: 1,337

    Location: North West

    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.