Demystifying AppleCare Plus / AppleCare Plus Loss and Theft and Why It May Matter To You

What’s New With AppleCare+ And Why Should You Care?

NOTE:  This article applies to the US at this time.  Updates for other countries may be added as additional information is learned. Also, this is for iPhone/iPad/Apple Watch and does not address plans for Macs

Apple has recently made some significant and very positive changes to AppleCare+ Plans.  The details below will help you evaluate if AppleCare+ Plans are right for you.

If you are reading this, there’s a good chance you have recently purchased a shiny new iPhone/iPad/Apple Watch.  However, if you break your device, you may be one of many who don’t fully understand what the Apple Standard Warranty does or doesn't cover.

In this User Tip, I will attempt to help you understand what AppleCare+/AppleCare+ With Theft & Loss is. Also, I will explain the changes Apple has recently rolled out, when you can buy it, why you might want to buy it, and how the plans differ.

For iPhone/iPad/Apple Watch, the Standard Manufacturer Warranty is one year against manufacturing defects.  For the first 90 days you are entitled to free Apple Care Technical Support.  That means you can call Apple anytime during the first three months and get technical assistance at no cost to you. But once that 90-day period is up, should you need to call Apple Support, you will be charged for technical assistance. 

The Standard Apple Warranty is contained in this link and I encourage you to read it: 

https://www.apple.com/legal/warranty/products/ios-warranty-document-us.html

What many buyers simply don’t understand is accidental damage including scratches, cracked screens, cracked backs, dents and water intrusion issues are NOT covered by the Apple Standard New Product Warranty.  If you drop your shiny new phone, get it wet or something goes wrong because of physical damage, it will NOT be considered a warranty issue.  Every day on Apple Support Communities (ASC) a user will ask how to get their cracked, dented, scratched or water damaged iPhone/iPad/Apple Watch replaced for free under warranty.  The answer is almost always they can’t.

What happens if you damage your device and you are not covered by warranty?  Apple will offer you an Out of Warranty Replacement.  Great!  But the cost of an Out of Warranty Replacement is typically about 60% of the price of the device when it was new, even if new was three days ago.

So, sit a spell and read below to learn about the options available to you: 

What it is AppleCare+?

AppleCare+ is a plan you can buy from Apple, which is really a supplemental insurance plan to protect your cherished devices from accidents we can’t plan for or know may cripple or adversely affect using them.   I personally don’t buy a new iPhone/iPad/Apple Watch without AppleCare+.

What Does AppleCare Cover?

The basic AppleCare plan covers Accidental Damage.  Go for a swim and forget your phone in your pocket?  Covered.  Whack your Apple Watch against a metal pole shattering the crystal?  Covered.  Drop your iPad and crack its screen?  Covered.   

Note:  Apple DOES repair iPhone's, if the device can be repaired.  Apple does NOT repair an iPad.  Should your iPad become damaged, the entire device is replaced.

What About  Repair/Replacement Costs? 

Let’s compare some current prices (subject to change):

Crack your iPhone Xs Max screen without AppleCare+: $329

With AppleCare+ the same screen replacement cost is: $29 

Damage your beautiful iPad Pro 12.9 (2018) without AppleCare+:  $649. 

With AppleCare+: $49

What is AppleCare+ With Loss and Theft Protection?

For a little more money, you can add Loss and Theft Protection to your AppleCare+ Coverage.  There are few things as unsettling as losing or someone stealing your beautiful device. It happens all too often based on the number of “help me find my lost/stolen iPhone” threads we see daily on this forum.  If you add Loss and Theft Protection, you pay a nominal fee to get your device replaced as opposed to having to purchase a brand new device at full retail price. If you lose or your iPhone is stolen, you’ll pay the full price of a new iPhone.  With Loss and Theft Protection, the same phone will cost you (depending on model):  $199 - $269

How Many Times Can I Get My Device Replaced Under AppleCare+?

I’m glad you asked!  Under AppleCare+, you are entitled to two replacements at the specified replacement cost in the plan details during the two-year plan coverage.

When Should You Buy or Add AppleCare+?

If you know you want either AppleCare+ or AppleCare+ With Loss and Theft, buy it with your new device.  If you aren’t sure you want it, you have 60 days from date of purchase to add an AppleCare+ plan to your device.  Please note: If you damage your device before you purchase a plan, you will not able to add it after it’s damaged.  If you decide you want to add a plan after 60 days, you won’t be able to add it.  Either buy it with your device or put it in your device calendar to remind you when the date is approaching.

How Do You Pay For Your AppleCare+ Plan?

Here’s the Really Good News and what prompted this User Tip!  For years, if you wanted to add AppleCare+ to any Apple device, you had to make a one-time pre-paid payment and the coverage was valid for 24 months.  The plan was finite and could NOT be extended, period.  Apple has recently changed how AppleCare+ Plans can be paid for and the duration:  Including Extending the Plan Beyond 24 Months!

• This means you can now purchase a One-Time Pre-Paid Plan, then after 24 months you can switch to a monthly plan.  The plan can continue until the device is no longer supported and Apple no longer can provide parts or service for the device.   
• Or you can now purchase an AppleCare+ plan and pay for it monthly at a slightly increased monthly cost AND you can continue paying monthly until the device is no longer supported and Apple no longer can provide parts or service for the device.      
• In both scenarios, it would be expected the plan may continue for the five year period Apple typically provides support to a mobile device.

Click This Link For More Details About Continuing your AppleCare+ Coverage:

About continuing your AppleCare+ coverage for iPhone, iPad, and Apple Watch

Can I Cancel an AppleCare+ Plan After Purchase?

Yes, you can!  If you purchased the pre-paid plan, you simply call Apple Support and ask for AppleCare Plan Administration.  Apple will refund the pro-rated unused portion of the plan effective the date you terminate the plan.  The refund will be placed back on the credit card used at time of purchase.

If you choose the monthly plan and want to cancel, you again call Apple Support – AppleCare Plan Administration and your plan will be cancelled at the end of that month. 

If I Sell My Device to Another User, Can AppleCare+ Be Transferred?

What a great question!  Yes, yes you can.  AppleCare+ plans are tied to the device covered.  If you want to sell your device and offer the remaining balance of a pre-paid plan to a new buyer, all you need to do is provide them the receipt and plan details which AppleCare Plan Administration sent you when you purchased your plan. (KEEP THOSE RECEIPTS!). It is not clear if a monthly plan can be transferred, so you'd need to contact AppleCare Administration for an answer on that.

Whew! Congratulations if you made it all the way through this. I hope this has helped clarify AppleCare+ Plans for you.