Freedom Mobile's phone protection plan is removing coverage for lost or stolen phones. In exchange, they are reducing the monthly fee by $1 (down to $9). This change was first noticed on Reddit by user Alphalee and you can read messages from upset customers (obviously).

This change will come into effect on August 2nd, 2018. Repair service is now listed at $99 (was unlimited in the past). It looks like this is an attempt to limit fraud and reduce insurance costs for Freedom Mobile. Their coverage seems to be underwritten by Asurion (same provider used by Telus, Bell, Virgin Mobile and Koodo.

The existing Mobile Freedom coverage still protect's devices from accidental damage (such as a broken screen or liquid damage).

Could Google become a Cyber Insurance Underwritter?

November 14, 2016Edward Kiledjian

Image by Pictures of Money used under Creative Commons License

Cyber-Insurance is the next great frontier for insurers as more and more companies buy protection in the age of massive and regular cyber-attacks.

“More than 60 insurance carriers now offer stand-alone cyber insurance policies”

— Dr. Robert Hartwig, president of the I.I.I. and an economist

PwC suggests the global cyber insurance market could grow to at least $7.5 billion in annual premiums by the end of the decade. PwC also suggests insurers need to move quickly to innovate before a disruptor such as Google enters the market.

When looking at CyberInsurance, a solid provider would have to cover the basic of an insurance policy like liability but would also have to add additional cyber specific support like:

Crisis Management - Covers the cost of managing the incident including customer notification, credit monitoring and implementation of a public relations campaign to rebuild the organizations reputation. Additionally they would help manage the entire response from detection to resolution through a breach coach and agreements with other cyber support functions like (call centers, mailer companies, forensic specialists, cyber extortion negotiators, etc)
Cyber Extortion - Covers the payment to resolve a cyber blackmail situation and provides the technical expertise to help track down the blackmailers

But Google?

We all know Google is the sultan of search and has an unmatched view of the internet as a whole. It can see into dark crevasses of the internet no one else can.

Cash - Google generates more cash per quarter than most insurers (e.g. Chubb, AIG, Travelers, etc). It therefore has enough "cash" to payout customers and support them if a policy is executed.
Profitable - Under the new CFO, Google is working on profitability by killing many moonshots and concentrating on activities that can provide interesting returns. Obviously insurance is a numbers gave and Google can make it profitable.
Data Science - Insurance has always been a math problem and no one does math better than Google
Visibility - Three of the key metrics in the risk equation are likelihood, Impact and velocity. Most insurers make best guess estimates based on past experience with some modification for future changes. Google sees the entire attack surface of the Internet and can make very educated guesses about who is likely to be targeted, when and how.
Support - More important that money, most victims look to their cyber-insurer for support during the incident. They need help understanding who is doing it (attribution), how they are doing it (reverse engineering), what else they could have compromised (Indicators of Compromise) and how to clean it up. Google has the technical experts to support companies through the entire process. Of particular interest is the reverse engineering and attribution pieces that only a handful of companies can do really well.
Customers - Google has a tone of consumer products and has incredible name brand recognition. Google is once again the #2 most valuable brand in the world (link).

Maybe Google

As reported in the NY Times, Sony's life insurance business is what is helping it survive.

“Life insurance has been its biggest moneymaker over the last decade, earning the company 933 billion yen ($9.07 billion) in operating profit in the 10 years that ended in March.”

So Google has the motive (a renewed push for profitability) and the capability (cash and technical). The only unknown is do they have the desire? Only time will tell but I think this is something they will branch out into sooner or later

Save money when renting a car

February 14, 2014TravellingEdward Kiledjian

Image by  aldenjewell under Creative Commons License — Image by aldenjewell under Creative Commons License

Renting a car while travelling often feels like getting a endoscopy done. It always feels like you get quoted one rate (in the ad) and end up paying 2 or 3 times as much. but why? Why does it cost so much and how can you save money on your next rental?

The catch

I used Avis.com and checked the price of a 7 day rental at LAX in July. $974.95 for the base rental but add all of the options and you end up at $1677.02. This is how they get you. They slowly convince you to add options which eat away at your credit card balance.

For this reservation, Avis is kindly offering these option:

Loss Damage Waiver - $29.99 per day
Personal Accident Insurance - $4 per day
Personal Effects Protection - $2.95 per day
Additional Liability Insurance - $14.80 per day
Roadside Assistance - $6.49 per day

So far, we are at almost $400 for a 1 week rental but the fun doesn't stop there. Then they slap on the mandatory additional fees:

Concession Recovery Fee (11.11%)- $153.46
Customer Facility Charge - $10.00
Tourism Assessment Fee (2.6%) - $25.35
All taxes - $105

This adds another $294.46 to the rental. So we are ~ $700 in additional fees and taxes.

How to save money when renting a car

Shop early

Nothing beats elbow grease and you will have to work if you want to save money. Once you've locked up your travel dates, go on the major travel reservation sites (hotwire, expedia, travelocity, etc) and compare the different pricing options. If you are a member of an association (CAA, AAA, Costco, etc) check through them what kind of deals they offer.

Some deals are on price while others may bundle additional amenities (which still help reduce your overall price) like GPS rental, baby seat, free upgrade ,etc).

Avoid buying their insurance

Before you make your car rental reservation, call your car insurance broker and ask if your existing policy covers rental cars. IF you are travelling to another country, make sure your own policy covered you in foreign lands.

As a Canadian, I have a free option that covers me in the US and on rental cars. I just had to ask for it.

Make sure your insurance covers the full value of the car and that it also covers loss of use. If you damage a rental car, you will be charged for the repair plus any rental income the rental company lost because the car was in the shop.

When in doubt, its best to buy the rental company insurance (LDW).

The second type of insurance they are trying to sell is personal effect protection which covers your personal items stolen from the rental car. Typically your homeowner insurance offers coverage for this but you may want to double check. When I travel, I never leave valuable items in the car so I always skip this one.

Also check with your credit card issuer. Many credit cards offer complimentary LDW coverage if the entire rental amount was charged to it. The claim process is a little bit longer (than the rental company policy) but the money you save will be well worth the effort.

The Airport convenience fee

Often times you are charged concession recovery fees for airport pickups. In the above case it is 11.11% or about $150. when possible, try to rent your car off the airport limits.The extra couple of dollars in cab fair will be more than made up with the extra fees you are saving.

Be a snappy tourist

Anytime you are renting a car, you are responsible for it the minute you drive off the lot. If there is existing damage on the car you didn't notice, you will get stuck with the bill. The moral of the story is be anal retentive and examine the car with a fine tooth comb. Look for dings, scratches or discolorations. Have the agent add everything to your rental agreement and initial it with his name.

When I travel I always have a flashlight and use it to check tires, wheel well, undercarriage, everywhere. Do the inspection in a brightly lit location and take your time. Don't feel pressured.

Also check the inside. Is the interior in good condition. Is anything ripped, damaged or seem excessively used? Does it smell (if it smells bad or like smoke) you may end up being charged extra for cleaning. Look everywhere including the trunk. Is the spare tire there. A friend was charged a couple of hundred dollars because the spare was missing.

Anytime you find something, take a picture of it with your camera and make sure to capture some of the surroundings so its clear the pics were taken at the time of rental. These may be needed if there is a dispute.

Avoid accessories

Avoid buying or renting accessories from the rental companies, they are always excessively over-priced. Most companies charge $15 a day for a GPS when I can buy a GPS app on my iPhone for $40. They sell cheap low amperage USB lighter plugs for $15-20 (worth $5 in most electronics stores).

On a recent trip to Disney in Florida, they wanted me to rent a speedpass for the toll. I calculated that I spent about $14 on tolls and the device rental would have cost $55 plus the tolls.

Conclusion

For short trips, I try to avoid renting cars all together. When I don't have the choice, I shop, inspect and play hardball. Hopefully these tips will save you some headaches and some money on your next trip.

Freedom Mobile removes insurance coverage for lost or stolen phones