I had Asurion's insurance covering my phone, which I got through Verizon. It was only 5 dollars a month, so at the time it didn't seem so bad. The time came where I had to use it, so I received a replacement phone, which I had to pay 50 dollars for. I received it within 2 days of calling; everything seemed fine.
The phone I received, however, was defective - it would shut off randomly.
Asurion said they would replace it, but mentioned right before they had finished the claim that if they found any damages on the phone that they would charge me up to $300 dollars. Fearing a charge that would have been more than I initially paid for the original phone, I told them about a small mark/dent that was on the plastic case covering the battery. It was there because I had to remove and replace the battery several times in order to get the phone working after it shut off, because it was defective. I attached a photo of the issue to this complaint (Not of the entire phone, just a super close up of the plastic case covering the battery with the dent in it)
They told me that because the phone was damaged, they couldn't take it back and I would have to pay another 50 dollars in order to get a new phone. I told them that was ridiculous, and that I shouldn't have to pay another $50 for a tiny mark on the back of a defective phone that they sent me, which was already defective. I told them I had already paid 5 dollars a month for over two years (120+ dollars) plus the 50 dollars I paid for the original claim and that they never really resolved because they sent me a defective phone. They told me there was nothing I could do unless I wanted to pay another 50 dollars.
So after that call, I was still upset about it so I called them back a few days later to cancel my service and leave a complaint. They already had a CEO complaint voicemail set up, in which you don't talk to anybody and nobody calls you back - you're pretty much leaving a message that'll probably get deleted.
The fact that they have a complaint box ready like that shows they know they're a big scam that'll steal at least $120 from you every 2 years, and they know they'll get away with it because in the end people continue to blindly purchase their insurance, while the CEO's bask in our money while ignoring their complaint voice mail box.
I've read several reports now that have had a similar problem as mine or worse. I think it's time that Asurion felt the effect of our society's powerful "word of mouth" function. Tell people not to get Asurion's phone insurance (which is offered through Verizon, Cingular and other major phone companies) and if you already have it, cancel it.