Buyback insurance is a type of paid contract that allows users to return old electronics to a retailer or vendor and receive upgraded devices at a precalculated rate. Buyback insurance is designed specifically for products with shorter lifespans.
Buyback insurance was introduced in electronic and tech products to circumvent product obsolescence and decommissioning from an end-user’s perspective. Although this is generally a marketing tactic that helps ensure repeat business for retailers, buyback insurance programs can provide a cost-effective way to keep up with new technology.
In general, buyback insurance returns up to 50 percent of the value of a product to put toward upgraded technology, but this can vary depending on the customer, region, organization’s policy and nature of the product.