There’s been a lot of chatter about which is better: DJI Care Refresh or State Farm ‘Drone Insurance’. So what is the correct answer to this question?
First off, we need to make it clear that DJI Care Refresh and State Farm ‘Drone Insurance’ are not the same thing, so this isn’t an apples to apples comparison.
Next, although we keep calling it ‘Drone Insurance’, State Farm’s policy is nothing more than ‘Personal Articles Policy’. It could just as easily cover your golf clubs or coin collection.
Coverage Overlaps, Isn’t Identical
This is the biggest distinction between the two coverages. In certain situations they may be covering the same risk, but not all of the risks they cover are the same…..nor is the remedy. That sounds confusing, so here are two scenarios to help clear it up:
Scenario 1: Crashing Your Drone
You’re flying your Mavic Pro in Sport Mode at a high speed and you lose control and it smashes into a wall. What happens next? It depends on the coverage.
If you have DJI Care Refresh, this incident could fall under the supported scenarios of ‘Operator Error’ or ‘Collision’.
If the crash was a result of ‘Signal Interference’ that is covered as well.
With DJI Care Refresh, DJI would provide you with either a new or refurbished/repaired drone. If it is your first incident you would pay a fee. If it is your second incident you would pay a higher fee. The fee depends on your drone. For the Mavic Pro the first time replacement is US $79, and the second time is US $129. After two uses your DJI Care Refresh is done.
So what would have happened in this crash under the State Farm coverage?
Since it is a Personal Articles Policy, based on the purchase price of the article, State Farm would issue give you a cheque to replace your damaged article. No additional fee. But now, because the original article is toast, the coverage is too. You will have to purchase new coverage for the new article.
Also, because State Farm’s insurance is logged into a national underwriting database, your claims history is permanent and accessible any time you try to purchase insurance in the future. As we all know, our claims history usually determines our future cost of insurance…make too many claims and your future cost of insurance could be higher, or worse, declined.
Scenario 2: You damage your drone on vacation
Let’s say you purchased your drone in the USA. You then take your drone to the UK and accidentally lose it into the ocean while filming the White Cliffs of Dover.
If you have DJI Care Refresh, you should be aware that it is only valid within one coverage region. Currently those coverage regions are:
- United States
- EU Countries
- United Kingdom
- Hong Kong and Mainland China.
In this scenario, the DJI Care Refresh purchased in the US would only be valid in the US. If you had purchased DJI Care Refresh to cover your drone in the UK, then your unit could be replaced, for the scheduled 1st or 2nd replacement fee.
It’s important to note that this scenario is further complicated by what caused the crash or failure into the sea. If you are still under warranty with DJI and the reason for the drone failure was a fault with the drone, that may be covered by DJI’s own After-Sales Warranty. But that is a big “if”.
If you have State Farm’s coverage, and you travel to another country, you can breathe easy because their coverage applies anywhere in the world.
There is one notable exclusions, however, on State Farm’s PAP coverage. Coverage is not available for purchase in California. In order to purchase a policy you must do it out of state.
These aren’t the only differences between the two types of coverage, but what we’re trying to do is to highlight how they can be similar and different at the same time.
Realistically a case can be made that some drone owners would benefit from both types of coverage.
Between DJI Care Refresh and State Farm, the latter is simpler to understand and explain. If you are going to purchase DJI Care Refresh, it’s important to understand exactly what you’re buying and where/how you are covered.