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The two-year contract lets you buy an expensive phone (say, the $649 iPhone 6) for a seemingly inexpensive, subsidized price ($199). Naturally, however, the cost of the phone is baked into your monthly fee, and by the time two years have passed, you've paid the full price for the device.
By agreeing to a contract, customers can access a new phone at a lower upfront cost and with no more to pay, although the contract does mean said customers will be tied to Verizon for a two-year minimum.
While Verizon did away with two-year contracts for new customers back in August 2015, existing customers were able to re-purchase two-year contracts when upgrading their smartphones. That option is no longer available, and customers will be transitioned to device payment plans as their contracts expire.
After researching Verizon's policy on the matter, we've discovered that canceling your contract early results in Early Termination Fees of between $175 and $350, depending on the type of agreement you have signed.
Verizon hasn't quite killed off two-year contracts just yet. The nation's largest wireless carrier stopped offering two-year contracts to new customers earlier this month. But Verizon clarified last week that if you are currently under contract, you can renew your two-year deal with Verizon when you upgrade your phone.
While Verizon did away with two-year contracts for new customers back in August 2015, existing customers were able to re-purchase two-year contracts when upgrading their smartphones. That option is no longer available, and customers will be transitioned to device payment plans as their contracts expire.
Let's start with traditional contracts, or what Verizon refers to as the More Everything plans. Verizon discounts smartphone prices in exchange for your commitment to remain on the network for two years. For example, with a two-year contract, a phone with a full retail price of $600 will only cost you $200.
Once you complete your two-year contract your plan becomes month-to-month and can be canceled without an Early Termination Fee.
The two-year contract lets you buy an expensive phone (say, the $649 iPhone 6) for a seemingly inexpensive, subsidized price ($199). Naturally, however, the cost of the phone is baked into your monthly fee, and by the time two years have passed, you've paid the full price for the device.
The nation's largest wireless carrier stopped offering two-year contracts to new customers earlier this month. But Verizon clarified last week that if you are currently under contract, you can renew your two-year deal with Verizon when you upgrade your phone.
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