Mobile Insurance in Australia: Smartphones are a costly investment for many people, and they are often used every day. Tell me the best solution to fix your broken one. I examine possible insurance options for smartphones. If you are planning to buy a smartphone from the start or to lock into a contract (a phone plan), you may still need a costly device. When comparing the usage of mobile phones and smartphones in everyday life, the possibility that a phone could become broken or stolen seems quite obvious. Tell me the best way to protect my mobile against this type of risk. The options available are numerous, and this section details these.
Mobile Insurance in Australia
Everyone is looking for the best insurance policy. Fortunately, the right insurance can help you reduce your premiums and get more for your money. It doesn’t matter whether you are a driver, a passenger, or a driver in a car with another driver. The right insurance can help protect you and your passengers from the risks associated with driving in Australia. If you buy your mobile phone insurance from an Australian website, you can rest assured that you’re getting top-notch coverage at a great price. The back seats of taxis, tiled floors, and toilets are all-natural enemies of mobile phones. There are three main options for mobile phone insurance in Australia, each with its pros and cons. These are:
- Purchasing a ‘portable contents’ add-on to your home and contents insurance policy
- Getting insurance through your mobile phone provider
- Buying a standalone policy.
What is smartphone insurance?
Mobile phone insurance is a type of insurance policy that is purchased with a new mobile phone. In most cases, people purchase these insurance policies with expensive smartphones, though they may be available for any type of cell phone through the issuing company. Similar to other types of insurance policies, mobile phone insurance will typically carry restrictions such as a deductible, a certain amount of time over which the policy is active, restrictions on the types of claims that can be made, and limits on retail value replacement costs. When purchasing an expensive phone, some individuals find that adding insurance offers extra peace of mind.
How mobile phone insurance works
Mobile phone insurance can provide you with:
- Reimbursement if your phone is lost or stolen, and then someone uses it to make expensive calls
- Cover for renting or buying a new phone if yours is lost, stolen, or broken overseas
- Cover for phone accessories
- Options for repairs, replacement with a new phone, or replacement with a refurbished old phone of the same type
What will phone insurance cover?
As mobile phones are one of the categories in our Portable Contents Cover options, if you select insurance under this category, we will cover your phone for any accidental damage and accidental loss (including theft) during the period of insurance.
Damage to the glass component of your mobile phone, such as the screen, is not covered unless the Accidental Damage option has been added to your policy and the damage occurs at your property address.
Where are you covered by phone insurance?
With Portable Contents, you are covered:
- Anywhere in Australia (including at your property address) and New Zealand; and
- For up to 90 consecutive days at a time anywhere else in the world
What to consider when comparing phone insurance
- You are only able to sign up for a plan with your current mobile phone provider. You cannot shop around without being willing to change providers.
- Consider the total yearly cost of premiums as well as the excesses and other fees when determining a value for money. Compare this to the total cost of your device.
- If your phone is damaged or breaks while it’s still under warranty, you might not benefit from mobile insurance. Think about the warranty period (typically two years) and how often you generally replace your phone.
- You can cancel mobile phone insurance at any time but will not usually be able to claim any refunds.
What is Portable Contents Cover?
Portable Contents Cover is an optional upgrade that can be made to your policy to cover items away from home. This cover can include jewelry, bikes, watches, laptops, and mobile phones. Portable Contents can be added for an additional premium if:
- You have contents covered; and
- The property address is the place of your permanent residence; and
- We agree to provide the Portable Contents option.
Portable Contents Cover is not available for holiday homes.
You can choose between Portable Contents Specified Portable Contents or both. You may wish to choose one or multiple of the Categories listed below for the Portable Contents Cover. Portable Contents Cover allows you to select the amount of cover you need (what we call a ‘Category limit’).
The categories are:
- Mobile phones
- Jewelry and watches – not including smartwatches
- Portable electronic devices – not including mobile phones
- Bicycles – including bicycle equipment and accessories
- Recreational, hobby items or clothing – includes musical instruments, camping gear, sporting equipment, and accessories that are normally carried or worn, such as handbags and sunglasses
- Medical or health items – not including hearing implants
- Collections
Contents insurance can cover your phone
Adding a phone to contents insurance
If you are thinking about taking out a contents-only or a combined home and contents insurance policy, or already have one, then adding your mobile phone to it can be a cost-effective way of insuring it against theft, damage, or other loss. However, it is important to note that these policies will only cover your gadget in certain situations and might not protect your phone when you need it most.
- Contents insurance policies only pay out in the event of specific types of damage, like impact or fire, and disasters, like flooding or storms. You might not be able to claim for events like dropped phones or water damage.
- By default, most contents insurance policies will not cover possessions outside of your home. You should ensure that your policy specifies portable contents cover, and check the applicable conditions and limits.
- Contents insurance policies may specify certain limits for items like portable possessions or electronics. Depending on your policy and phone, it may not cover the entire cost of repair or replacement.
- Making contents, or combined home and contents, an insurance claim may be more difficult than claiming on a dedicated phone insurance plan, and the excess may be impractically high for claiming just one item like a phone.
- Your premiums may increase if you make claims on contents insurance policies. If you have a high sum insured then these premium increases may not be worth the money saved by claiming a payout for your phone.
- You may not be able to seamlessly and immediately add a new item to your policy. Sometimes it is only possible to adjust a policy at renewal time, or there might be additional costs for doing so.
Taking out portable contents insurance for a mobile phone
Several insurers will offer individual portable contents policies for mobile phones, laptops, jewelry, designer accessories, and other valuables you take with you outside your home.
Most portable contents policies will offer two options:
- Specified items. This involves listing specific items like mobile phones, tablets, wedding rings, and other portable valuables. If you have a newer or more valuable smartphone or only want insurance cover for your phone and nothing else, then specified-item cover may be more suitable for your needs. If you want a broader level of protection that encompasses more than just your phone, a general cover may be more suitable for your needs.
- General cover. This type of policy covers non-specified items, such as whatever was in a handbag when was stolen, including mobile phones and anything else.
Phone company insurance plans
All the major mobile providers in Australia offer phone insurance policies. Compare some of the different policies below:
Optus
Optus Device Protect covers mobile phones and tablets. If your device is stolen, lost, accidentally damaged, or suffers an electronic breakdown or failure that is not covered by warranty, it will be repaired or replaced. This policy covers you anywhere in the world.
Device Protect
| How much it costs | What it covers | What is not covered | Other costs | Maximum cover |
|---|---|---|---|---|
| $14 per month | Theft, loss, accidental damage, electronic breakdown, or failure | Scratches, fire, loss of data, intentional damage, wear and tear | $100 excess for damage claims, $200 excess for loss and theft claims | The limit is $2,000, including up to $600 for reimbursement of unauthorized calls |
Telstra
Telstra offers two smartphone insurance policies: StayConnected and StayConnected Plus.
StayConnected
| How much it costs | What it covers | What is not covered | Conditions and other costs | Maximum cover |
|---|---|---|---|---|
| $13 per month | Replacement or exchange of your device for any valid reason | Those whose bills are not paid up to date | $100 service fee for non-smartphones, $140 fee for smartphones, $180 fee for tablets and large smartphones | No limits apply |
StayConnected Plus
| How much it costs | What it covers | What is not covered | Conditions and other costs | Limits and additional benefits |
|---|---|---|---|---|
| $15 per month | You can get your device repaired, swapped, or replaced up to two times every 12 months for a service | Those whose bills are not paid up to date | $140 service fee for non-smartphones, $190 fee for smartphones, and $220 fee for large smartphones and tablets | No limits apply |
Vodafone
Vodafone Keep Talking (standard), and Keep Talking Plus (premium) offer worldwide coverage against damage, loss, and theft.
Keep Talking
| How much it costs | What it covers | What is not covered | Other costs | Maximum cover |
|---|---|---|---|---|
| $10 per month | Repair or replacement of an accidentally damaged device | Accessories, reimbursement for unauthorized calls, or anything other than accidental damage to your device.Only available for devices worth $2,000 or less. | $150 excess applies | Up to $2,000 for repairs |
Keep Talking Plus
| How much it costs | What it covers | What is not covered | Other costs | Maximum cover |
|---|---|---|---|---|
| $15 per month | Repair or replacement in the event of damage, loss, or theft | More than 2 claims per year, any loss resulting from viruses, failing to read the instructions, unapproved accessories or software, or misplacing your device. This policy must be purchased within 30 days of buying your new device, while it’s still in perfect condition. | $50 excess for repair, $75 for refurbished replacement, and $125 for a new replacement of phones worth less than $600$125, $200 and $300 excess for the same reasons for phones worth more than $600 | Up to $2,000 for repairs or replacement, up to $500 reimbursement for unauthorized calls, and up to $300 for accessories and $300 for replacement hire or purchase outside of Australia |
Buying a standalone ‘Single Item Insurance’ policy.
A few big names such as NRMA and Bupa offer single-item insurance which can cover most valuable items, including your phone.
These policies are generally bought online and designed to cover you for specific items. All you need to do is go to their website, answer a few basic questions about your phone and its value, get your quote, and pay.
While policies differ from one insurer to the next, you’ll generally find they’ll cover you if:
- Accidental damage to your phone
- Someone steals your phone
- Protection outside of your home
Just make sure your phone was purchased from a registered Australian business and that you don’t leave your phone unattended, or your claim could be denied.
What difference between specified and unspecified Portable Contents Covers
Specified items are those you have specifically notified us about. For example, if you want to have a Category limit that is more than the amount we accept, we will inform you of this, and then you can tell us about the items and the amount you want them to be covered for. If we agree to cover them, these items will be listed on your Certificate of Insurance as Specified Portable Contents. Unspecified items are items that you have not informed us about but which are classified under a Portable Contents Category and do not exceed the Category limit amount we accept.
Australia Post can provide Portable Contents Cover as an optional extra for Contents Insurance. With Portable Contents Cover, you can choose one, several, or all categories to add to your Contents Insurance policy. One of these categories is for mobile phones, providing insurance for your mobile phone. Dstv Ethiopia Packages and Prices in 2022 – DSTV Ethiopia
What does phone insurance cover?
Phone insurance from mobile providers typically covers almost all forms of accidental damage, theft, loss, and destruction. Portable contents insurance, or adding a phone plan to an existing contents insurance policy, will generally mean it is covered against a narrower range of events specific to that policy.
Is phone insurance worth it?
Phone insurance from mobile providers typically covers almost all forms of accidental damage, theft, loss, and destruction. Portable contents insurance, or adding a phone plan to an existing contents insurance policy, will generally mean it is covered against a narrower range of events specific to that policy.
Can you add insurance on your phone?
Yes, many insurance providers will allow you to insure a used cellphone. In some cases, however, you may need to go through some additional steps. For instance, AppleCare+ customers can insure their iPhones within 60 days of purchase.
Why do I need insurance for my phone?
Phone Insurance covers scenarios that a warranty does not. Although a warranty is your first line of defense against phone issues and damage, it can only protect you to a certain degree, such as manufacturing defects or hardware issues. Fortunately, a good insurance plan is there to cover the things a warranty can’t.
Does phone insurance cover a cracked screen?
Phone insurance from mobile providers will cover a cracked screen, and you may have the option to either get it repaired or get a replacement phone. Contents insurance policies may or may not cover a cracked screen depending on how it happened. Consider the excesses you will need to pay to get it fixed and think about using a screen protector to avoid this happening.