Is mobile phone insurance worth it?

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These days there’s an insurance product for just about everything. Health, cars, homes, pets… then there’s weird stuff like alien abduction insurance and falling satellite insurance (seriously, look it up). Compared to those, mobile phone insurance is pretty normal, but as it’s not as commonplace as health insurance and pet insurance, you might be wondering what it entails and whether or not it’s worth shelling out for.

Let’s find out.

What is mobile phone insurance?

Mobile phone insurance is a financial safety net should your phone get stolen, damaged or lost. Most policies will cover the cost of replacing or repairing your phone, which, given most new flagship phones range from $1,000 to upwards of $2,000, can offer a lot of peace of mind.

Some insurance providers will allow you to bundle your mobile phone insurance (along with insurance for other portable valuables, like jewellery, cameras, tablets and laptops) with your home and contents insurance for an additional amount on top of your annual premium. This is usually referred to as portable valuables insurance, portable items insurance, or portable contents insurance.

How does mobile phone insurance work?

It works much the same as every other insurance product. You pay a fee (usually monthly or yearly), and if your phone gets lost, stolen or damaged while you’re covered, you’ll pay an excess and your insurer will pay to replace or repair it.

It’s important to note that not every mobile phone insurance policy covers the same thing. Some may cover theft, some may not. Others might cover you for a replacement screen if yours gets cracked, while others may not. Be sure to read the Product Disclosure Statement (PDS) before purchasing so you know exactly what you’ll be covered for. We also recommend checking the excess payment, as you will need to pay something upfront once your claim has been approved. Excess for mobile phones tends to range between $100 and $300.

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Insurance vs. Warranty
You might be wondering why you’d even consider getting mobile phone insurance since your device almost certainly came with a warranty. The thing is, they cover different things for different periods of time. Put simply, a warranty covers repairs or replacements during a certain period of time (usually only one or two years, unless extended) due to a manufacturing fault or electrical or mechanical malfunction, while insurance covers repairs or replacements due to something outside the manufacturer’s control (i.e. your use of it), such as damage, theft or other loss for the life of your policy.

How much does mobile phone insurance cost?

Insurance premiums vary based on a number of factors. For mobile phone insurance, those factors usually include the make, model and age of your phone, the excess payment, whether or not you require worldwide cover, and whether or not you want to include coverage for theft or specific types of damage including cracked screens or water damage.

Typically, prices range from less than $10 per month to around $20 per month, though if you opt to cover your device with portable contents insurance, you’ll pay for that cover along with your usual home and contents insurance, and the cost will differ depending on what and how many personal effects you have covered.

How do I make a claim?

So, you’ve just accidentally dropped your phone off your apartment balcony. Or you’ve had your bag stolen on a night out. Whatever it was, you’re now without your phone, and you’re panicking.

Making a claim on your mobile phone insurance is as simple as logging into your insurer’s site and making a claim online or just giving them a call. Just like if you had a car accident or damage to your home, you’ll need to provide evidence of ownership (like a purchase receipt or bank statement), photos (in the event of damage) and, in the event of theft, a police report.

Is it worth it?

As is the case with just about every insurance product, essentially what you’re paying for is peace of mind, and it’s up to you whether or not you’re happy to pay $15 (or so) per month for that peace of mind. Chances are you won’t need to make a claim at all, but on the off chance that you do, it can be a huge relief to know you only have to pay a small excess rather than thousands of dollars for a brand-new device.

Alternatively, you can always DIY it and put a little money aside every month in an emergency fund for moments just like these.

Georgia Dixon
Written by
Georgia Dixon
Georgia Dixon has 10 years of experience writing about all things tech, entertainment and lifestyle. She has bylines on Reviews.org, 7NEWS, Stuff.co.nz, in TechLife magazine and more. In 2023 she won Best News Writer at the Consensus IT Awards, and in 2024 she was a finalist for Best News Journalist at the Samsung IT Journalism Awards (The Lizzies). In her spare time, you'll find her playing games and daydreaming about good food, wine, and dogs.

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