Okay, I’m on hold while the phone repair people work out how much it’ll cost to get
this thing de-smashed.
I’ve got as long at it takes to get from..
*you are ninth in the queue*
.. to speaking with a human being, to answer your questions about mobile phone insurance.
Let’s go.
What is mobile phone insurance?
Good question. It’s where you pay a small, regular fee to make sure that if
anything terrible should happen to your brand new, beautiful, expensive Distraction Rectangle
you’ll be covered.
Most major telcos sell them for around fifteen bucks a month, which, over the course of a
two year contract comes to $360.
Thank you.
But that doesn’t include any “excess” you’ll have to pay on a claim, which we’ll
get to later!
*You are now third in the queue*
If we have time!
How Do I Get Mobile Phone Insurance?
Right, it’s mostly sold in store when you sign up for a mobile, and this can be a problem.
Because this queue here is not the best environment to work out what you’re actually buying,
much less
read the “product disclosure statement”.
Which you should, because the consumer guarantees in the Consumer Law - like being fit for purpose
- don’t apply to insurance.
Nor do the “unfair contract” provisions.
Something consumer group ACANN says leads to poor outcomes for consumers.
Sorry, just one moment.
*You are now 20th in the cue*
What?!
What are some common exclusions?
Well. Mobile phone insurance often doesn’t cover damage from “wear and tear”.
They tend to exclude damage by fire, and anything that happens to the phone when
your normal sim isn’t in it - like you might do when you’re overseas.
And here’s a big one.
If you’re getting phone insurance cos you’re worried about losing your mobile or having
it stolen, then you may be interested to learn that Vodafone and Virgin’s policies don’t
cover you if you...…
….left it unsecured and/or unattended in a public place OR a place to which the public
has access at the time of the incident…
Which really does seem to exclude the overwhelming majority of scenarios where you’d lose a
device.
Unless of course you’re in the habit of losing your phone in your own house.
Well, Lizzie, have you checked the silk tapestry room?
Of course, Philip! There’s nothing there but silk tapestries!
Are There Any Other Options?
A few.
Telstra and Apple both offer products that aren’t your classic insurance
but function in similar ways.
AppleCare costs between $189 and $299 for two years cover.
In that time, they’ll repair or replace your phone for two incidents of accidental
damage, but not if it’s lost or stolen.
Each time there’s a Service Fee of $45 for a damaged screen and $145 for any other damage.
Now for $15 a month, Telstra will replace your phone up to two times every year,
no questions asked.
Again, this isn’t an insurance product, it’s a handset replacement service.
And each of those replacements will incur a service fee of about two hundred and twenty
bucks and the phone you get could be secondhand.
Ooh!
*You are...second...in the queue*
Quick!
So should I buy mobile phone insurance?
Like all insurance, it depends on how likely it is that you’re gonna need to make a claim.
If you’re a person that's never dropped their phone in the toilet twice in one week
- well how nice it must be being so perfect.
Maybe mobile phone insurance isn’t for you.
If you’re like Freddy Hammers For Fists here, and go through a lot of phones…
Easy….eaaaaaasy…..
Gaaaaaaah.
Well...first, look at how much it costs to fix your phone without insurance.
This will depend entirely on what kind of phone you have, and what misfortune befalls it.
For example, replacing an iPhone X screen costs
over four hundred bucks.
Hey was that my new iPhone?
No.
You’ve also got to look at what excesses you have to pay upfront for every claim, then
add that to what you’ll pay in premiums over the life of the policy.
So, it might cost you $125 every time you get your phone repaired, but you’re also
paying $360 bucks over the life of the policy - so that’s almost $500 every time you get it replaced.
In that case, you’d be wanting to smash your phone a fair bit to make it worth your while.
Oh!
Someone dropped their iPhone here
I’ll just…
Hey wait that’s my..phone.
Awww! Freddy Hammers For Fists!
Point is, it may turn out that, after you
add all those numbers up and take all the exclusions into account - you decide that
it’s just not worth it.
Or you may decide that it’s something you desperately need.
Either way do your research carefully.
Cos ACCAN says mobile insurance products “rely” on consumer confusion about the level of cover.
Anything Else?
Yes!
If you already have home and contents insurance you may be able to add your mobile phone to it.
Now, not all insurers offer this but it’s worth asking.
It could cost you nothing, or still be a lot cheaper.
But!
It’s really important that you make sure that your phone is covered
outside your own house.
Unless, you know…
I found it!!
Oh, but someone cracked the screen!!!
Just call Domino's on the landline!!!
And of course if you’re not happy with the way that a mobile insurer treats your claim, you
can complain to the ombudsman.
But not the Telco Ombudsman.
The FOS, the Financial Ombudsman Service.
Unless you’re complaining about Telstra, in which case, you’ll have to go through
the TIO.
Ok. That’s it!
I think we did it!
Oh!
Hello yes!
Ah. Never mind.