Mobile Phone Insurance Pros / Cons

In the mid 2000’s making a claim on insurance for device repairs, like a cracked screen or water damage, simply meant you were responsible for disposing of the damaged device and receiving a new mobile phone within a few days. You paid your $200 excess and your premium went up slightly, no biggie you have a new phone after all.

Between 2010 – 2012 insurance companies found the number of mobile phone claims were rising due to an increased supply, being made of glass and therefore more fragile, and people were profiting from their partially faulty devices by on-selling them after they received a replacement. Nowadays the process is far more controlled, if you have a cracked screen the device is repaired and sent back to you.

Here is the current comparison between having your phone repaired privately and via your insurance company.

Private Company:

• Generally under $250
• Takes 1 – 2 hours

Insurance Company:

• $200 – $300 excess
• You pay a premium + and increase in premium if you claim
• Send your device in, expect it repaired and sent back after 3 – 7 days.

For most people specific mobile phone insurance is not worthwhile. Why pay a premium when you pay an excess anyway? ask for a loss or theft only plan, this will reduce your premium significantly and cover you for the replacement. The other option is if you have add your phone to your home & contents, that way if you lose your phone its worth making a claim however, if it’s just got a cracked screen then it’s far more economical to use a private company.