Phone Insurance in Australia: Is It Worth It?
In today’s digital world, our smartphones are more than just devices—they’re essential tools for work, communication, and entertainment. But with so many options, from Vodafone Device Care to Budget Direct mobile phone insurance, how do you know if phone insurance is worth it?
This guide will break down everything you need to know about mobile phone insurance in Australia—what it covers, how much it costs, and which providers offer the best mobile phone insurance Australia has to offer. Whether you're looking for the cheapest phone insurance Australia has available or premium coverage, we’ve got you covered.
What is Phone Insurance and Do You Really Need It?
We rely on our phones for everything—calling, texting, shopping, working, and even banking. But accidents happen. A dropped phone, a cracked screen, or even theft can leave you scrambling for a solution. This is where mobile phone insurance comes in.
Phone insurance is designed to cover you in case of accidental damage, theft, loss, and sometimes even water damage. Instead of paying the full price for a repair or replacement, you’ll pay a monthly fee and possibly an excess (a small portion of the repair cost) when making a claim.
For some people, phone insurance is a lifesaver, especially if they own an expensive model like an iPhone 16 Pro or Samsung Galaxy S24 Ultra. For others, it might not be necessary if their phone is older or easily replaceable.
If you’re someone who frequently drops, loses, or damages their phone, or if you use your phone for work, insurance might be worth considering. On the other hand, if your phone is budget-friendly and you can afford to repair or replace it yourself, you might not need a policy.
What Does Phone Insurance Cover?
Coverage varies depending on the provider and plan, but most mobile phone insurance policies cover the following:
- Accidental damage: If you drop your phone and crack the screen or damage internal components, insurance can help cover repair costs.
- Theft: If your phone is stolen, some insurers will provide a replacement or reimburse you for the loss. However, you often need to provide a police report.
- Water damage: Whether you drop your phone in the sink, spill coffee on it, or get caught in the rain, water damage is often included in coverage.
- Loss (only with some providers): Not all insurers cover lost phones, so check the policy carefully before signing up.
However, phone insurance does not typically cover general wear and tear, intentional damage, or unauthorized repairs. If you try to fix your phone at a non-approved repair shop, you may void your coverage. Understanding the fine print of your insurance policy will prevent any nasty surprises when it’s time to make a claim.
How Much Does Phone Insurance Cost in Australia?
The cost of mobile phone insurance in Australia varies depending on the provider, phone model, and coverage level. Here’s what you can expect from major insurers:
- Vodafone Device Care: This is only $14.99 per month, and offers coverage on damages such as screen repairs, device replacements, and more for your phone, tablet, or wearables.
- Telstra Upgrade & Protect: Starts from $15 per month, making it one of the more affordable options. This offers insurance to repair broken screens or upgrade your device.
- Budget Direct Mobile Phone Insurance: Known for low-cost plans with decent coverage.
- CoverTec Phone Insurance: The price for this one ranges from $8.99-$55.00. Offers flexible plans for both repair and replacement coverage for all electronic devices.
- NRMA Mobile Phone Insurance: Can be bundled with other insurance plans, which may reduce overall costs.
- Apple Care +: Ranges from $7.99-$13.99 depending on the kind of Apple device you have. This is the best insurance for Apple users if you tend to damage your device often.
Keep in mind: Some insurers require an excess payment when you make a claim. For example, even if your insurance covers screen repairs, you may still have to pay a portion of the cost.
Does Optus have device insurance?
Currently, Optus does not offer device insurance for new customers. If you purchased it before, you can make a claim by calling Optus Customer Service.
Is Phone Insurance Worth Getting?
The decision to insure your phone comes down to risk vs. cost. If you have an expensive smartphone and can’t afford to replace it out of pocket, insurance can offer peace of mind. Even a single cracked screen repair can cost upwards of $400 for an iPhone, which might make paying a monthly premium seem like a good investment.
However, if your phone is older or easily replaceable, you might be better off saving the money instead of paying for insurance. Many people choose to set aside a small emergency fund for repairs rather than pay a monthly fee.
Who Should Consider Phone Insurance?
- People with expensive phones: If your device costs over $1,000, insurance might be worth it.
- Frequent travelers: If you travel often, your risk of loss or theft increases.
- Those prone to accidents: If you’ve broken multiple screens in the past, insurance could save you money in the long run.
- Workers who rely on their phones: If your job depends on your phone, quick replacements are crucial.
Who Might Not Need Phone Insurance?
- People with older phones: If your phone is already a few years old, insurance may not be necessary.
- Those who can afford repairs easily: If a cracked screen won’t break your budget, insurance might not be needed.
- Users with extended warranties or AppleCare+: If you already have coverage, additional insurance may be unnecessary.
What is the Best Mobile Phone Insurance in Australia?
There is no one-size-fits-all answer, as the best option depends on your needs. Here’s a quick breakdown:
- Best for iPhone users: AppleCare+ (for official Apple repairs) or Budget Direct Mobile Phone Insurance.
- Best for Samsung users: Vodafone’s phone insurance or Telstra Repair & Replace with Samsung-approved repairs.
- Best for budget-conscious customers: Budget Direct or Vodafone’s phone insurance for lower premiums.
- Best for full coverage: NRMA or CoverTec which often include theft and loss coverage.
When choosing a plan, compare policies based on cost, coverage, ease of claims, and excess fees to find the best fit.
Important!
With some companies like AAMI or NRMA insurance, you can bundle your home and mobile insurance to keep all of your belongings safe!
Should You Insure Your Phone?
If your phone is high-value, essential for work, or at risk of damage or theft, then mobile phone insurance can be a smart investment. However, if you’re using an older model or can afford to repair it yourself, you might not need insurance at all.
Before committing to a policy, compare mobile phone insurance in Australia and consider your risk level. If you do decide to get insured, choose a provider that offers the best coverage for your needs at the most reasonable price.
