Phone insurance – all you need to know

What is phone insurance?

Phone insurance helps pay for repairs or replacement if your phone is stolen, damaged, or lost. In Australia, there are five main options for phone insurance:

• Contents insurance
• Portable contents Insurance
• Standalone mobile Insurance
• Credit card purchase protection
• Mobile provider cover

Most cover theft and accidental damage, but not all include coverage outside the home. Each option has its pros and cons, so be sure to know the differences to pick the one that suits you best.

Home contents insurance for mobile phones

If you have a home contents policy, your phone might already be insured. However, unlike a standalone phone insurance policy, what it covers can be limited, and you won't have cover for it when you use it outside the house.

Because contents policies cover a wide range of items, there are usually per-item limits for devices like phones, which won't always cover the full cost of replacement or repair. You may also have the same excess for claims against your phone as you would with other items, which can get expensive compared to the value of your phone.

Who's it for? This is an easy way to protect your phone, as it's already included in most home and contents policies. But depending on your phone's value, the cost of making a claim might not be worth it. For example, some excesses can be around $500, which could exceed the cost of repairing your phone. Also, the list of claimable events for phone damage is relatively restricted. Unless the damage occurs during a house fire, theft, or flood, you're unlikely to be covered.

If you're looking for cover when you're out and about with your phone, consider a portable contents or a dedicated phone policy.

Portable contents insurance for mobile phones

Adding portable contents cover to your home insurance can protect your phone against loss, theft, or damage when you are away from home. Keep in mind, though, that 'away from home' usually still means within the country. If you're taking your phone overseas, a travel insurance policy will offer better protection.

It's an optional extra on a regular contents insurance policy, so an increased premium and excess fees will usually apply. Some policies have a different excess that applies to extras like portable contents, and others require you to pay the excess listed in your contents policy to use it.

Who's it for? If you already have contents insurance, adding portable contents cover is an easy way to protect your phone while you're away from home. However, it's important to check what premium increases and excess applies. A portable contents claim can sometimes cost in the hundreds, which won't always be worth it depending on the value of your phone. Also, some insurers won't cover the damage to your phone if it's as minor as a cracked screen, so it's important to read the fine print on exactly how your phone can be covered.

Standalone mobile phone insurance

Standalone mobile phone insurance is an affordable way to get dedicated cover for your device. Unfortunately, in our experience, there aren't many options in Australia for standalone insurance. We did find Switched On Insurance, however, which offers two levels of phone insurance for a small monthly subscription fee.

Who's it for? Standalone phone insurance can be good for those who want coverage for everyday hassles like cracked screens and liquid damage. Because there are typically no contracts and a short cooling off period, it can offer a more flexibility than other types of insurance.

Credit card purchase protection for phones

Many credit card companies offer purchase protection for phones as a benefit for cardholders. This type of cover is designed to protect your phone against damage, loss, or theft up to a certain time after purchase.

The details of the cover vary between brands, including eligibility, timeframes, cover limits, and whether you have to pay a fee to make a claim. For example, NAB offers 90 days of coverage after purchase, while Westpac provides four months. Cover limits can also vary quite a bit. We found that Citibank won't pay more than $1,650 over 12 months, whereas Bendigo Bank has a $25,000 limit.

Who's it for? Depending on the credit card provider, purchase protection can cover your phone without you having to pay a cent. However, if you want extended protection, this might not be the option for you as cover periods can be as short as 3-4 months.

It's important to note credit card purchase protection is not the same as standalone phone insurance and there may be more restrictions that apply.

Mobile provider cover

Many phone providers offer a level of cover with "Swap, Replace, or Repair" or "Upgrade and Protect" programs when you purchase a phone with them on a plan. You pay a monthly subscription fee which lets you upgrade your phone or replace your screen for a heavily discounted fee. Some providers offer free upgrades if your phone is in working order after a certain period in your contract.

For example, Telstra Upgrade & Protect offers a $0 upgrade if your phone is in good working order within the final 6 months of a 12-month contract or in the final 12 months of another contract. With Optus Upgrade & Protect, upgrading your device is free if you have less than a year of repayments on a phone you purchased with them.

Who's it for? If you're on a budget and want basic, hassle-free phone protection, this is a good option. However, if you're looking to insure your phone against theft or loss, this type of cover may not be enough.

It's important to understand that depending on your needs, mobile provider cover can get expensive. While the initial cost is usually only $10-20 per month, depending on how many claims you make and how long you keep the service, the regular payments and fees can add up over time.

Compare contents insurance that can include phone cover

1 - 4 of 8

Product AUFHO	Do they cover phones?	Contents Temporarily Removed From Home	Accidental Damage to Home or Belongings	Theft
QBE Contents Insurance Green Company	Optional		Optional		Our verdict: It covers essentials such as fire and theft plus comes with some good perks such as security upgrades after a burglary and up to 10% off your first year.	Get a quoteView details Compare	loading Fetching your data...
Qantas Contents Insurance Bonus	Optional	20% of the contents sum insured	Optional		Our verdict: Earn up to 40K Qantas Points for joining by 29 January. Plus save 30% on your 1st year's premium for purchasing a combined home and contents policy online. T&Cs apply.	Get a quoteView details Compare	loading Fetching your data...
Honey Contents Insurance		20% of your contents sum insured	Optional		Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates the value of your contents. It was also a finalist for the comprehensive category in the Finder Awards.	Get a quoteView details Compare	loading Fetching your data...
Kogan Contents Insurance Bonus	Optional		Optional		Our verdict: Good comprehensive cover (issued by QBE). Also, get $5 Kogan.com credit when you purchase a new Kogan contents insurance policy online. T&Cs apply.	Get a quoteView details Compare	loading Fetching your data...

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How much does it cost to insure a phone?

It all depends on the type of phone insurance you choose and whether you've got home and contents insurance. Each type has its own pay model, which changes how much you end up paying to get cover and to use it.

Even if the initial cost seems cheap, premiums and additional fees can really add up if you're not careful, so it's always a good idea to compare policies. Let's take a look at the average price of a few different brands and phone insurance types.

At the higher end, both GIO ($307.31) and Budget Direct ($231.63) will charge you over $200 extra to include a phone in your contents insurance policy. While it was less than $100 extra to insure your phone with AAMI ($87.65) as the cheapest option.

Provider	Premium cost without phone	Premium cost with phone
	$492.63	$724.26
	$515.93	$637.74
	$405.79	$493.44
	$968.51	$1,133.25
	$478.03	$785.34

_{This information is accurate as of November 2024.}

• Learn more about our methodology

  • $65,000 contents sum insured
  • Quotes were obtained from a New South Wales home in Elizabeth Bay owned by a family of 2.
  • The homeowning family moved into their property in 2020.

  • Quotes were obtained in November 2024 and were for contents insurance only.
  • The house was a 3-bedroom, 1-story freestanding house on flat ground with brick veneer walls, terracotta tiled roof, no verandas and built in 1990.
  • Windows were secured by deadlocks, with no security devices.

Our expert says

"Phone insurance can be extremely handy! I've had to replace any number of handsets or get them repaired over the years thanks to dropping them on bushwalks, dropping them on cement, and on one unfortunate occasion dropping it in the bathroom. With the right policy, you can save quite a bit on repairs -- just make sure you do some comparisons before you buy. "

Tom Goodwin

Editor

What to consider before buying phone insurance

Replacing your phone can be expensive, but the options to insure a phone aren't necessarily cheap either. It's important to consider if phone insurance is worth the purchase. Ask yourself:

• Could you afford to replace your phone if it was stolen or damaged beyond repair? If the answer is no, a form of portable contents insurance or general phone insurance could be a good option.
• Do you rely on your phone for work? If yes and you wouldn't have the funds to replace it out of pocket, insurance could be worth considering.
• Does the insurance policy you're looking at cover the damage you expect to incur? For example, if you're looking into phone insurance because you're a chronic screen cracker, be sure that this is actually covered. In a few of the contents policies we looked at, cracked phone screens didn't make the cut for inclusions.

It's always a good idea to weigh the costs of each policy type to see if it's worth it compared to fixing or replacing your phone on your own.

Think about how important your phone is to you and the chances of it getting damaged or lost. If you tend to go through phones quickly or if it's vital for work and you travel a lot, it might be worth considering a form of phone insurance.

FAQs

• Is phone insurance worth it?

  If you go through phones quickly, phone insurance can be helpful. Consider your phone's value and whether you can afford to replace it out of pocket. If the cost of insurance is more than a repair or replacement, it might not be worth it

• Does phone insurance cover a cracked screen?

  Yes. 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. Contents insurance may or may not cover it, depending on how it happened. Consider the excess fees for repairs, and using a screen protector can help prevent damage.

• Does mobile phone insurance cover water damage?

  Yes. Phone insurance from mobile providers will typically cover water damage, while contents insurance policies typically will not. Once again, this depends on how it happened.

• Can you add insurance to a phone after purchase?

  You can buy phone insurance after purchase, but each insurer has its own rules about how old the phone can be. It's best to consider insurance before or soon after buying the phone to ensure eligibility.

Written by

Cameron Thach

Insurance Content Writer

Cameron is the local insurance scholar at Finder. With a diverse background writing in independent education, web-3, and finance, his mission is to build helpful content and that speaks to readers in language they understand. See full bio

Co-written by

Cristal Dyer

Writer

Cristal Dyer is a travel writer at Finder. She has been writing about travel for over five years and has visited over 40 countries around the world. Cristal currently travels full-time, writing about her favourite cities and food finds, and she is always on the lookout for amazing flight deals to share. See full bio