Okay, Im on hold while the phone repair
people work out how much itll cost to get this thing de-smashed. Ive 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.
Lets go. What is mobile phone insurance? Good question. Its where you pay a small, regular fee
to make sure that if anything terrible should happen to your
brand new, beautiful, expensive Distraction Rectangle youll 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 doesnt include any excess
youll have to pay on a claim, which well get to later! *You are now third in the queue* If we have time! How Do I Get Mobile Phone Insurance? Right, its 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 youre 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 – dont 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 doesnt cover damage
from wear and tear. They tend to exclude damage by fire, and anything that happens to the phone when your normal sim isnt in it – like you might
do when youre overseas. And heres a big one. If youre getting phone insurance cos youre
worried about losing your mobile or having it stolen, then you may be interested to learn
that Vodafone and Virgins policies dont 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 youd lose a device. Unless of course youre in the habit of losing your
phone in your own house. Well, Lizzie, have you checked the silk tapestry
room? Of course, Philip! Theres nothing there but silk tapestries! Are There Any Other Options? A few. Telstra and Apple both offer products that
arent your classic insurance but function in similar ways.
AppleCare costs between $189 and $299 for
two years cover. In that time, theyll repair or replace
your phone for two incidents of accidental damage, but not if its lost or stolen. Each time theres 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 isnt an insurance product,
its 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 youre gonna need to make a claim. If youre a person that’s never dropped
their phone in the toilet twice in one week – well how nice it must be being so
Maybe mobile phone insurance isnt for you. If youre 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. Youve also got to look at what excesses you
have to pay upfront for every claim, then add that to what youll pay in premiums
over the life of the policy.
So, it might cost you $125 every time you
get your phone repaired, but youre also paying $360 bucks over the life of the policy
– so thats almost $500 every time you get it replaced. In that case, youd be wanting to smash
your phone a fair bit to make it worth your while. Oh! Someone dropped their iPhone here Ill just Hey wait thats 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 its just not worth it.
Or you may decide that its 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 its
worth asking. It could cost you nothing, or still be a lot
cheaper. But! Its 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 youre 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 youre complaining about Telstra,
in which case, youll have to go through the TIO. Ok.
Thats it! I think we did it! Oh! Hello yes! Ah. Never mind..