Phone insurance how dropping your phone can cost you a fortune

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THAT sinking feeling of dropping your smartphone into a pool of water, smashing its screen or losing it is known all too well by phone users.

A Telstra spokesman says they even had one insurance claim by a customer who damaged their phone after they were kicked by a horse.

With phone damage not only comes the inconvenience but also a hefty price tag, particularly for those customers who have failed to take out insurance cover.

And for those who do pay it each month it isnt cheap it usually ranges from about $10 to $15 per month and covers accidental damage, theft and water damage.

Insurance can be expensive says Joseph Hanlon, editor at telco comparison website Whistleout, but its up to the individual to work out whether they think its worth paying extra each month.

An extra $10 or so per month is an extra $240 over the life of the contract adds up but usually you have to take it out as soon as you sign up to a contract or at least within 30 days,’ he says.

You cant go to Apple and buy a phone and then go to a telco provider for insurance, phone insurance adds up so its a personal choice on whether or not to take it out.

Insurance usually come with significant excess charge if something does go wrong and it often starts from at least $100 to make a claim.

Hanlon suggests consumers read up on their own home and contents insurance policy to see whether their phone is covered for any damage or loss this may save paying extra for individual cover when signing up to a new phone contract.

He also always reading the terms and conditions of a contract to make sure you understand what youre covered for.

A Telstra spokesman says they have multiple insurance options including the Our StayConnected Plus program which charges postpaid customers $15 per month and allows a phone to be swapped or replaced up to twice a year for a fee of up to $220.

Rival provider Optus charges customers $14 per month for claims of theft, loss, accidental damage or breakdown/failure but the excesses do vary.

A $100 charge applies for accidental damage or electronic breakdowns, while a heftier $200 fee applies if the phone is lost or stolen.