A lot of people don’t know how much their handset costs, because they didn’t pay for it outright. However, many handsets can be expensive – very expensive. If your mobile phone is lost or stolen, it can be frustrating to lose all of your contacts and data, but losing a valuable handset is just the icing on the cake.

You can opt for mobile insurance from your mobile plan provider when you first purchase the handset, or you can select an insurance plan from another company. Mobile insurance covers expenses if your mobile is damaged, lost, or stolen. You can also choose to cancel your mobile insurance at any time if it is with your plan provider.

What if I don’t have insurance and my phone is damaged, lost, or stolen?

•If the phone is stolen, you may have to pay for any unauthorised calls that are made.

Remember, it is important if your phone is lost or stolen to report it to the mobile carrier as soon as possible in case any unauthorised calls are being made.

•You will need to obtain a new phone. If you are still in contract, cancellation fees can be high, and you may be required to purchase a new phone outright – mid to high-end mobile phones can be very costly!

What does mobile insurance cover?

This can depend on which mobile insurance plan your phone is covered by. You may have to pay extra each month for a more extensive cover. Make sure you read the fine print on any insurance plan you sign up to, so you know what you’ll be covered for, and what you won’t, as well as the procedure you’ll need to do in order take to make a claim.

To get an idea of how mobile insurance works, here is a run-down of Optus’s mobile insurance plans:

On Optus you can pay $8.99 a month (the Optus Standard Insurance Plan) to cover your phone against theft, accidental loss and accident damage; if you decide to pay $13.99 a month (the Optus Smart Insurance Plan), you will be covered for theft, accidental loss, accidental damage and electronic breakdown/failure.

Additionally, the Optus Standard Insurance Plan will only cover you nationally; you can claim up to $800; up to $300 of unauthorised calls; and the insurance does not cover you for accessories. The Optus Smart Insurance Plan will cover you internationally; up to $2000 worth of damage; up to $600 of international calls; and will cover the replacement cost of your mobile phone’s accessories. All smartphones have to be covered by the Optus Smart Insurance Plan.

What does mobile insurance not cover?

Again, this can depend on your insurance plan. However, most insurance plans will not cover wear and tear, water damage, or if the product is covered under warranty by its manufacturer. You may not be covered if your mobile is stolen from an unlocked vehicle, or if it was visible inside the vehicle.

How much does mobile phone insurance cost per month?

Optus: $8.88/$13.99 – Up to $800/$2000 per claim
Vodafone: $9.99 – Up to $1700 per claim
Virgin Mobile: $8.95 – Up to $5000 per claim

If you make a claim you will also be charged an ‘excess’ amount. This amount can depend on which insurance plan you are on, as well as whether the handset needs to be repaired or replaced.