Phone Insurance

Get iPhone & Samsung cover for less than $12 per month
Updated 10 December 2018
Phone insurance is growing in popularity in New Zealand and is designed to protect your phone if it is accidentally damaged, lost or stolen. Policies also provide protection after the manufacturer warranty period has ended. 

Why buy phone insurance?
  1. Phone insurance protects you from paying for an existing phone contract and a new phone if your phone is lost or stolen. 
  2. If your phone is out of warranty, phone insurance can cover the cost of any repairs should it develop a fault later. 
  3. Third-party phone insurance policies, such as those offered by Cove Insurance, can sometimes work out cheaper than the insurance cover quoted by the Spark and Vodafone when taking into account the policies – see our comparison below (LINK). 
  4. You might be covered by your home and/or contents insurance – check your policy or read our guide to contents insurance
What does phone insurance cover?
If you’ve owned a phone before, you will probably know that almost anything can happen to it. Depending on the policy, you may be able to claim for:
  1. A lost phone: i.e. if you accidentally leave your phone somewhere and can’t retrieve it, phone insurance may cover you and provide you with a similar model to the one you lost.
  2. A cracked screen: i.e. the costs of repairing or replacing a cracked phone screen and any other related repairs.
  3. Water damage: i.e. accidental liquid damage if your phone has fallen in water or been splashed or soaked.
  4. Battery replacement: i.e. if your battery stops working, you could claim for a replacement battery
  5. Theft cover: i.e. if someone steals your phone, you could claim for a replacement phone that is a similar model.
  6. Fraudulent activity costs: i.e. if a thief uses your stolen phone to make calls and/or use data
  7. Cost of hiring a temporary mobile device: i.e. if your mobile device is lost or stolen while you’re overseas (but you’ll need to keep the receipts)
  8. Overseas cover: i.e. if you go overseas and your phone is damaged, lost or stolen ​
Know This: Spark, Vodafone and Cove Insurance offer different policies 
Your cover will depend on who you insure with any additional insurance you select. To make sure you know exactly what you’re covered for, it is essential to read the policy documents carefully before taking out insurance with your chosen provider. Will Cove Insurance allows you to insure any phone from any network, where as Spark's phone insurance won't cover Vodafone phones, and vice versa.
Warning: Phone insurance generally has many exclusions as to what it covers.
Buying phone insurance is easy, but claiming on it may not be. The fine print of each policy explains what won't be covered, which are usually things like:
  1. A phone which does not have your sim card in it (for Vodafone and Spark)
  2. Loss, theft or damage caused by or arising from any modification or repair not carried out by an authorised repairer (i.e in the case of Vodafone or Spark policies)
  3. Loss, theft or damage caused by or arising from fire.
  4. Loss, theft or damage if you didn't take 'reasonable care' to prevent the incident
  5. Loss if you leave your phone unattended (i.e. out of your sight, possession or control) in a public place; or your workplace, any vehicle, aircraft or boat), or in an unlocked car
  6. Loss or theft where you leave your phone in an unknown location or if you forget where it is
  7. Damage caused by any content (i.e. downloads)
  8. Manufacturing faults, wear and tear, gradual deterioration, slowly developing flaws, corrosion or latent defect, or damage caused by dampness of the atmosphere or by normal variations in atmospheric temperature;
  9. Damage if you the failure to follow the manufacturer’s instructions; or use accessories or software not approved by the manufacturer; incorrect connections of signal leads/power supply, power surge, or a virus
  10. Any content you have downloaded on your phone
  11. If the incident occurred after it was given, lent or sold to anyone other than you
  12. Any manufacturer defects or a recall of the phone
  13. Minor cosmetic damage like scratches that do not affect the phone performance or safety
  14. A lost sim card
  15. Any damage where the damaged phone isn’t handed in for repair
  16. If you intentionally or maliciously damage your phone 
  17. If you know who has caused the incident but refuse to tell the insurer who this person is

X Phone Insurance 'Must Knows'

Check your phone can be covered before you take out insurance

Some phones may not be covered, or not eligible depending on its history. Before you take out any phone insurance policy, it is a good idea to check:
  1. Whether your phone was bought directly from Spark, Vodafone or 2Degrees, a mobile phone retailer or certified online retailer, and not second-hand from Trade Me or an overseas online auction website.
  2. Whether your device is already damaged (even small cosmetic hairline cracks can grow into bigger problems)
  3. How old the phone is
  4. Whether you have proof of purchase

When you buy phone insurance you will need to confirm that the information you provide is correct and true. If there are any incorrect details, the insurer could decide not to deny a claim later on. 
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Phone insurance is not cheap when you consider the number of exclusions and monthly costs. We believe there is a lot of profit to made from phone insurance when sold by a retailer, so we suggest not instantly saying yes to the quote they give you. It is unlikely to be the final offer. If you want to go with Spark or Vodafone, ask for a serious discount - 50% is a good place to start your negotiation. Failing that, shop around and compare using our best buy (LINK) comparison below. 
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Do you have a habit of losing or damaging phones?

Phone insurance isn't compulsory, so it's worth asking yourself how likely you are to lose or damage your phone. If you haven't had any issues with other phones over the years, you're more likely to be low-risk and in less need of a phone insurance policy. On the other hand, if you continuously find yourself with a broken or damaged phone it may be an idea to look at phone insurance. The decision will come down to cost and whether or not you are happy to take a risk.

Frequent phone insurance claims usually lead to higher excess charges

Unlike most insurance, phone insurance is usually a fixed-price policy no matter what you claim history is. While this gives you certainty of ongoing costs, there are usually restrictions in how often you can claim, and may cancel or stop you from renewing your insurance if you have claimed more than it permits. 

Specifically:
  • Vodafone has an excess of $200 for your first claim, or $250 for a second claim within 12 months (where a phone is valued below $1,801) or $350/$400 if the phone's value is $1801-$2,100. Vodafone's insurer also has the right to review your policy "if you make two claims within any 12 month period" and can decide to not renew your policy. 
  • Spark has an excess of $195 per claim, with a limit of three claims per year. After the third claim, Spark will cancel your policy. 
  • Cove has an excess of $200 per claim, with no caps or limits on how many times you can claim.​

The age and value of your phone is important



​Cove Insurance doesn't cover 
​Does the age of the mobile phone matter?
Yes it does. Many mobile phone policies usually have a condition that you can only start cover within six months of purchasing a new mobile phone. If you purchased your mobile over six months ago, getting cover can be difficult though Gadget Cover* will accept mobiles up to 18 months after the purchase date.

You'll be able to let an existing policy renew each year but the age rule means you're probably stuck with that initial provider as your choice of mobile insurers reduces.

With the major network providers, you get less time to decide whether to go with their policies, with them either wanting to know immediately or up to 28 days from the date of purchase of the mobile phone.

An option if your mobile is over six months old and you cannot find a decent mobile phone insurance policy is to consider arranging cover via your home insurance policy and in particular the all risks or personal possessions section of the policy, which protects property outside your home. But do take into account a usually higher excess and the loss of any no-claims discount.

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The annual cost of a phone insurance policy adds up

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Phone Insurance FAQs

​What happens if I don't have phone insurance?

It depends on the issue with your phone. If you believe there is a fault due to a manufacturing problem, you will need to check your manufacturer's warranty first to see if it’ll cover the cost of repairs. If the warranty has expired, you can ask for a quote for out-of-warranty repairs with the retailer or manufacturer. Alternatively you can take it to any phone shop to see if they can help. 
 
But if you have damaged, lost or had your phone stolen and don't have insurance, you are on your own and will have to repair or replace the phone at your own expense. If you are still under contract, you will probably need to look at buying a new or second-hand sim-free phone and continue paying the contract until it ends. Alternatively you could ask for a quote to end the deal early and decide what's more cost effective and suits your needs.

Can I claim for my phone on my home and/or contents insurance?

It depends on your policy and whether your phone is covered, and then there will probably be fine print that you will need to navigate to see if your claim is valid. Our guide to contents insurance has more details. It's also worth noting that if you do claim on your home and/or contents insurance policy, it may make your next premium more expensive as you are seen as 'higher risk' to an insurer. The excess may also be much higher ($400 to $750 etc) compared to phone insurance ($100 to $200 etc) so it may not be cost effective to make a claim.