Bupa has announced a new phone insurance product that covers not only damage to your device but also protection from online risks, including identity theft.
Cybercrime is on the rise and according to the Australian Signals Directorate and Australian Cyber Security Centre, there is a cyber incident every six minutes, with an average cost rising 8 per cent to $33,000.
Most contents insurance policies don’t include phones outside the home.
And retailers, phone manufacturers and telcos offer limited coverage for accidental damage which is usually tied to the purchase of a new device.
Among insurance companies there are few options for cyber insurance.
Internet security company Norton does offer protection against scams and identity theft but does not offer insurance for phone damage.
The study of mobile phone insurance claims by Bupa shows damage to the back glass is the most common issue.
The next most common is display bleed or panel damage, followed by unresponsive touch screens and cracked front screens.
Madeleine Young, Bupa General Manager of Product Proposition and Loyalty, says smartphones have become an essential daily product but the protection has not kept up with how we live and work.
“Phone repair and replacement costs have risen sharply, with screen repairs now costing hundreds of dollars and popular phones costing thousands to replace,” Ms Young said.
“At the same time, cybercrime and scams continue to increase, leaving many Australians financially exposed.”
“This is a cover that protects your phone and your digital life together, giving people real peace of mind when things go wrong.
“At Bupa, we’re focused on putting customers first, and as more Australians use their phones to manage their health, we’re adapting our products to better support and protect them.”
Ms Young said Australians need to take steps to safeguard their digital identity.
“Your digital ID is just as valuable as your wallet, so simple steps like using strong passwords, staying alert to scams and taking basic precautions can help protect yourself,” she said.
“When it comes to your phone, simple steps like using a quality protective case and a screen protector can go a long way in preventing costly damage.”
Bupa’s new cover is not tied to buying a new phone and doesn’t lock customers into long contracts.
Usually phone insurance is tied to the purchase of a new device but Bupa’s cover applies to new and existing phones and includes accidental damage even when you’re not home.
Customers can insure a single smartphone which includes cyber cover for $19.95 and will cover up to four phones under the one policy for $49.99 per month.
These policies also come with protection against online fraud and include financial reimbursement for stolen funds, out-of-pocket expenses and online preventative cyber care support.
