Insurance company shelled out $11 million in 2023 to cover mobile phone claims

New report reveals the primary reason behind phone insurance claims

Insurance company shelled out $11 million in 2023 to cover mobile phone claims

Insurance News

By Jonalyn Cueto

Mobile phones have become indispensable in our daily lives. However, a rising tide of mishaps comes with their increasing ubiquity, as revealed in new State Insurance data. According to the report, New Zealanders are filing an average of 30 mobile phone insurance claims every day, amounting to millions of dollars paid out yearly.

Wayne Tippet, the executive general manager of claims at State, disclosed that in 2023 alone, the insurance company shelled out a staggering $11 million to cover 11,300 mobile phone claims. The average claim amounted to about $900.

Accidental damage emerged as the primary culprit behind these claims, responsible for a whopping 81% of cases. According to Scoop Business, dropped phones, often meeting an unforgiving hard surface upon impact, accounted for a significant portion of these accidents.

The nationwide survey commissioned by State shed light on the gravity of the situation, with 40% of respondents admitting to having dropped their phones on the ground, resulting in irreparable damage.

Theft and loss also ranked high among the causes of mobile phone claims, making up 12% and 5% of cases, respectively. Phones snatched from unsuspecting hands or pilfered from tabletops at social gatherings contribute significantly to these statistics.

Tippet emphasized the increasing costs associated with mobile phone claims, noting a 13% rise in the past year. This surge is attributed to the continuous advancements in mobile phone technology, which render repairs and replacements increasingly expensive.

Mitigating the risks in keeping a phone

The indispensability of mobile phones in contemporary life was further underscored by the survey findings, with nearly 70% of New Zealanders admitting they couldn’t go a day without their devices. These gadgets, not only serving as communication tools but also repositories for valuable and sentimental data, hold high personal value.

To mitigate the risk of mobile phone mishaps, Tippet recommended practical measures such as investing in heavy-duty phone cases and tempered glass screen protectors. Additionally, he cautioned against leaving phones unattended in public spaces and advised users to jot down their device’s unique IMEI number in case of theft or loss.

“We should also never leave our phones visibly unattended,” said Tippet. “If you suspect your phone has been stolen, contact your phone provider immediately.”

The report also provided insights into regional trends, with Auckland topping the list for mobile phone claims at 26%, followed by Canterbury, Waikato, Wellington, and Bay of Plenty. Apple emerged as the most claimed mobile phone brand, accounting for 58% of claims, followed by Samsung at 33%.

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