Why it makes no sense taking mobile phone insurance in Australia

ImageI’ve been with Telstra for nearly two years. During that time I’ve been on an $80 plan, generating in excess of $1800  in revenues for them so far – non-inclusive of the upsells like phone insurance which they convinced me was a good idea at some five or ten bucks a month.

A week ago my phone, a Galaxy Nexus was either lost or stolen. So I did what the process demanded I do – filed a police report, got my IMIE number and lodged my claim.

The guy at Telstra Premium Care then told me I would get a Samsung Galaxy S4 MINI (those are the magic words) as a replacement and I would have to pay a basic excess of $250 in addition.

I was okay with that  – but not so ok when I found out that the S4 Mini was a bonsai compared to its cousin the Nexus – and that the retail price at Mobicity was $139!

Not sure where Telstra’s head is, but it’s definitely not on the business. At $5 a month for insurance (and I could well have paid more), I’ve paid roughly $120 for nothing – plus I need to pay another $250 as an excess which means I’ll be paying $350 in total for the joy and privilege of owning an S4 failed state that runs on Froyo and that actually costs $139 at Mobicity – fully unlocked!

Something’s not right here. Tell me I’m not the only one who thinks so.

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