Is phone insurance worth it in Australia?

For most people, no. The math doesn't work out. AppleCare+ for an iPhone 17 Pro Max costs $399 AUD for 2 years plus a $45 excess per claim. Over 3 years of phone ownership, you'll pay $399 even if you never make a claim. A single screen repair at an independent shop costs $349–$549. Unless you break your screen twice, you'd have saved money by self-insuring and paying for repairs only if they happen.

How much does AppleCare+ cost in Australia?

AppleCare+ in Australia costs $269–$399 AUD for 2 years depending on the model, or $13.49–$19.99/month. It covers accidental damage with a $45 excess fee per incident (screen) or $149 per incident (other damage). AppleCare+ with Theft and Loss adds $60–$100 to the price with a $229 excess per claim.

What is self-insuring for phone repairs?

Self-insuring means skipping insurance entirely and paying for repairs out of pocket only when (and if) they happen. Instead of paying $15-20/month for insurance you might never use, you set aside $200-300 in a savings account as your 'phone repair fund.' If you never break your phone, you keep the money. If you do break it, you pay for the repair directly — usually at an independent shop which is cheaper than insurance excess + premiums combined.

Phone insurance vs self-insuring in Australia — the honest math

The short answer

For most people, phone insurance is not worth the money. The total cost of premiums over 2-3 years of phone ownership exceeds the cost of the most common repair (screen replacement) at an independent shop. You're paying to insure against a repair that costs less than the insurance itself.

There are exceptions — if you consistently break phones multiple times per year, or if you have an ultra-premium foldable, insurance can make sense. But for the average person who cracks a screen once every 2-3 years? Self-insuring wins the math every time.

The numbers: AppleCare+ vs self-insuring

Let's use the iPhone 17 Pro Max as the example — the most expensive common iPhone to repair.

AppleCare+ cost (2 years)

Upfront: $399 AUD for 2 years (or $19.99/month = $480 over 2 years). Per claim: $45 excess (screen) or $149 excess (other damage). If you never claim: You've spent $399-$480 for nothing. If you claim once (screen): $399 + $45 = $444 total cost. If you claim twice (2 screens): $399 + $90 = $489 total cost.

Self-insuring cost (same 2 years)

Upfront: $0. If you never break anything: $0 total cost. You keep the $399 you didn't spend on insurance. If you break the screen once: $349-$549 at an indie shop, or $379 at Apple authorised. If you break the screen twice: $698-$1,098 at indie shops. This is the only scenario where AppleCare+ clearly wins.

The breakeven: AppleCare+ only saves you money if you make 2+ accidental damage claims in 2 years. For most people, the chance of cracking a screen twice in 2 years is well under 20%. That means 80%+ of AppleCare+ buyers would have saved money by self-insuring.

Samsung Care+ — same story

Samsung Care+ for the Galaxy S26 Ultra costs $14.99/month ($360 over 2 years) with a $99 excess per accidental damage claim. A screen replacement at an indie shop costs $399-$619.

One claim: $360 + $99 = $459 (insurance) vs $399-$619 (self-insured). Insurance wins slightly on the high-end repair, loses on the low-end.

No claims: $360 wasted vs $0. Self-insuring wins by $360.

Same conclusion: unless you're consistently breaking your phone, self-insuring is cheaper.

Carrier insurance (Telstra, Optus, Vodafone)

Carrier insurance is the worst value of all. Typical plans cost $15-$20/month ($360-$480/year) with excess fees of $99-$249 per claim. Over a 2-year contract, that's $720-$960 in premiums — more than the cost of replacing the screen AND battery AND back glass at independent shops.

Carrier insurance also typically requires you to use their approved repair partners (not your local indie shop) and may replace your phone with a refurbished unit rather than repairing the original. You often lose your data in the process.

Our recommendation: Cancel carrier phone insurance immediately. It's the most overpriced insurance product in the Australian consumer market.

When insurance IS worth it

Foldable phones. A Galaxy Z Fold 6 inner screen replacement costs $599-$899. Samsung Care+ at $14.99/month + $99 excess = $459 for one claim over 2 years. That's a genuine saving on a repair that costs $599+. Foldable screens are also more fragile than traditional phones — the claim probability is higher.

Chronic phone droppers. If you've broken your screen 3+ times in the last 3 years, you're in the high-risk category where insurance makes statistical sense. But also consider: a $30 protective case + screen protector prevents most screen cracks and costs $30 total, not $399/year.

Theft and loss cover. AppleCare+ with Theft and Loss adds $60-$100 to the standard price with a $229 excess. If you live in a high-theft area or frequently travel, this is the one type of phone insurance that can't be replicated by self-insuring — you can't self-insure against theft.

The self-insuring strategy

Here's how to self-insure properly:

Step 1: Don't buy phone insurance. Save the $15-$20/month you would have spent.

Step 2: Set aside $250-$300 in a savings account as your "phone repair fund." This covers the most common repair (screen replacement) for any mid-range or flagship phone at an independent shop.

Step 3: Buy a good protective case ($20-$50) and a tempered glass screen protector ($10-$15). This prevents 80%+ of screen cracks and costs $30-$65 total — compared to $399/year for AppleCare+.

Step 4: If your phone breaks, pay for the repair from your fund. Use the repair calculator to know the cost before walking into a shop. Choose an independent shop with good reviews and a 90-day warranty — see our guide to finding a trustworthy shop.

Step 5: If your phone doesn't break (which is the most likely outcome), you keep the money. Over 5 years and 2 phone upgrades, you'll have saved $800-$1,000 in insurance premiums that you never needed.

The bottom line

Phone insurance is a product designed to profit the insurer, not protect you. The premiums are priced so that the insurance company makes money on average — which means the average customer loses money on average. The only question is whether you're in the minority who claims enough to beat the house. Statistically, most people aren't.

For exact repair costs on your specific phone — so you can calculate your own insurance vs self-insuring breakeven — use the repair calculator or browse all 75+ models with pricing.

Phone insurance vs self-insuring — the honest math.