Telstra, Vodafone and Optus insurance and phone warranties

Mobile phones are expensive investments, especially brand new flagship devices. There aren’t many other things that we carry around with us at all times that are both fragile, and valuable. It makes sense to want to have some assurance that your purchase is safe, or at least covered if its not.

Warranties and insurance are entirely different things, but in order to understand your rights and what you’re entitled to it’s worth understanding the ins and outs of both.

• Warranty vs. consumer guarantee
• Telstra insurance
• Optus insurance
• Vodafone insurance
• Apple and Samsung phone warranties
• Australian consumer law

Warranty vs. consumer guarantee

Almost every bit of tech you buy seems to come with a warranty, whether its your iPhone 12 or some cheap headphones you bought on sale.

While the ubiquitous nature of warranties may lead you to believe that they are a legal right, there is no legal obligation for a manufacturer to provide a warranty. However, once a warranty is offered with a product, the manufacturer then becomes legally bound to the terms of the warranty and can be held liable if a fault arises and is not dealt with on the basis of these terms.

A consumer guarantee on the other hand is applicable to any product or service under $40,000 ($100,000 after July 1st, 2021) with, or without a warranty. This guarantee states that a product must be of acceptable quality, which boils down to the following;

• Safe, lasting, with no faults
• Looks acceptable
• Does all the things someone would normally expect them to do
• Matches descriptions made by the salesperson, on packaging and labels, and in promotions or advertising
• Match any demonstration model or sample you asked for
• Be fit for the purpose the business told you it would be fit for and for any purpose that you made known to the business before purchasing
• Come with full title and ownership
• Not carry any hidden debts or extra charges
• Come with undisturbed possession, so no one has a right to take the goods away or prevent you from using them
• Meet any extra promises made about performance, condition and quality, such as life time guarantees and money back offers
• Have spare parts and repair facilities available for a reasonable time after purchase unless you were told otherwise.

If any of these conditions are breached, the Australian Consumer and Competitions Commission (ACCC) can step in on your behalf.

Telstra insurance

If you’re bundled up with Telstra you can opt to add in extra protection for your device using the Upgrade and Protect program.

Upgrade and Protect is an additional add-on that allows you to return your phone or tablet to Telstra and trade it in - regardless of the condition it is in. The catch is that once you return your product you’ll need to opt in for a new 24-month term with a new device on the spot. You may also need to pay a $99 fee depending on how long you’ve had the phone for.

Whether Upgrade and Protect is a good deal for consumers entirely depends on the person. You’re paying a $15 per month fee to ultimately be able to get out of your contract early if your phone breaks, but you also can’t leave Telstra. If you’re a blue-blooded Big T supporter and have no desire to switch then this could be a good option.

Optus insurance

Optus offers a single insurance option for a range of mobile phones sold by the provider called Device Protect. Device Protect covers device dramas in Australia and internationally, and extends to accessories provided with your phone or tablet, such as chargers and earbuds.

There are two sets of pricing and excess charges, one for standard and one for premium devices. Regardless of whether you’ve got a premium or standard device you’ll receive the same coverage, the difference is simple that one costs more to insure. It makes sense - the higher the value the higher the price. Both will cover loss, theft, or accidental damage, and even unauthorised usage fees up to $600.

Here is a summary of the Optus insurance fees and coverage.

Optus Device Protect

Vodafone insurance

Vodafone insurance is packaged as Keep Talking and Keep Talking Plus, which covers a range of accidental damage as well as loss and theft.

Keep Talking Plus is the more comprehensive Vodafone insurance for your smartphone or tablet and will set you back $15 per month, while Keep Talking only costs $10.

How much you pay in excess will depend on the value of your phone at claim time. Vodafone figures this out by looking at the current (but lowest) RRP for the device currently available through the provider.

Keep Talking

Keep Talking Plus

Apple and Samsung phone warranties

iPhone warranties

Not all insurance options cover malfunction and breakdown but Apple products come with a one-year warranty that covers technical problems and defects. This limited warranty covers the phone itself and any Apple accessories contained in the original packaging. The warranty covers any defects in materials and workmanship, provided the product is used 'normally and in accordance with Apple’s guidelines'.

Apple also has the option of AppleCare+ for an additional cost. This gives you a two-year warranty, with telephone technical support for two years, an express replacement service for damaged iPhones, and coverage for up to two incidents of accidental damage. Repairs and replacements are also HEAVILY discounted for those with AppleCare+.

Samsung smartphone warranties

Like Apple products, Samsung phones also come with an included limited warranty. According to Samsung's website, smartphones come with a two-year warranty period, which covers replacement or repair for faulty or defective goods. Batteries and other accessories are covered for one year. Samsung smartphones also come with Samsung Care included which helps to expidite repairs, or there is an option to go with Samsung Care Plus as well.

Samsung Care Plus is a phone repair and exchange program with the manufacturer that gives discounted repairs, and replacements for an annual fee.

Australian consumer law: Your rights

Your rights and abilities to seek reparations for faulty products are covered in Australia by Australian Consumer Law, which covers all states and territories and regulates fair trading and consumer protection.

What you need to know as a consumer is that warranties issued by manufacturers do not restrict a customer's rights - and they don't override or limit the Australian Consumer Law. Just because your warranty has expired, or a fault isn't covered by the manufacturer, doesn't necessarily mean you're not entitled to assistance or compensation from a retailer under Australian legislation. This is the consumer guarantee.

The law states that:

• Consumers have the right to ask for a repair, replacement or refund for goods that are faulty, unsafe, look unacceptable, or don't work the way that they're supposed to.
• Australian consumers are entitled to a refund or replacement for a major failure and compensation for any other reasonably unexpected loss or damage.
• Consumers are also entitled to have goods repaired or replaced if they are not of acceptable quality, even if there is no major failure.
• For minor issues, businesses may choose whether to repair, refund or replace the faulty item, and any repairs must happen within a 'reasonable time frame'.
• For major problems, consumers are given the choice between a replacement or a full refund.

Phone manufacturers and telco providers must ensure the goods they sell are fit for purpose, match the description provided and any sample or demonstration models, and have the same qualities and level of performance that have been advertised or promised by the seller.

However, there is a downside - phone manufacturers do not have to provide a refund or replacement if you don't have proof of purchase, you simply changes your mind, if you have caused damage (intentionally or through obvious neglect), or if you were aware of a fault prior to making the purchase. They may do so in a show of goodwill, but there is no legal requirement.

Anula Wiwatowska

Offsite Editorial Lead | Instagram

Anula is the Off-Site Editorial Lead for WhistleOut Australia, and an award winning tech journalist. She has been writing about the Australian telco industry, and consumer technology for over five years, and has been known to tell her Uber driver which phone they should upgrade to next.

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