Paul Sanchez
Telstra, an Australian telecommunications company, offers phone insurance to its customers. The insurance, called Upgrade and Protect, is a $15 per month add-on that allows customers to upgrade their phones early in exchange for a fee. While some customers may find this convenient, others argue that it is not worth the cost, as it does not cover lost or stolen devices and requires a commitment to a new 24-month plan. Additionally, there are limited circumstances under which Telstra will repair or replace a device, and customers may be required to pay a high excess fee. With these limitations in mind, potential customers should carefully consider their options before signing up for Telstra's phone insurance.
| Characteristics | Values |
|---|---|
| Name of the insurance program | Upgrade and Protect |
| Cost | $15 per month |
| Coverage | Covers eligible Postpaid phones and tablets |
| Screen replacement | Two screen replacements per device within a 12-month period |
| Damaged device | Covers damaged devices, but with an excess fee of $249 |
| Lost/stolen devices | Does not cover lost or stolen devices |
| Upgrade | Allows customers to upgrade to a new device for a fee |
| Cancellation | Can be cancelled at any time |
| Credit assessment | Requires a credit assessment upon purchase and when redeeming a new device |
| Device ownership | Title to the returned device passes to a second-hand device vendor |
| Device replacement | Provides a 'new or refurbished' item of the same or similar model |
| Warranty | Does not require customers to annihilate their device to get a replacement |
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What You'll Learn
Telstra no longer offers phone insurance
Previously, Telstra offered Stay Connected Advanced for device insurance, but this was retired in July 2020 and is no longer available to new customers. The change is due to regulation adjustments in 2021 by the Australian Securities and Investments Commission (ASIC), which impacted add-on insurance products offered by telcos.
Upgrade and Protect has been criticised for favouring Telstra more than the consumer, as customers must commit to buying a new phone after paying the excess. Additionally, the service does not offer a new device, instead providing a "new or refurbished" item of the same or similar model.
For customers who are accident-prone and go through devices quickly, Telstra's StayConnected service may be a suitable alternative. It allows customers to replace their device up to two times a year for any reason, not just damage or loss. However, there is a service fee of up to $180 for smartphones and tablets, and customers will not receive a new device.
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Upgrade & Protect: a $15/month alternative
Telstra no longer offers mobile insurance programs to customers. However, it does provide an alternative called Upgrade & Protect, which costs $15 per month. This service is a mix between phone insurance and an early upgrade path.
With Upgrade & Protect, you can return your phone or tablet to Telstra and upgrade at any time, regardless of its condition. While all further handset repayments are waived, you'll need to immediately commit to buying a new device on a 24-month term. If you've had your phone for more than 12 months but less than 24, and it's in good working order, you can upgrade to a new device for free. Good working order means that the device functions as intended and is free from physical damage, except for light wear and tear.
You can make a maximum of two damage redemption upgrades or screen replacements per device within a 12-month period. If your device is damaged, you'll need to pay an excess fee of $249. Telstra won't repair your phone; instead, you'll be asked to sign up for a new plan with a new phone for another 24 months.
Upgrade & Protect may be a good option for accident-prone individuals who frequently need to replace their devices. However, it's important to note that you may lose out on a few hundred dollars in sale value, and the longer you wait to break your phone, the worse value Upgrade & Protect becomes. Additionally, it's worth considering that Upgrade & Protect favours pricier devices, and there are alternative insurance options available that may offer better value depending on your device.
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Upgrade & Protect: poor value for money?
Telstra's Upgrade & Protect is a $15 per month add-on service that allows customers to upgrade their phones early in exchange for a fee. While it is marketed as a type of insurance, it does not cover lost or stolen devices, and customers are required to pay an "excess" of $249 for a damaged device. Additionally, customers must commit to buying a new device on a 24-month plan, making Upgrade & Protect a potentially poor value proposition, especially for those who do not break their phones early on.
One of the main drawbacks of Upgrade & Protect is that it may result in a financial loss for customers. When upgrading, customers are required to return their old device to Telstra's second-hand vendor, forfeiting any remaining ownership rights. The vendor determines the value of the returned device, which may result in a lower-than-expected reimbursement. Furthermore, customers are responsible for shipping costs if the device is returned to them due to non-compliance with the redemption process.
Another concern is the limited circumstances under which Telstra will repair or replace a device. Screens can be replaced a maximum of two times per device within a 12-month period, but customers must pay an additional fee ranging from $59 to $270, depending on the device. For other types of damage, Telstra may swap the phone, but not if it has water damage or is extensively broken.
Upgrade & Protect may be a good option for customers who frequently break their phones and want the option to upgrade early. However, for those seeking traditional insurance coverage or a straightforward repair/replacement service, Upgrade & Protect may not offer the best value. It is important for customers to carefully consider their needs and evaluate if Upgrade & Protect aligns with their expectations of an insurance policy.
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StayConnected: a 'swap, replacement and restoration' service
Telstra no longer offers new mobile insurance to its customers. However, it does provide an alternative called Upgrade and Protect. This service is a mix between phone insurance and an early upgrade path. For a monthly fee of $15, customers can upgrade their phones at any time, regardless of their condition. While this may be a good option for some, it's important to note that it may not be the best value, especially if you're looking to upgrade your phone.
Telstra also offers StayConnected, a swap, replacement, and restoration service for mobile phones and tablets. This service allows customers to replace their devices up to two times a year for any reason, even if they are not damaged or lost. The service fee for this option is $100 for non-smartphones and up to $180 for smartphones and tablets. One downside is that customers are unlikely to receive a new device, as Telstra provides a 'new or refurbished' item of the same or similar model. However, StayConnected may be a good option for customers who are accident-prone and go through devices quickly.
It's worth noting that Telstra no longer offers insurance for lost or stolen devices, which is a significant downside for customers seeking comprehensive protection for their devices. Additionally, there have been reports of high excess fees and non-transparency in Telstra's handling of insurance claims, with some customers feeling they have been treated unfairly.
Overall, while Telstra's StayConnected service may be a viable option for customers who frequently need to replace their devices, it is important to carefully consider the terms and conditions, as well as alternative protection plans, before making a decision.
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StayConnected: worth it for accident-prone customers?
Telstra no longer offers mobile insurance programs to its customers. However, it does provide an alternative called Upgrade and Protect, which is a $15 per month add-on that allows customers to upgrade their phones during their repayment period. This service is a mix between phone insurance and an early upgrade path.
Upgrade and Protect is available for eligible Postpaid phones and tablets. It covers broken devices, but there is a $249 excess fee for a damaged device. It is important to note that lost or stolen devices are not covered by this service.
Previously, Telstra offered StayConnected Advanced, which was retired in July 2020. Existing customers who signed up before this date can still use this service, which allows eligible devices to be repaired, replaced, or swapped up to two times per year. The cost for repairing broken screens is $59, while the cost for replacing damaged devices ranges from $190 to $270.
StayConnected may be worth considering for accident-prone customers who frequently need to replace their devices. It allows customers to replace their devices up to two times a year for any reason, not just damage or loss. The service fee for non-smartphones is $100, while smartphones and tablets cost up to $180. However, if the device fault is covered by the manufacturer's warranty, there is no service fee charged.
While StayConnected may offer some peace of mind for accident-prone customers, it is important to remember that you can still claim repairs for a device under its warranty, even without a protection plan. Additionally, the downside of StayConnected is that you are unlikely to receive a new device as a replacement, as Telstra provides a 'new or refurbished' item of the same or similar model.
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Frequently asked questions
Telstra offers Upgrade and Protect, a \$15 per month add-on that lets you return your phone or tablet to Telstra and upgrade at any time, regardless of the condition it's in.
The plan covers eligible Postpaid phones and tablets. It allows a maximum of two damage redemption upgrades or screen replacements per device within a 12-month period. It does not cover lost or stolen devices.
Telstra's Upgrade and Protect plan has been criticised for being of poor value, especially when it comes to upgrading. The plan also requires customers to commit to buying a new phone after paying the excess, which is not typical of insurance policies. Additionally, Telstra staff have been trained not to use the word "insurance" when discussing the plan, and the company itself has stated that it is not an insurance company. Therefore, it may be worth considering other insurance options for your phone.
