Overseas travellers losing out on travel insurance for mobile phones

TRAVELLERS are losing out on travel insurance when they misplace their phones or have them stolen on holiday.

Heading overseas? Leave your phone

TRAVELLERS are losing out when they misplace their phones or have them stolen on holiday, with most travel insurance companies not covering the cost to replace them.

American Express was the only insurer who will cover the full cost of replacing a phone, research has found.

Compare Travel Insurance investigated 20 of Australia's biggest travel insurance companies, including Travel Insurance Direct, Cover-More, and Virgin Money.

It found travellers who made a claim for a mobile phone they bought more than a year before usually lost around $500 when making a claim, based on a new phone costing $799 plus excess and depreciation.

The biggest losers were people who signed a long-term contract on a monthly plan more than a year before.

The research found if travellers haven't paid out their phone in full the insurance company may not pay out at all.

Compare Travel Insurance business development manager Natalie Ball said most travellers carry a smartphone overseas these days because it was the quickest way to snap and share their holiday moments with friends.

She said insurers will usually depreciate the value of any item you claim, and travellers should consider adding their phone as a specific high value item - or take an old phone.

"I wouldn't say that there was one insurer that was significantly worse than the others," she said.

"American Express was the only one that offered new for old replacement.

"They will probably look at how much you have paid for your mobile and the cost for a new one and you will get that value rather than depreciating the value of your existing phone."

Ms Ball said people don't often check the sub limits within their travel insurance policy.

"There might be a sub limit of $500 per item and you might have a phone worth $1000," she said.

"If your phone is two years old you're going to lose 50 per cent in value on top so the payout isn't going to allow you to buy a new phone."

Nearly all of the companies had an excess fee of $100. Virgin Money's was the highest at $150.

Insurance Council of Australia spokesman Campbell Fuller said insurers and their policies differ widely and people should shop around for the one that best suits their needs.

"Keep in mind that the cheapest policy is not necessarily the best," he said.

The companies researched were 1Cover, Amex, Australia Post, Columbus Direct, Cover-More, Down Under Insurance, Fast Cover, Good2Go, Insure4Less, InsureandGo, iTrek, KangoCover, On Tour, Qantas, Simply Travel Insurance, Southern Cross, Travel Insurance Direct, Travel Insuranz, Virgin Money and Woolworths.

When you won't be covered by travel insurance:

*If you leave your belongings unattended or out of reach

*If you do not report the loss or theft within 24 hours with a full written report

*Some insurance companies won't pay a claim relating to a mobile phone if you can't supply the International Mobile Equipment Identity

*If you can't prove the device belongs to you with an original receipt (photocopied, faxed or scanned documents will not be accepted)

*Some companies won't pay if a mobile phone, computer or jewellery is left unattended in a car

*If you are driving a vehicle you are not licensed to drive, such as a motorbike in Thailand

*Any claim where alcohol or drugs are a contributing factor