Telus revamps Device Care insurance program, discontinues $12/month Premium option

Ian Hardy

January 18, 2016 5:45pm

Telus has once again revamped its device insurance program, deciding to discontinue its top tier option.

The first round of changes to Telus’s Device Care program came last year when the carrier increased its price by $1 on both tiers to $7 and $12 per month, respectively. The $12 Telus Device Care Premium option has now vanished, which covered lost and stolen devices. The Premium tier also gave customers the option to quickly receive a replacement device for a charge between $80 to $200.

Those looking for additional insurance with Telus have one option available at $7 per month, or an additional $129 per 2-year smartphone term. Device Care is available for all devices except for the iPhone, as Telus also distributes Apple’s official AppleCare+ program. The basics of the insurance policy remains the same, covering up to two incidents of accidental or liquid damage. With the change, the Device Care enrolment period has doubled from 30 to 60 days after purchasing a handset from Telus.

With the new plan, Telus will ship out a replacement device to the next day to ensure “minimal downtime,” but there are some new charges to be aware of. According to the terms and conditions, Telus notes that a $29 “malfunction service charge” applies to all defects, and a $79 “replacement service charge” covers damaged devices.

Telus also notes the following situations under which Device Care does not apply:

– A lost or stolen device
– Changes or enhancements to your phone
– Abuse, misuse, or intentional acts
– Problems with the phone before your enrolment was in effect
– Failure caused by computer viruses
– Accessories (unless part of the failed device)
– Any cosmetic damage

According to an internal document we received, existing Device Care and Device Care Premium customers are not affected by the new price changes, and will continue to be supported by the original terms and conditions.

We have reached out to Telus for further clarification as to its reasoning for removing the Premium tier.

Update: Here’s what Telus had to say about the change.

TELUS continuously reviews our products and services to make sure we have the best solutions for our customers. After hearing from our customers, we’ve made a few changes to our Device Care program. 

The upfront price of TELUS Device Care remains at $129, and customers have the option to sign-up on a monthly basis for $7/month, but starting today, customers have more time to enroll in the program – we’ve doubled the eligibility period from 30 to 60 days. 

To reflect the increasing cost of devices provided by manufacturers, the claim fee for device damage is now $79. We’ve also introduced a new manufacturer’s malfunction claim fee, which is $29. Of note, if a customer experiences a manufacturer defect with their device, at any time, TELUS Device Care gives customers the option to take advantage of next day replacement instead of the standard manufacturer’s repair process which often takes longer. This has been in place since TELUS Device Care launched in 2014.

The changes come into effect today, January 18, 2016, and only apply to new customers moving forward. This means existing customers won’t see any changes to their previous Device Care choices. 

Source Telus
  • Ken

    Insurance is a money maker for Telus and I would recommend people stay away from it and that applies to any electronics.

    • J nguyen

      How does Telus make money off insurance when it is sold through eSecuritel?

    • MassDeduction

      Sales commissions that Telus receives, at a minimum, I suspect.

    • Roger

      The rep I got my Note4 from pushed it pretty hard.. I went for it just because he was giving me enough discount off the already already sale price. I kept it for a couple of months and got a replacement phone as the initial one’s back button didn’t work very well. I didn’t have to pay the $29 fee, though.

  • hardy83

    “– A lost or stolen device– Changes or enhancements to your phone
    – Abuse, misuse, or intentional acts
    – Problems with the phone before your enrollment was in effect
    – Failure caused by computer viruses
    – Accessories (unless part of the failed device)
    – Any cosmetic damage”

    Gotta love the restrictions being obscure enough that they could deny you the coverage with every possible scenario other than the phone dying of old age. Of course I’m sure even they could say it was a pre-existing condition as bullet 4 points out. lol

    Ahhh insurance.

  • xanth18

    Those restrictions make the plan useless. Telus will ALWAYS states one of those as the reason they’re not paying out.

    • Roger

      I got my replacement device within two days after I told them my back button doesn’t always recognize my pressing it. I’m not complaining.

  • If Bell changes their plan to be like this, there is no point in getting the insurance. So far the Bell insurance covers EVERYTHING.

    This one reminds me of the old Rogers insurance. I hope the other carriers don’t follow

    • MoYeung

      Depends on which Bell Smart/Phone Care plan you have…

  • MassDeduction

    Get a good case, save the monthly/annual fee, and buy a used phone if you manage to break your device. Problem solved.

    • Tyrannosaur3464

      So you buy a GS6 Edge (like a dummy) break it, like it was intended to, and get a swap device for $80?

      What if I word it like this. You buy a new BMW M3, you get in an accident for speeding, and you pay your $500 deductible on $10,000 worth of damage.


    • MassDeduction

      What you’ve described is not a parallel. Car insurance is a better deal for the consumer because it costs less in relation to the device (probably because car insurance is more widely held than device insurance, reducing the risk to the insurer). Device insurance costs $100-180 per year on devices that cost typically $400-1300. Would you pay car insurance on a BMW M3 if it cost $10K+ per year and only covered damage to the car (no coverage for things you might damage with your car)? That’s effectively the same proposition as what device insurance provides at the rates they’re asking.