Mobile phone claims are costing more as increasingly complex technology is built into the devices, a New Zealand insurer has warned.

IAG-owned State Insurance says last year it paid out $NZ11 million ($10.09 million) towards 11,300 mobile phone claims.

Data reveals accidental damage is the leading cause of claims (81%), followed by lost phones (12%) and theft (5%).

“Claim costs for mobile phones have risen about 13% in the past year,” State EGM Claims Wayne Tippet says, indicating that the “advancement of mobile phone technology” is a contributing factor.

“We’ve found that about 60% of mobile phone claims are settled for repairs and 40% are settled for replacements.”

A State survey revealed 40% of New Zealanders who needed to replace a phone had dropped it on the ground, resulting in unrepairable damage.

“Late-model phones often have water-resistant protective features and can survive falling into the toilet, or being exposed to a rainy downpour – events we’ve commonly seen claims for in the past – but damage incurred by hard surfaces is not so forgiving,” Mr Tippet said.