The Insurance Council says the sector is bracing itself for an influx of false claims following the release of the iPhone 6 this week, as people try to get themselves a cheap upgrade.
The council said New Zealand insurers expected phone-related claims to jump 25 percent in coming weeks - a common trend when new models are released.
Chief executive Tim Grafton said insurance fraud costs about $200 million a year and drives up premiums for those who follow the rules.
He said people who made a claim after the last iPhone came out, and do the same with this release, may be investigated further.
Mr Grafton said those caught could be denied insurance in the future.