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Square trade. Accidents happen even if one is super careful. Small charge for three years of freedom from worry!
 
Squaretrade here, they gave me full purchase price on my iPad 1 after I dropped and cracked it. I got my squaretrade investment back when I sold the replacement iPad 1 on eBay befor the iPad 2 came out, people pay a premium for an item still under warranty. bought it the first day for my iPad 2, lucky for me I haven't had a neednfor it yet but it's worth the piece of mind. AppleCare won't cover accidental damage.
 
SquareTrade. Better coverage than AppleCare by far for the same price or less, since it covers accidents and liquid damage as well.

"Being careful" isn't always enough. I'd rather have the peace of mind and the additional value on resale.
 
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