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.