Trying to decide what's best, Applecare or insurance through AT&T (I guess $7/month right).
How many of you plan on getting Applecare? I like my phone "naked" so I believe I need some kind of "safety net".
Like all insurance plans, it depends on how much coverage you want. To be fully covered, I'd recommend you get the AppleCare Protection Plan (aka AppleCare+, AC+, APP) as well as AT&T's insurance. It'll cost you $99 for enrollment of APP and a $79 deductible per claim (with a 2 claim maximum). Use APP for any accidental mishaps, as it's cheaper to repair/replace through Apple. For loss/theft, you'll use AT&T's insurance, and pay the $199 deductible.
Another nice point, is that AC+ comes included with tech support for two years.
You could also go with SquareTrade. SquareTrade (ST) covers you up to the purchase price of the device. So if you break your screen or drop it in water, you can still go to a genius bar and have them replace it for $329, and ST will send you a check. That means with ST, you can potentially have your iPhone fixed many more times than AC+. For instance, if you crack your screen, it's only $129 for a replacement through Apple. For a $750 iPhone, you could have your screen replaced 5 times! If you crack it a sixth time, ST will send you the remaining $100 that you're insured for, and you'd pay the final $30. Sweet deal.
Also know that you can cancel your AC+ or ST warranty at any time, and they'll send you a prorated amount back. Therefore, if you have AT&T Next like I do, when you upgrade the next year, since AC+ isn't swappable between devices, you can call Apple (or ST) and get a ~$50 refund to apply to your next upgrade's AC+.
I'm on AT&T Next. No point.
12 months from now I'll have an upgrade and still be under factory warranty.
A lot can happen within 12 months.