I am in the market for an iPhone and am struggling with the decision about Warranty/Insurance. There are dozens of threads on here, but the few valuable comments are dispersed among these threads. Thus, the point of this thread is to consolidate the information into 1 user-friendly thread. Below is what I have learned. There is still quite a bit of missing information, so I’d appreciate any helpful replies. I’ll later update my post to incorporate these comments. Thanks! Possible problems with an iPhone: -Screen crack -Hairline cracks in casing -Malfunction of components -Software malfunction -Water damage -Battery replacement Possible insurance/warranty programs: -AppleCare -SquareTrade -Safeware -BestBuy -Credit card company -Home/Auto insurance company AppleCare: http://www.apple.com/support/products/applecareiphone.html -Cost: $70 regardless of model -Term: adds an additional year of hardware support. Extends phone support until 2 years from purchase. -Covers: Parts, cracks in casing, & software functionality, battery suffering from 50% loss (though some users have said Apple is liberal about this). -Pros: no deductible for service, convenient service (if you live near an Apple Store) -Most people recommend not getting AppleCare until 360 days after purchase. SquareTrade: http://www.squaretrade.com/pages/iphone-landing24 -Cost: $96 for the 16GB model (price varies by model) + $50 per claim -Term: 2 years -Covers: Everything under AppleCare + accidental drops and water damage. [limited software coverage] -Pros: gives you money so that you have the option of getting a different phone in case your iPhone is not fixable; free shipping Safeware: http://www.safeware.com/ -Cost: $87/year (for 16GB 3Gs) -Term: 1 year -Covers: Everything under SquareTrade + theft, fire, flood, power surge. [limited software coverage] -Pros: a lot of coverage? Best Buy: http://blacktie.geeksquad.com/ -Cost $15/month -Covers: All accidental damage (except water) -Pros: convenience? Get a loaner phone while original is being repaired Credit Card Company: -AMEX Gold covers up to $1000 for first 90 days? extend warranty? -Visa & Mastercard covers up to $500 for first 90 days? extend warranty? [this section needs more info] Insurance Companies: -USAA’s home owner and renter’s insurance covers iPhones stolen, lost in fire, or auto accident -State Farm sells iPhone insurance for $35-45/year (dependent on state and iPhone model). Covers theft, breakage, water damage (but not battery or software) Noncoverage: -If you don't have one of the more "premium" coverage plans, Apple will replace your broken iPhone with a refurbished one for $200. Again, please post helpful comments & information below. Hopefully this will turn into a good resource link for others. Thanks!