You only pay for accidental damage, but it's significantly less with AppleCare+Not sure what the policy is with Apple Care, I seem to have read several times of people reporting having to pay up $ for a fix even with Apple Care on it... What I did was get a 4 year every thing covered insurance from the store I bought it at, which was a much better deal cause I payed $0 when things had to be repaired/replaced.