I think people here are trying to help him. Put yourself in his shoes, Im sure you would look for the cheapest way to fix your phone as well. Not everyone is made out of money. Whats the difference between him signing up for insurance right now and making a claim in a month about his cracked screen as apposed to he cracks his screen in 1 month and calls about it the next day?
Yes, I would look for the cheapest (legal and ethical) way to fix my phone. That does not include defrauding an insurance company.
The difference is one is legal and one is not.
And Apple provides awesome customer service in that they offer a replacement phone for $199. That's $400 off the retail price.