The next 10 or so replies where for my last question till I found out about this: http://www.apple.com/support/iphone/service/faq/#warranty7 Out-of-Warranty Service If you own an iPhone that is ineligible for warranty service but is eligible for Out-of-Warranty (OOW) Service, Apple will service your iPhone for the Out-of-Warranty Service fee listed below. iPhone 4 Out-of-Warranty Service 16GB & 32GB $199 iPhone 3GS Out-of-Warranty Service 8GB, 16GB & 32GB $199 iPhone 3G Out-of-Warranty Service 8GB & 16GB $199 Original iPhone Out-of-Warranty Service 4GB, 8GB & 16GB $199 A $6.95 shipping fee will be added if you arrange service online or by calling Apple Technical Support. All fees are in US dollars and are subject to local tax. For example, an iPhone that has failed due to damage or liquid damage is eligible for Out-of-Warranty service. However, certain damage is ineligible for OOW service, including catastrophic damage, such as the device separating into multiple pieces, and inoperability caused by unauthorized modifications. Why would you wanna get any insurance and pay $150 to $200 (Price for the plan and the deductible) when you can get a new one from apple for $199? I guess like someone said if you are clumsy as heel and know your gonna break your phone multiple times within a year or two then I guess insurance may be a better route, but for those of us who have a great track record at not damaging our phones (had an iphone for 3 years and nothing yet) then passing on insurance and paying the 199 just in case I think is the better route for us.