I been reading in various areas in here and other forums that applecare is a waste of money. Ive owned 4 iphones from the 2g to this one and never have had to replace it. But I always have had applecare for all them. The biggest reason I do is because I do renew my iphone every year. Reselling an Iphone is so much easier when can put that its covered by applecare. I can usually get a higher price in my area cause people know the phone they are buying has this. I dont really look at as if its cost effective to buy versus what it costs versus repair. My insurance pays me if I lose my iphone or its stolen. My point of the post is that if you like getting the new iphone every year the applecare will help increase its resell value. I got 525 for my iphone 4 this year through craigslist and was told by the buyer the big reason was the applecare I had on it.