This. I've been using iPhones since the first one a week after launch. I have needed 1 replacement and I paid $199 for it. So I would have paid $100 x 3 (for 3 phones) plus a $50 deductible for 1 replacement is $350. As it is, I've paid $199. I'll continue to take my chances.
As for durability, my 2 year old daughter grabbed my phone off my nightstand and, since she wanted it downstairs, threw it off the upstairs landing onto the tile floor on the first floor. Cracked the bumper case, but the phone was fine. Fastforward to yesterday, I'm now using the phone with no bumper. She (now 3) was using it to look at pictures. She was leaning over the back of a recliner and dropped it 3 feet onto the same tile floor. She brought it to me for inspection and still no breaks. Apple makes a great product.
Hilarious, thanks
Squaretrade is a few dollars cheaper but you have to send your phone in to them for repair. I had to do this with my iPhone 4 and I didn't get it back for 5 days. This time around I'll be going with AC+ so I won't be without a phone that long.
Squaretrade has a coupon for $35 off of a new iphone warranty (for iphone 5) that you can get from their facebook page.
EDIT: oops sorry, I see this has already been posted.