Insurance is always a good thing, especially when it comes to phones. However, if you decide to get insurance through AT&T and other wireless providers for your iPhone, then you may be just wasting money.
When my fiancé’s Wi-Fi broke on her iPhone 4S, she did what every sensible customer would and went to the AT&T store. She was hoping that because she has insurance through the carrier that she could get it fixed or possibly get a replacement.
But that was not the case.
Because the iPhone is an Apple product, normal insurance does not cover it. The clerks told her that normal insurance through them does not work on iPhone devices and that she now needed to purchase AppleCare in order for it to be covered. But since the matter was ex post facto, her phone was basically useless when it came to Wi-Fi. Her only other option was buying a whole new phone entirely.
So if you plan on getting an iPhone, dump the superfluous $84 a year insurance. iPhones typically should already come with a 90-day to one year warranty. If you feel the need to extend beyond that, then the AppleCare option may be the way to go for a price of $99 a year.
Be warned however – if your iPhone needs to be replaced entirely, you will need to pay an additional $79 fee.