Through August 31st, SquareTrade offers a 2-year warranty for the iPhone (including iPhone 4) for $90. Covers normal use issues and drops and spills, including full immersion, which AppleCare does not.
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Fine print: There is also a $50 deductible for drops, spills, water damage making it $140 total.
They all have deductible. If they didn't every jerkfoff who scratches his phone will dunk and swap.
How bout lost phones?
#3 That's covered under your "yo fault" policy.
Which is covered with Verizon's insurance.
That's about 90 more than I'd be willing to pay for a free iPhone.
Extended wrtys are almost always a ripoff.
They don't cover lots of stuff; usually have deductibles. And even if you ARE officially covered - they usually sleaze their way out of paying up by making it terribly difficult to work with them. Such as: making you ship things to them with 6-8 week turnarounds for 'evaluation', deny claims without good reason so you have to fight with their claims department; require you mail them extra things; replace your device with 'refurbs' of dubious quality/etc. All while you're without a phone.
Not worth it.