Through December 25th, SquareTrade is offering 35% off their warranties with coupon code SECRET (up to $35 discount). A 2-year warranty for the iPhone is $124 - $35 off w/ code = $89. Covers normal use issues and drops and spills, including full immersion, which AppleCare does not.
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i think it's better off buying the more expensive warranties at bestbuy or your carrier, it's so much more convinent to go to the store and grab another phone if yours is broken.
with squaretrade you have to send the phone back in, they have to decide then if the damage is covered warranty. and send it back to you. you're without a phone for 3-5 weeks.
i have squaretrade now for my pre and i never used it, i called once and the first thing they asked was to get out of trying to cover the oreo effect. bleh