It's really a disaster waiting to happen. We enter into 2-year contracts with mobile providers, then tote around a fragile piece of glass and plastic that, if dropped, will cost upwards of $500 to replace. Mobile phone insurance has been around for a while to alleviate some of this concern, but one of the most popular phones out there, the iPhone, has not been covered under AT&T's insurance offerings. Well, soon there will be an option.
The upcoming MobileProtect service will cost a whopping $13.99 per month, but it's basically just the same Asurion-serviced protection you get for any other smartphone. On other smartphones, these plans usually cost $7-10 per month. The deductible you then have to pay for a replacement phone are pretty high. They will range from $99 for the low end model (currently the 8GB 3G model) up to $199 for the high end model (currently 32GB 3GS).
As is the case with mobile insurance, it has to be purchased within 30 days of getting the phone. A new twist here is that you will buy the insurance plan through the iPhone App Store, and the charges will go through Apple. The price is high, but it is an option for those among us with both a love of gadgets, and butterfingers.