Personally I think that you should never buy insurance for items that you can replace with cash. You have insurance on your house and car because you can't replace them out of pocket. Just do the math: Add the premium for the life of the contract, plus the deductible to replace the phone. I bet you can buy a lightly used Droid off of eBay or craigslist for less than that, especially in a few months. If you break phones all the time, just take better care of your stuff. I'm careful with my stuff and have never broken one.