There seems to be a lot of confusion over this on the forums so I thought I would post this so people can understand what happens when a phone has a problem. To begin with all phones have a 1 Year Warranty. If purchased through a direct or authorized indirect the phone will show on VZW's system that it has said warranty. When a phone is under warranty, per the manufacturers, VZW will replace it with a certified like new replacement. This a phone the manufacturer has refurbished and then Verizon has tested to make sure it functions. Unfortunately this system isn't perfect and some fall through the cracks, but from experience and doing tech support 90% of these phones are good and will last a long time. If a phone is being replaced under any kind of warranty and a replacement phone of the same model or like model (I.E. Droid 2 to Droid 2 Global) is not available an automatic Substitution occurs. Either the SKU will auto-populate on the VZW System or it will give a list of phones that the customer can choose from that are "Like" the phone they are replacing. In rare cases, depending on customers history with VZW, lenght of time with VZW, etc... a different phone can be exchanged. This requires approval and everything has to be in perfect order, including the customers acct, or it will not occur. For Asurion (insurance) the phone must be Lost, Stolen, Physically damaged, or Water Damaged. If the phone does not fall into one of these categories 99% of the time Asurion will not replace it, even outside of warranty. When Asurion replaces a phone it is there decision of what they replace it with, which depends on there stock and availability (not VZW's). Now, there are three options you can add to your phone (unless you are in Florida then you only get Insurance). TEC - Total Equipment Coverage - this is both an extended warranty and insurance. Why is this important? Your phone has a 1 year manufacturer warranty. With TEC your phone is "ALWAYS" under warranty as long as TEC remains on the line. As long as TEC is on the line you can also switch to CPE (Customer Provided Equipment) and have a phone that is under warranty (TEC is per line, not phone). TEC also includes insurance for Lost/Stolen/Physically Damaged/Water Damaged phones. TEC Cost - $6.99/month Extended Warranty - This gives you the extended warranty on the line. I believe it is Per Line not phone, like TEC, but don't quote me on that. Extended warranty gives you a warranty past the original manufactuer warranty. Extended Warranty Cost - $1.99/month Insurance - As stated above only covers Lost/Stolen/Physicall Damaged/Water Damaged phones Asurion Cost - $5.18/month Asurion will refer people back to Verizon if they feel it is a warranty issue and not insurance. This includes if the phone is outside of warranty. Also, you have 2 more days to add insurance or TEC to "ANY" line as long as you bring the phone in to VZW Store to see if it has any damage. And for those smartalics who will ask what happens if a phone is 1 day old or a week old. Under Verizons return/exchange policy it will be replaced with a new phone. If purchased from an authorized Indirect Verizon will refer you to the indirect to get a new phone.