Uhh because these phones are freaking expensive and if something were to happen and we wanted or needed to exchange it, OOPS! Sorry no can do cuz I didn't get insurance.... << don't think soo
I'm not sure why people would pay for the warranty...or phone insurance for that matter. My phone broke once, Verizon replaced it without any questions. Sure we walked through some troubleshooting steps...but that is it. I unrooted and sent them the damaged phone.
Well I must have been a special case then because I got a new phone for free, without the purchase of a warranty or insurance.....Good Luck to all!