There are many different insurance options. The one Verizon offers is not the best value. Best buy has a good insurance that, while it is more expensive, you can swap phones with no deductible. (I am unsure on exact prices for best buy). With the insurance that Verizon offers, Asurion, you can pay $5.18 a month and if you lose the phone, it gets stolen, broken, or water damaged you're covered with a $99 deductible. The $6.99 insurance is similar but it ads an extnded warranty (beyond the 1 year manufacturers warranty) where if there is a malfunction that's not from physical or liquid damage you can swap phones for free. There are also other third party insurance options such as Global Warranty Group, etc where you pay a 2 year premium for $100 then pay a $75 deductible to get a new phone.