Call customer Loyalty at Verizon. They are a completely different group. Tell them it is cheaper to leave them and pay a penalty and get a new Iphone with ATT then to spend 300 for a replacement. Ask them to give you a deal on Moto Droid since the new one is coming out and it will be discontinued. Ask why do they treat new customers better than ones who have been loyal. Offer $99 to get a new one and $50 for a refurbed and see what they say. Tell them you will pay for insurance if they give you a break. Make it all your fault, don't blame them etc. Let me know what happens. By the way, had a similar situation, I got a from Droid and a deal on HTC Incrediable, plus when I got new phone for kids, I got a deal all by calling this part of Verizon, good luck.