Well, you are going to be phoneless for the remainder of the contract you will still be paying on.
Let me guess, ya did not read how the insurance works. Just like a car, there is a deductible to be paid
You had an iPhone worth $550 stolen ($450 subsidized by Verizon and $100 paid by you) and it was stolen from your possession. Thankfully you had insurance and now to replace this $550 device you will only have to pay $169. Seems like a deal to me.
Did you set up "Find My iPhone" when you first got the phone? That would tell you exactly where it was and would allow you to remotely lock the phone and/or erase all info on it.
So when Mr or Mrs Brooklynite110.
When you get into a car accident what does the car insurance company do to either fix or replace your car?
They make you pay a deductible.
INSURANCE is the same no matter what your insuring.
That is in the Fine Print in the Terms and Conditions of the Asurion IPhone Insurance. Your only other option is to wait until the IPhone 5 comes out this Fall with IOS 6.0, and then pay Full Price for it. Just FYI.
P.S. I don't know how much Apple will be charging Full Price for the IPhone 5, but what I can tell you is that Full Price for the IPhone 4S starts at $649.99 for the 16 GB Model and goes up $100 for each larger GB Model (for example the 64 GB Model is $849.99 at Full Price!).