FYI, I had a Blackberry Storm replaced by the insurance last summer. They send remanufactured phones that I believe showed a Philippines location. First phone wouldn't charge. The second one had a touch and click screen didn't work perfectly but I kept it anyway. A couple of weeks later I then received notices that I hadn't returned the old phones and was potentially liable for a non-return charge. They give you like 15 days to return it. I called noting that I'd returned both the original and first replacement phone. The representative was very polite and told me that it takes about 30 days for returns to be processed and entered into account records. In other words, 2 weeks beyond the point where they start hounding you for not returning the phone. She said she'd note it as returned. I commented that given the time periods, they must get calls constantly from people who have returned phones but still got non-return notices. Without explicitly saying so (they are monitored after all) it was clear that I was not the first person to call.
I will keep the insurance on my new iPhone for ~ 6-9 months after which I think putting $10 a month into your own fund makes a lot more sense. As the last poster points out, a refurbished phone at the store can often be cheaper anyway.
I assumed when I purchased the insurance that I would receive a new replacement phone. My bad for not reading the details, but refurbished phones are simply not the same as new.
