
Those of you who have a tendency to be a bit on the clumsy side, resulting in cracked iPhone cases or screens might find this offer interesting. We hope you will do the math, though, because although it's insurance for your iPhone, it comes at a rather steep price.
BGR is reporting that AT&T is set to offer, beginning June 6th, a new insurance service, called MobileProtect. It will be run for AT&T by Asurion. Not only is the cost $13.99 per month, there's a steep deductible as well: $99 for an 8GB iPhone 3G to $199 for a 32GB iPhone 3GS.
You also have to purchase it within 30 days of buying your iPhone, which means current owners are probably out of luck. AT&T is launching this service with the selling point of “Lack of iPhone insurance is a leading source of iPhone related customer complaints.”
All this time, we thought it was poor AT&T voice and data connectivity.

Is this a good deal? Hardly. There are quite a few cheaper alternatives. For example, if it's all about safety, we would recommend one of the
Ivyskin cases with a
touch-thru solid protective front. We've used them ourselves, and they protect solidly. You could also opt for an
Otterbox case, similarly with a touch-thru polycarbonate front.
If you would rather eschew a case, or cases so protective (and thus bulky), there are far cheaper insurance options. For example, Squaretrade's
third-party insurance costs $8 per month for 24 months, or $96 paid in full for an iPhone 3G. For a 32GB iPhone 3GS, it's $9.99 per month, or $144 paid in full for 24 months of protection. AT&T's plan amounts to $168 for a single year. You also have 90 days after purchase to sign up, 3x that for AT&T.
AT&T's plan does cover lost or stolen devices. SquareTrade's plans do not. However, your homeowners insurance should cover theft of an iPhone (you should check to make sure there's no exception or limitation for electronics); some renter's insurance plans will cover theft as well.
SquareTrade is just one example of ways to insure your iPhone outside of AT&T's plan. It would seem, based on that example, there are plenty of alternatives less costly than AT&T's.
Of possible interest to those who recently purchased an iPad: SquareTrade has a special running now of 20 percent off a coverage plan for the iPad with a 2 or 3 year term. The special pricing is $96 for a two year term (regardless of iPad type) or $136 for a 3 year term.