But to get the new phone at that price you would have to sign a 2 year contract, the insurance does not renew your contract. So if you want to get technical, that phone you got for $20 less is potentially going to cost you $175 more, because that's what it costs to get out of a verizon contract (which you will be locked into for 2 years from whenever you got it). If you wanted to buy the phone new, without a contract you could have, but it would have cost you between $250 and $300. Also, most insurance companies have a rush service for an extra $15 or so, where you usually get your phone in a day or two. If you haven't had you phone very long, or haven't generated enough revenue, they won't even let you get the discount on a new phone by renewing your contract. If that happens and you don't have the insurance, then you have to buy the phone for full retail value ($250-$300 aka screwed).