You have options.

Lots of people have been asking for details, so here’s the full scoop on the SquareTrade warranty options that’ll be available for the new iPhone 3G:

For 12% of your iPhone’s retail price, you’ll get 3 years of coverage that comes with a 5 day service guarantee. Your phone will be fixed quickly, and if it’s beyond repair you’ll get cash for the full replacement cost so you can buy a new one. Or you can use the cash to buy a cheaper phone and spend the rest on snacks, extend a loan to an entrepreneur in a developing country, take up underwater basket weaving, or whatever.  No refurbs as replacements, no matter what.

So, here’s how it all stacks up. I threw in the specs on AppleCare too, because I know that’s what a lot of people will be considering since it’s the only thing available right in the store when you get your phone. But you have options:

If you think you might be accident prone or just not as lucky as this guy, check out Accidental Damage from Handling coverage. It’s a little bit of an extra expense, but it might end up saving you some heartache.

Personally, I’m really excited about the new iPhone pricing because I don't have AT&T yet... it only applies with a new 2-year contract with them.  So if you don’t get warranty coverage, you’re going to have to pay the full non subsidized price if you ever need to replace your phone (and make sure you type in the full replacement cost when you get a warranty quote so you’re eligible for the full amount of coverage). That’s $399 or $499 – a.k.a. a small fortune.

Update: Click here for most current information on SquareTrade iPhone coverage.