One thing to keep in mind is that while the phone might be cheap when you first sign up for a plan, it will be much more expensive to replace. Since they already have you signed to a contract, they won't give you the very steep discounts they give new subscribers and will instead charge the infladed "regular" price.
My POS phone was $30 when I signed up, but would now cost $160 to replace.
I almost dropped the insurance until I saw my boss lose two blackberries in a month. Got me thinking.
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