A year after its introduction, the iPhone still differs from many competing devices on one point: it lacks carrier-supplied insurance, meaning that a drop, spill or other mishap can result in total device replacement. The iPhone is notably absent from AT&T’s wireless phone insurance (other excluded devices include the Palm Treo 750 and BlackBerry Curve 8310), and rumors indicate that a forthcoming expansion of AT&T’s smartphone coverage will also exclude the iPhone.

With the introduction of a new iPhone likely nigh, it’s a good time to review the current options for protecting your purchase:

Manufacturer defects

AppleCare The AppleCare Protection Plan for iPhone, priced at $70, extends hardware repair coverage to up to two years from the original purchase date of the iPhone, and must be purchased covered under Apple’s One-Year Limited Warranty for iPhone. AppleCare won’t cover against liquid damage, theft and accidental physical damage, however — only against “defects.” Essentially it simply extends the standard one-year warranty.

In fact, the AppleCare terms and conditions state specifically that the plan does not apply to:

“Damage to the Covered Equipment caused by accident, abuse, neglect, misuse (including faulty installation, repair, or maintenance by anyone other than Apple or an Apple Authorized Service Provider), unauthorized modification, extreme environment (including extreme temperature or humidity), extreme physical or electrical stress or interference, fluctuation or surges of electrical power, lightning, static electricity, fire, acts of God or other external causes.”

Accidental damage

Credit card protection An oft-overlooked option. American Express Gold Rewards Card includes a purchase protection plan that will repair or replace eligible items, or reimburse the amount you charged to the Card for covered items, up to $1000 per Occurrence, if they are stolen or accidentally damaged up to 90 days from the date of purchase.

Meanwhile, with Visa’s purchase security, “virtually everything” you purchase with your covered Visa card is protected in case of theft or damage for the first 90 days from the date of purchase. The plan allows you to replace or repair your purchases, get reimbursed for eligible items, and file claims online. Note that there is a $500 per claim maximum. MasterCard also offers a similar 90-day program,.

Device insurance coverage Several firms offers “warranty” plans similar to AppleCare for the iPhone (accidental damage not covered), as well as more expensive plans wherein accidental damage is covered.

SquareTrade offers a “CarePlan for the iPhone that mimics AppleCare and costs 10% of item price - $49.99 - $59.99 for the iPhone. The company says “If something does happen, we’ll either fix it, or pay you the full $499-$599 that you spent on the phone — All within 5 days. Guaranteed. Like AppleCare, this plan does not protect against accidental physical damage.”

Accidental damage protection from SquareTrade costs about $50 more.

WirelessSafeguard also offers a accidental damage protection, though it’s price makes it less than attractive. The coverage costs a little under $100 per year for most iPhones, with deductibles ranging from $150-$230. For that combined price, you can obtain a refurbished iPhone (if you can find stock).

Do-it-yourself Several third-party companies sell replacement iPhone screens and other parts that can be user-installed, and we expect this scenario will persist with any newly introduced iPhone models.

With regard to screens, the iPhone components most likely to be damaged, PDAParts sells the complete replacement screen for $150 and has a how-to video for self-installation. iFixIt sells the display assembly for $200, and also sells all the required tools: Heavy-Duty Spudger, Metal Spudger, iPod Opening Tools, Spudger and a #00 Phillips Screwdriver. Installation is listed as “Difficult.”

Note that by replacing the screen yourself, or having a third-party perform the repair, you may violate Apple’s warranty. The warranty does not cover “damage caused by service (including upgrades and expansions) performed by anyone who is not a representative of Apple or an Apple Authorized Service Provider.”

Meanwhile, an Apple FAQ states that if you own an iPhone and it requires service for any reason other than the battery (which costs $86 total to replace), Apple will repair your iPhone for the service fee listed below, plus $6.95 for shipping and handling:

• 4GB: $199
• 8GB: $249

Presumably this includes liquid damage, though Apple states “Service may not be available if your iPhone has been damaged due to accident or abuse.”

Feedback? info@iphoneatlas.com.