SquareTrade has sent us a little tip announcing its new coverage rates for the iPhone 3GS. As any iPhone owner knows, when you drop your phone, your heart may momentarily stop. We all know most warranties also don't cover drops and spills. This is where SquareTrade steps in. For only $99 you'll receive 2 full years of coverage. Compare that to AT&T's rumored new iPhone protection plan, and you've got yourself a deal with SquareTrade.

SquareTrade had this to say about their warranty pricing compared to AT&T's:

"Anticipating that Steve Jobs will announce a new iPhone on Monday, I wanted to let you know that SquareTrade, today announced a new $99 iPhone Warranty. Unlike Apple Care, SquareTrade covers drops and spills and is much less expensive than the rumored AT&T iPhone insurance – reported to cost $14/month with has a painful $99 - $199 deductible ... here's a quick breakdown of how much AT&T's insurance costs relative to SquareTrade:
Apple iPhone 3GS:
One device failure (drop, breakage etc) in two years:
  • AT&T - $535
  • SquareTrade - $149
  • Difference = $386
Two device failures in two years:
  • AT&T - $734
  • SquareTrade – $199
  • Difference = $535
A research report on iPhone failure rates in 2009 showed that 33 percent of iPhone owners experienced an iPhone failure within the first two years, which demonstrates the probability for a failure is higher than most people expect. "

I have a lot of pretty clumsy friends and I've fixed my share of water-damaged and shattered iPhones. (And yes, that picture above is a friend of mine's iPhone that they shattered last week.) I think I'll be marketing SquareTrade to my friends instead.  Do any of you have any experience with SquareTrade or plan on picking this up soon? Let us know in the comments!