Apple is now offering a new service called AppleCare+. AppleCare+ is only available for the iPhone and adds accidental damage to the usual AppleCare.
AppleCare+ for iPhone extends repair coverage and technical support to two years from the original purchase date of your iPhone and adds coverage for up to two incidents of accidental damage due to handling, each subject to a $49 service fee.
As well as this additional feature of accidental damage, AppleCare+ still offers all the previous features of AppleCare; such as two year repair coverage and technical support from the original purchase date. To qualify for AppleCare+ it must be taken out at the same time as you buy your new iPhone and costs $99.
Source: Apple
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