IPhone Glass Cracked

So yesterday, getting out of my car, I removed my iPhone from my center console, reached to put it in my pocket, and then heard a smash on the ground. Nearly in tears I bent over to pick up my iPhone and found huge spider web cracks along the entire screen of the phone. Only a few months after getting this amazing device I already destroyed it. After only a day I realize how much I have come to rely on this device and can't live without it.
So my question is this, can I just walk into an AT&T/Apple store, put down $300 for a new one and reactivate it on my account, or would I be required to pay a full $500 since I am not getting a new two-year contract with it? Thanks in advance.
~Jatoskep

A nice site. Hopefully you will soon get the step by step instructions added.
However, I have to say, it looks like your ability to do this repair yourself coupled with the cheap cost of basic parts has caused you to throw caution to the wind with your recommendation regarding cases.
Screen protectors do absolutely NOTHING to prevent the damage pictured on your site. NOTHING. Thin cases do not provide adequate edge or corner protection and no screen protection at all. If you can see the screen, you have no protection.
What is needed is a full enclosure case in order to have any expectation of surviving a drop from a normal standing height. A case that allows use of the phone without removing it makes the most sense.
The good news is as parts prices come down and more companies open up service for iPhones this repair process will get cheaper and easier to find. The bad news is that until people stop looking at the phone as a status symbol to flash around and try to impress their airhead friends the need for such services will grow rapidly.
Even doing repairs yourself costs more than the most expensive and sleek full coverage case on the market.

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