My ipod was dropped in toilet and screen wont work

my ipod was dropped in toilet and screen wont work.. is that something i could pay the service fee of 149 for or would it be not covered

If the iPOd is throughly dry, then the water has permenently damage your iPod.  Yes, Apple will exchang your iPod for a refurbished one for theprice listed here:
Apple - Support - iPod - Repair pricing
Since you did not specifiy your model iPod or capacity I do not know if $149 is corrt but that is the price for a 32 GB 4G iPod.

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