Touch Screen is Dead

My HTC Incredible 2 Touch Screen has dead spots and when stopping buy the store I was asked "Do you have insurance, because if you did I would just give you a new phone. But your touchability is being lost so now you have to buy a new phone."
I am 19 months into my contract. Please correct me if I am wrong, but isn't the insurance for the first year only?
I was told the best solution is to turn my phone on and off until the screen was usable. Come on, is this tech support?
I visited this website and it gave me steps to follow to reset the phone, claiming the touch screen prolems were caused most likely by a 3rd party app.
OK, so I reset the phone to the factory default.
Now the touch screen has more dead spots and I cant even do the initial set up on the phone. I am worse off than before. I am eligible for an upgrade, but do I want to spend more money to get into more problems with the same type of phone?
I hesitate to visit the store just to be told I need a new phone. I have not met anybody who hasn't heard the same solution, turn it on and off, if that doesn't work buy a new phone.

    Brosiek, thank you for your post and explaining what you did to attempt to resolve the issue. There aren't any settings in the phone that could cause parts of the touchscreen to stop working, so that is why there wasn't much troubleshooting. It does sound like the phone needs to be replaced. The warranty is covered for one year unless you have an extended warranty. Insurance is for when the phone is damaged, lost, or stolen. Also, you mentioned purchasing the same type of phone with an upgrade. When eligible for an upgrade, you can choose any phone that we have available, but the pricing will vary. Upgrading would be the best option at this point unless you have an extended warranty.
MarquiaF_VZW
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