What happens if the screen breaks?

Mine hasn't but I saw online that someone's broke so I was wondering .. what happens if it cracks? Can I get a new one for free or do I buy it .. is their a warranty I can get or insurance that I buy in case is breaks [the glass not the actual phone]? If someone knew the answer that would be helpful :]

Which part about a subsidy paid by AT&T on your behalf for the iPhone 3G do you not understand?
The $199 price for the 8GB iPhone 3G is AT&T's subsidized price.
AT&T's non-subsidized price for the 8GB iPhone 3G is $399.
AT&T's subsidized price for the iPhone 3G is for new AT&T subscribers and for existing AT&T subscribers who qualify for upgrade or subsidized pricing on a new phone.
The full retail sales price for the iPhone has dropped $200, not $400. The only reason you paid $199 for the 8GB iPhone 3G is because you qualified for upgrade or subsidized pricing for the iPhone 3G. AT&T paid Apple $200 on your behalf. You get AT&T's subsidized price for the iPhone or for any phone that AT&T carries once every two years. The first generation iPhone was not subsidized by AT&T in the traditional way. The sales price for any new product is always higher for early adopters. The early adopters who purchased plasma televisions when first introduced paid much more for it than the sales price now.
You can have your iPhone's broken glass repaired by a 3rd party, but it probably won't be a whole lot less than Apple charges for the same repair - which pays for an exchange, not just to replace the glass.
You sure have a strange love for a company you describe as being a greedy, disgusting icon for America along with their policy in this regard being corrupt and unjust.
I'll bet you dollars to donuts that Apple will not provide you a new iPhone for free due to accidental damage on your part, just like an automotive dealer won't provide you a new vehicle and a computer company won't provide you a new computer due to accidental damage on your part, regardless how many vehicles you have purchased from the dealer, or how many computers and money you have spent with a computer company. None of the PC box assemblers do so, and Apple is no different. They are in business to make a profit and to make their stockholders happy.

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