Why did I buy insurance through Verizon?

My insurance plan (Assurion policy) through Verizon has a $199 deductible so my cracked iPhone 4 will cost $199 to replace yet if I just did an out of warranty repair through Apple it would cost the same??  Minus the cost of paying for the insurance????

Apple's out of warranty "repair" which pays for an exchange does not cover everything that is not covered under the warranty. If the iPhone was in pieces, it would not be exchanged.
And with Apple's out of warranty "repair" price, the warranty for the exchange is only 90 days.
Not sure if the same applies with Assurion's policy or if the policy pays for a new iPhone with a full one year warranty.

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