Since I'm a T-mobile customer, I am stuck with buying used iPhones. About a year ago, I purchased an iPhone 3G on eBay for $274.99, unlocked it, and used it until a few weeks ago. A couple of months ago, I noticed that the iPhone camera and proximity sensors both stopped working. I dealt with it, but upon hearing about the iPhone 4, I decided to get an iPhone 3GS from an early adopter on eBay. Luckily, I got a Squaretrade warranty on the iPhone 3G in case something like this happened. Armed with a discount coupon, I purchased the iPhone warranty. I sent the iPhone 3G into get evaluated and was told today that my iPhone 3G was unrepairable and I would be issued a refund for the full $274.99. In two days or less, another $274.99 will be sitting in my Paypal inbox. I didn't even restore the iPhone to remove the jailbreak or unlock. The folks at Squaretrade did an excellent job. I was emailed an overnight shipping label after starting my claim and within three days was promised a refund. Pretty good for less than the cost of AppleCare. I bought another warranty for my iPhone 3GS in case something like this happens again. Squaretrade did an excellent job and I think everyone should get one. Just search for a coupon code first as it could cut up to 50% off the cost.