Well, Apple Care for iPhone (from Apple) is $69. As mentioned above it will only cover manufacturing defects for an extra year, NOT any accidental damage or loss.
Even when I got my iPhone wet and shorted out the vibrate switch, I only paid $200 to get a brand new iPhone. There are services where people will replace cracked screens for you.
$69 is a large chunk of the purchase price to extend a warranty for a year considering most modern electronics will malfunction in that first year if they are going to do so. It makes more sense to me to save the $69 in case I need to replace the phone. It's called "self-insuring". If you saved up all the money that you would have spent on extended warranties, even in a plain savings account (much less a money market savings account), you'd likely have more than enough money to pay for any needed repairs out of pocket.
There's a reason they always push extended warranties at places like Best Buy and Apple--because they make money on that bet.
Now, if Apple Care was a real "insurance" plan that covered damage from water or dropping it, then it might be a little more tempting, but probably not still worth it unless you're just trashing yours all the time.
