Originally Posted by KAC:
“It's still a good idea to have it.”
Why? Insurance companies make money, which means you pay more for the insurance taken out, than the average amount they pay back, even after all the running costs of the insurance company, taxes, etc.
Insurance is the same as gambling except for when they payout. With both of them you pay a wager or premium, for insurance to get a larger payout should you be unlucky and suffer a loss, for gambling to get a larger payout if you are lucky. In both cases the insurance/gambling company will be making a profit out of what is staked with them.
If you are reasonably careful with what you buy, then insurance is a total waste of money. By the time you could actually claim off the insurance, you will on average have paid more in premiums, plus you'll have the hassle of proving that it is covered by the insurance anyway (insurance companies will use any excuse to get out of paying claims for accidental damage if they can).
For an 8GB iTouch, it just isn't worth even considering taking out insurance as they are so cheap already, and iTouch's (like iPhones) are actually quite sturdy and can survive the odd drop from a normal height onto a carpeted floor usually. Note that if you drop it into water or similar (a common cause of faults), the iTouch and iPhone have a part inside which permanently changes colour, so any repair company would be aware of what has happened, even if the unit was completely dried out before being sent for repair.
