You guys also forgetting another option. If I'm not mistaken, I have seen a replacement N2 glass touch screen (w/o LCD) for about $35.
Another factor, having insurance makes you a little more careless because you know no matter what - you are covered. Plus, makes you take more chances carrying a phone without a case or avoiding screen protector.
Having insurance is the only way to be 100% safe, no matter what happens. And from hearing a summary of everyone's experience above - nothing beats BB because you are paying only $10/month and 0 deductible and you get a replacement loaner while they are fixing your phone. But if you can sleep at night knowing you have a screen protector (yes, scratches happen, especially with sand specks inside of your jeans pockets), and a decent case with a some shock absorption and screen lip - than you always have a choice.
Regarding insurance, what PsychDoc mentioned is a well known fact. I wasted plenty of money insuring my gadgets in the last 3 years using SquareTrade. Although it was very cheap (especially with their 30-35% coupons), it all adds.
@PsychDoc - by any chance are you the same guy from ClubLexus (@NYC, taping and listening to Howard on your ES350)? Would be a funny coincidence!