I buy and sell phones enough that it doesn't make sense for me to have insurance on them. I have been through 9 different phones in about 2 years (Lost one, broke...well washed one, and the rest have been resold) so in my case, since i like switching phones quite a bit, i have never had insurance. bought my Dinc for $200 on ebay. Craigslist was cheaper, but i wanted the scam-proof assurance that ebay provides.
If you plan on keeping the same phone forever, get insurance. If you are like me and want the "newest and greatest" (though actually i generally wait till all of the bugs have been worked out) It makes more sense to keep that money and put it in a fund to buy the next phone.