If you're picking up a 3GS and like to buy a warranty, Apple will extend coverage to two years for $69. It's good for if/when the phone spontaneously combusts without human intervention. But what about just dropping the thing?
SquareTrade warranties state that should you break your iPhone just because you're an idiot, they'll replace your iPhone with a brand new model. Their prices, below, are reported to be lower than Best Buy's by a good margin:
Current Promotional Rate/Regular Rate:
8gb 3G model: $76.80 / $96 (TOTAL for 2 years)
16gb 3G S: $96 / $120 (TOTAL for 2 years)
32gb 3G S: $120 / $144 (TOTAL for 2 years)
Knock on wood, but the iPhone 3G build has proven to be a pretty sturdy design. I've sat on the thing, dropped it more than once and basically treated it like crap, and the thing still works well. On the same token, I know someone (*cough* Andi Wang *cough*) who drops her cellphone down the stairs on a daily basis.
So she should probably consider this deal from SquareTrade, as well as moving into a ranch-style home. I'm going to take my chances. [SquareTrade]