Apple now offers  a new AppleCare plan for iPhones called AppleCare+. This new plan is $99 and covers the device from two incidents of accidental damage. Each incident will cost you a $49 service fee to get the phone repaired. The AppleCare+ plan covers:

• Your iPhone
• Battery  (battery depletion of 50 percent or more from original specification)
• Included earphones and accessories
• Coverage for up to two incidents of accidental damage from handling

Just like the original AppleCare plan, software support is included as well.

AppleCare+ for iPhone extends repair coverage and technical support to two years from the original purchase date of your iPhone and adds coverage for up to two incidents of accidental damage due to handling, each subject to a $49 service fee.1 With AppleCare+ for iPhone, Apple experts can help troubleshoot issues over the phone or at an Apple Retail Store. They’ll answer questions about iOS, Apple iPhone apps such as Mail, iMessage, and Calendar, and help you solve interconnectivity issues between your iPhone and Mac or PC. And if your iPhone needs service under the plan, Apple technical support representatives can even set up a repair during the same call.