I've got about 3 weeks to decide if I want Apple Care (about $100 for a second year of warranty coverage) for a new iPhone 5 32GB.

What does it cost to replace if it just craps out? I found that replacing my iPad (64G, Verizon) would be $249. Not terrible for an $800 piece, so spending $100 to save $150 wasn't a great deal. (Had it gone acrappin' I might not say so, but I usually only buy these longer deals when the ratio is 5:1 or 10:1, like on an early flat screen TV I bought for $1600.)

Amble down to the Apple store and ask a Genius what happens if a phone goes kaput. They probably don't have real numbers right now for a 5, but I would ask about a 4 and see what they say; maybe that will give you some insight as to how they will handle things a year from now. (And doesn't Verizon have a $5 a month "guarantee" plan? Oops, I guess that's $120 by the time the second year rolls through.)