Though most of the current talk about the iPhone is speculation on what features it will or not have when released, as well as speculation about what will be added further down the road, there are some reports that focus on more practical issues, such as insurance. A recent ThinkSecret report mentions that much like iPods, the iPhone will be insured by Apple.

Though mobile phones are usually insured by the carrier that sells them, in the case of the iPhone things will be a little different. There will be no insurance offered for the iPhone from AT&T or Asurion, the firm AT&T uses for its insurance plans. Instead, Apple will be offering an AppleCare plan for the iPhone, similar to the AppleCare plan that currently offers for iPods. However, unlike traditional carrier insurance, this AppleCare does not cover any damage caused by the user.
While the report does not mention any pricing for the iPhone AppleCare, considering the fact that Apple currently charges $59 for AppleCare for iPod and $39 for AppleCare for iPod nano, it is likely that the iPhone care will probably cost a bit more than that of an iPod.

While unusual, it is not surprising that Apple would want to take care of insuring the iPhone through its AppleCare service considering that they will also be offering two years of free phone support for the device. Much of the success of the iPod is due to the how well everything works, even when there are problems with the device. Keeping everything under one roof will help Apple make sure that the customer experience is flawless. While the AppleCare will probably cost more than the insurance for other phones, Apple has a very good reputation when it comes to customer service and is a very trusted brand.