Apple offers AppleCare for iPhone
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The plan must be purchased while your iPhone is still under its original one-year warranty and it doesn't include a loaner phone while yours is out for repair, that'll still set you back US$29. Can anyone tell us why the new APP for iPhone isn't available to Residents of Alabama, Connecticut, Nevada, and Wyoming? Some legal thing?
More information is in the AppleCare FAQ, but it's a generic FAQ not one specific to AppleCare for iPhone.