Applecare is a far better choice than Squaretrade. Iirc, I only got 200 bucks out of Squaretrade on my broken 3Gs after the cost of the plan, deductible, and maximum amount they'd cover. It wasn't much of a deal.
I just bought Applecare for Weeze's phone, it's the third one she's gone through. It was like 79 bucks, no shipping cost, they sent the phone overnight, and she can break as many more as she wants over the next two years. Fortunately she had about 12 days left on her 2 year plan or we'd have been screwed. The new Applecare plan was just an upgrade/addition.
It's worth calling them, Duane.