The Applecare wouldn't have covered water damage anyway. Here's the thing about that $150-200 -- it does not cost you the upgrade. So, what you could do is have them do the out-of-warranty replacement at $150-200 to replace the phone with the exact same model. Then when the new iPhone comes out, sell this one for $300-400 (since it is basically as good as new), and then use the upgrade to buy the new iPhone for little or no money out of pocket.The only thing that has ever happened is that the light is still on - so we know the battery isn't dead. My honey is going to be so sad that she won't be able to upgrade and get the iPhone 5. It's all she's been talking about for month. Her Apple Care expired in June - so the cost to fix it is the same as the cost for a new phone ~150 - 200.