Hi
I understand what you say about insurance but please do check any bank accounts as some do include mobile phone cover.
T&C and excess fees may apply.
Apple do also have a handset replacement programme.
If you have a local Apple shop you can take the phone in ,and they'll fully replace the iPhone for a fee.
Look at this link ->
http://support.apple.com/kb/index?page=servicefaq&geo=United_Kingdom&product=iphone -> under the 'Express Replacement Service ' to view the costs.
Or as long as no internal damage has happened to the phone caused by how the screen was damaged , then your possibly looking at around £60-80 to replace the screen by a HighStreet mobile phone repair standalone shop.
Any work carried out by a standalone mobile phone shop will invalidate any remaining warranty.
I personally wouldn't recommend using o2's own repair process due to the amount of people who have ,and then have posted on the forum listing issues they've had from that avenue of choice.
Of course it's up to you.
If your on an O2 Refresh Tariff you could look at paying off the Handset Plan, and then upgrade again. Just a thought.
As indicated prevention is better than cure so please do think about a case ,and maybe some form of screen shield.
I use the Apple Original Leather Case and a glass tempered screen shield that I hope would protect my iP6+ in any such event.
HighStreet Shops such as CEX for example sell iPhones. They have an online site that you can check out the prices on.
Good luck with your eventual choice.
