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What does AT&T do when your cell breaks and you have insurance?

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If my blackberry curve breaks before the 2yr. comtract ends and I have insurance on it will AT&T send me another for free or will I have to buy a new one? Also will I need to send my broke phone back to them? Because my little ball keeps getting stuck and my phones starting to get really slow. And if I get another will all my contacts and pics and stuff be deleted. I have a media card. I bought themes for it to, will they be deleted?