Orange were good with my insurance when I broke my 3210 a long long time ago (drunken accident again)! However, a friend broke his c500 accidentally and they said it was done on purpose and refused to replace the handset.
I find their pay as you go bundle pretty good really - £10 gets me
300 free sms
600 Offpeak Orange Minutes
1mb Wap
The £10 to spend
Cant complain really
Just a shame their choice of pay as you go phones is more limited and they cost ££