When I upgraded to my new iPhone last week I was warned by the O2 sales rep about not taking out any insurance. “If you lose your phone, that’s it. You can’t buy a new one, at least not until the PAYG version is released at Christmas”. It turns out of course, you can.

CPW’s iPhone FAQ states:

If you don’t have Lifeline insurance, you’ll need to get a replacement phone and SIM card:

To replace your SIM, contact O2.

If you want to buy a replacement iPhone contact our Direct sales team on 0800 049 0049, option 2. (You must have a Crime or Lost Reference number to buy a replacement SIM free handset. The 16GB model costs £410, the 8Gb model £352).

So if you’re with CPW, then you can at least get a (costly) replacement. No news yet on whether O2 will permit this as well. It’s also an indicator of the minimum amount that PAYG iPhone are likely to be when they finally launch.